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Contract Value: What is Contract Value?

A contract value is essentially the price tag that a government contract is worth in terms of dollars. Government contracts can have values ranging anywhere from several hundred dollars to multi-million dollars. All of this depends on the products or services that are being solicited. Another factor that often determines contract value is the size of the agency that issues the proposal. If a bid is issued from a smaller agency from a small town you can expect that the contract value will be relatively lower than a bid issued by the New York Department of Transportation, for example. The level of government, i.e. city, county, state, or federal also greatly reflects the value of contracts.

Contact values also vary depending on the industry type. You can expect a contract for bridge construction, for example, or defense equipment and aerospace to be quite substantial. While contracts for minor janitorial services and office supplies, for example, are usually significantly less.

 

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