Winning Business in Todays Market: Optimizing Bid Decisions - Joe Yearta
APMP BID & PROPOSAL CON 2014 | PAGE 1
Winning Business in Today’s Market
Optimizing Bid Decisions
Wednesday, May 28
APMP BID & PROPOSAL CON 2014 | PAGE 2
Sequestration and consolidated requirements
More firms competing for fewer opportunities
Small-dollar, low-margin contracts look good
Nothing easy about winning
It’s an art and a science
The science (incorporating a series of specific activities and tasks)
The art (using people and resources in creative, passionate ways to carry out the
activities and tasks)
Methods to improving and optimizing bid decisions
APMP BID & PROPOSAL CON 2014 | PAGE 3
What are your TARGETS?
Business strategy must be supported by pricing strategy
Proposal pricing must be based on history and projections
Flexibility should be used to create “what if” strategies (examples)
Long-term strategy is required
APMP BID & PROPOSAL CON 2014 | PAGE 4
Make bid decisions consistent with your strategic
• High Tech
• Professional Services
• White Collar Services
• Blue Collar Services
APMP BID & PROPOSAL CON 2014 | PAGE 5
Incumbents have an “unfair” advantage
They’re hard to beat—so what?
Use your capture team to level the playing field
Learn each customer and their hot buttons
Test innovations, approaches, and win themes against your customer’s hot buttons
We’re the Incumbent, we “can’t” lose
Yes, you can!
Use your capture team
Price the latest PWS, not your current contract
APMP BID & PROPOSAL CON 2014 | PAGE 6
Proposal Life Cycle
Positioning Pursuit Capture
Proposal Planning and
White White Black Story Blue Pink Red Gold Lessons Debrief
Hat Papers Hat Boards Learned
Opportunity? Pursue? PTW Bid? Bid? Bid? Submit Protest?
APMP BID & PROPOSAL CON 2014 | PAGE 7
95% “HOW”, 5% PP
Models and drawings
Tools of the trade
APMP BID & PROPOSAL CON 2014 | PAGE 8
APMP BID & PROPOSAL CON 2014 | PAGE 9
Participation in reviews
Last minute changes
are devastating, but
APMP BID & PROPOSAL CON 2014 | PAGE 10
Differentiate your team
Defendable with past performance examples
Innovations need to be truly innovative
Features and benefits need to provide true benefits
Must answer an identifiable customer need in order to be a true benefit
Must be tied to past performance
Identify risks of your approach
Ghost your competition
APMP BID & PROPOSAL CON 2014 | PAGE 11
Price to Win (PTW)
Best value low cost
Base rates (COGS)
Basis of estimate (BOE)
Fringe, facilities, overhead, and G&A
Site-specific overhead rates
APMP BID & PROPOSAL CON 2014 | PAGE 12
APMP BID & PROPOSAL CON 2014 | PAGE 13
Primary Value Contribution
Ensuring cost compliance
Receiving best value from company’s spending
Identifying and realizing new areas for dollar
BD research via quantitative and qualitative means
APMP BID & PROPOSAL CON 2014 | PAGE 14
Fit - Value - Risk
APMP BID & PROPOSAL CON 2014 | PAGE 15
B&P Water Line Approved
Opportunities that are of good Fit, good Value, and minimizes Risk
APMP BID & PROPOSAL CON 2014 | PAGE 16
Strategic Analysis FIT
Sales & Marketing
1) Can we position direct sales or partners? Prime vs Sub?
2) Is opportunity add-on or long term business?
3) Does strategy add or create confusion to our brand?
4) Can we create desired market position?
1) Do we add customer value and benefit?
2) Can the differentiated benefits be dollarized?
3) Does the solution include valuable Intellectual Property?
4) Does the solution allow us to attain a cost advantage and/or shorten implementation?
1) Is it repeatable? Is demonstrable?
2) Doe we have a passion to develop and provide this solution to the market?
3) Can we offer innovation as a differentiator?
4) Can we be #1 with this solution?
1) The Human Capital to succeed?
a. Skills b. Knowledge c. Values
2) Organizational Capital to succeed?
a. Culture b. Leadership c. Alignment
APMP BID & PROPOSAL CON 2014 | PAGE 17
Strategic Analysis Value
APMP BID & PROPOSAL CON 2014 | PAGE 18
Strategic Analysis Value
APMP BID & PROPOSAL CON 2014 | PAGE 26
Full complement of services to government contractors:
Business advisory, including proposal and business development
Integration of compliant cost accounting and project management
Our clients trust our technical expertise and timely delivery on compliance
engagements, as well as our guidance and confidentiality regarding growth and exit
As a practice of Decosimo, we have the resources to grow with any business and
offer the same level of quality and expertise through every stage of growth.