Consortia Bidding Examples
What formula should I use for Consortia Rate?
As stated above, one of the primary rules is that your rate is 10% off the lowest single published rate. Consortia require rack and corporate rates to be submitted for comparison purposes.The corporate rate should always be below rack when doing submissions and the Consortia rate should be 10% off of that. To be safe and to ensure that you have no problems doing submissions, your formula should be:
Rack Rate Formula —
example
- Rack = $100.00
- Corporate = $90.00
- Consortia = $81.00
Sato is the exception to the rule. They do not follow the same rate structure. Their rate is derived off of the government per-diem. They require that you give them 5% off.
Government Rate Formula —
example
- Government = $100.00
- SATO = $95.00