ROR

Rate of Return is a financial metric measuring the gain or loss on an investment relative to the amount invested, expressed as a percentage. In government contracting, ROR analysis may apply to contractor financial performance, investment decisions, or evaluation of public-private partnerships.

For contractors, understanding expected ROR helps inform bid/no-bid decisions, pricing strategies, and investment in capabilities. Government cost analysts may examine contractor ROR as part of price reasonableness determinations. ROR considerations influence contract type selection, with cost-reimbursement contracts typically yielding lower but more certain returns than fixed-price contracts.