Ashish,

To estimate my market value, I would start with the money I would make as a 40-hour industrial employee. In L.A., start with $50K for a new graduate, good grades, with a perfect skills match. Add 25% for high-cost areas like L.A. San Jose, etc.

Then, to adjust for the contracting environment, add what you need to pay for your own Social Security, health care, Disability, and other insurances that an employer might have normally paid. Add the value of paid days off (contractors don't get paid Holidays or vacation). Some experts say that a contractor may find about 50% of all hours are actually billable, over the years, so double those figures.

Using those figures, if you could get an ordinary job at $75K, you should ask for up to $100 per hour.

If you need to finance new security clearance, plan to recover that cost during the employment period. If the clearance under discussion costs $50K, then you need $150 per hour.

If you work through an agency, they may cover some items in a group plan, saving some money. (Be sure that their commissions don't eat all of that savings.) Adjust your expectations accordingly.

-Mike

There's a wonderful series of essays on this topic at http://www.ganssle.com . Although you're invited to subscribe to his newsletter every time you turn a page, it's NOT required, just page-down. However I eagerly await this newsletter!!!