This document summarizes a webinar on making sound bid decisions and avoiding poor decisions that can lead to losing bids. It outlines seven criteria for qualifying deals, including strategic fit, solutions, customer advocacy, finances, and costs. It also discusses improving win probability through understanding customer needs, having the right solution, teaming partners, and personnel. Finally, it emphasizes making early bid decisions, focusing pursuit efforts, and reaffirming decisions to increase the likelihood of winning bids.

1. To Bid or Not to Bid: Seven Criteria for Making Sound Bid Decisions and Avoiding the Traps that Lead to Poor Bid DecisionsWebinar Presented to APMP Greater Midwest ChapterApril 20, 2011Bob Lohfeld, Lohfeld Consulting Groupwww.lohfeldconsulting.com

2. The Traps That Lead to Poor Bid Decision-making “We can win that deal because this is our kind of work, so let’s bid and don’t worry that we’ve never met the customer.”- Technical Manager“Let’s bid deals that have the highest probability of success because we don’t get any bonus money if we finish in second place!”- Capture Manager“Every dollar we spend on new business acquisition is one less dollar that we have to spend on other competing priorities, so let’s bid the deals that don’t cost very much.”- Financial Manager“Let’s take a portfolio approach to deal selection to maximize the likelihood of achieving next year’s revenue number with a realistic investment in new business activities.”- Corporate Executive“Shoot for the moon, all we need is one really big win and we can sell the company!”- Entrepreneur2

3. The right questions: Should we bid and can we win?The wrong question: Would you like to do this work?We should bid:Deals that fit our core competency, andMeet our financial objectivesWe can win if we:Understand the customer requirements and objectivesCan develop a sound solution that addresses real customer needsHave customer advocacyFavorable competitive environmentHave a clear win strategy—technical/management and priceHave the resources and time to pursue the opportunityAsking the Right Questions is Key3

4. “They don’t know us, but we can introduce ourselves by sending them a proposal.”“We can use this proposal as a training exercise.”“You gotta play to win!” Traps That Lead to Making Poor Bid DecisionsTIPIf they remember you at all, it will be as a loser.TIPYou may make the customer’s “Wall of Shame” by having your trainees write and submit a proposal that was obviously done as a training exercise.TIPI can’t believe anyone would actually say this, but they do.4

5. Making the Bid Decision in Four StagesQualifying a deal: 7 factorsImproving your win probabilityCommencement of pre-proposal activitiesAfter RFP release5

6. Strategic fit: Program focuses in core competencyProven past performance, experience, management, processes, toolsUnderstand customer requirements and objectivesRequirements are what the RFP will say (SOW)Objectives are what the customer wants you to accomplish by fulfilling the requirements (Goals)Right solutionTechnical solution ”right fit” for clientPast performance and experience in related workTeaming partners availableProgram manager/key personnel, staffing OKDeal Qualification Scorecard (Seven factors)6Customer advocacyYou know customer; they know youCompetition favorableCan beat known competitionFinancial objectivesStart-up investment, expected revenue and profits, ROS, EBITDA, DSOCost of Pursuit is affordableCapture, B&P, IR&D investmentsDeal QualificationScorecard7Color code: Blue(excellent), Green(good, but could be better), Yellow(poor and needs much work), and Red(we don’t know how to begin)

7. Deal Pursuit Progress8Blue= excellent Green= good Yellow= limited accomplishment Red= unable to accomplish*Win probability considerations determined subjectively, but final win probability is objective evaluation

8. Pre-Proposal Preparation Decision9Blue= excellent, Green= good, Yellow= limited accomplishment, Red= unable to accomplish

9. Bid Decision Confirmation10

10. Bid decisions are made early using the seven factors in the qualification scorecardQuality is built into the pursuit process by focusing on nine success factorsBid decisions are reaffirmed when pre-proposal work begins—increasing your likelihood of successFinal thought—you will always be remembered for the deals you win, not the deals you chased… Bid to win!Benefits of Making Bid Decisions CorrectlyTIPDeals that are not winners are discarded earlyTIPDeal pursuit progress scorecard using 9 factors focus the pursuit effort on making the deal a winner and discards losers early in the process11

11. About Lohfeld Consulting Groupwww.lohfeldconsulting.com Follow us on Twitter: twitter.com/LohfeldLohfeld Consulting Group specializes in helping companies create winning proposals.As the premier proposal services consulting firm focused exclusively on government markets, we provide expert assistance to government contractors in Capture Planning and Strategy, Proposal Management and Development, Capture and Proposal Process and Infrastructure and Training. Contact Bob LohfeldCEO of Lohfeld Consulting GroupEmail: RLohfeld@LohfeldConsulting.comTel: (410) 336-626412