A Labor Category (LCAT) defines a specific role with minimum qualifications, experience level, and education requirements. Used in cost proposals to price labor. Must match contract requirements.
is a metric concept federal contractors and grant writers run into across solicitations, regulations, and award filings
Labor Category is a measurement used in federal contract evaluation, source selection, oversight, or performance management. Understanding Labor Category matters because evaluators use metrics like it to compare proposals quantitatively, score past performance, set award-fee outcomes, and decide who gets the next option year. Contractors who track how Labor Category is calculated — and what target values look like in their NAICS or service area — write proposals that are concrete and defensible instead of generic and easily dismissed. Labor Category also has implications for contract administration: getting the calculation methodology wrong post-award is a common source of disputes and contracting-officer modifications. Pair Labor Category with the related metrics above to see how the federal government composes evaluation criteria into source-selection narratives.
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