It’s easy for new companies to feel defeated after losing a government contract that they put a lot of effort into. But there can be value just from pursuing an opportunity, even if you lose. For example, whether you win or lose if you pursue an RFP, assemble a team, and build a solid cost and technical proposal you will walk away with a deeper understanding of your rates, a refined selling proposition, an enhanced proposal library that will make every future proposal easier to build, and stronger relationships with future customers and collaborators.
When deciding to pursue an opportunity, consider your team’s calendar and current workload, and the effort required to draft a proposal. If your only intent when pursuing a contract is to win it, then your chances of finding the process worthwhile are low; if you look for benefits from the process itself, beyond winning the contract, then you're more likely to take good things away with you, whether or not your bid is a winner. Shift your team’s mindset so you can benefit from bidding, even if you do not win the contract.
Before deciding whether to pursue an opportunity, determine what success looks like for your business. Here are the important factors to consider when defining “success”:
If winning a contract is your only measure of success, your chances of succeeding are around 15 percent. But for new businesses, building trusting relationships is arguably the most important thing for future endeavors – and with some solid planning, you can achieve a 100 percent success rate in relationship building.
Companies should evaluate themselves with a self-score card. Give your team measurable KPI goals to help assess whether or not your proposal was successful. Those goals should be informed by the following four points, in which companies need to be competent before they can win government contracts:
Before pursuing your first contract, your team should be able to clearly describe your products or services, and what differentiates you from your competitors. Be prepared with answers to any questions about how your company operates, what you do, and why you are the best team to complete the work. You can practice reciting your strengths by completing a number of tasks:
Pursuing a contract is about more than just winning. Your proposal may be your first introduction to the government customer. Making a memorable impression will keep your company top of mind when the next bid opportunity rolls around.
Network with industry veterans who can help you succeed on your next bid. Use your proposal as a way to connect with potential teaming partners. By building a solid foundation with collaborators, you can work together seamlessly on the next project.
Industry rules and regulations are constantly changing. Being an expert in technical subject matter can help your company stay flexible and adapt to shifting demands. Implement regular training to make sure your team is ready to work whenever an opportunity arises.
Depending on your definition of success, here are some questions to help you decide whether this contract could be a success for you:
Figuring out your chances of winning (P-Win) is complicated, and we offer deep dives into each of these topics – but the key questions are:
The time required to prepare varies, depending on your measures of success. Here are some good rules to follow when planning a proposal timeline:
If you are going after the contract alone, we recommend that you:
If you want to team with another company that you know but have not worked with in the past, you need to subtract two weeks from your available time. This is due to time that will be lost to teaming admin.
If you know the prime but have never worked with them, then you will likely need 30 days to team up and write the proposal. Make sure to check the time remaining on the proposal.
There is no set window for learning, but if you want a prime to coach you, they will be most interested when you are collaborating on a proposal.
When pursuing a bid opportunity, be thoughtful and purposeful with your actions. Here are some ways you can incorporate these elements into your proposal process:
When you have a page limit imposed on listing your capabilities, you are forced to condense and filter your skills down to what’s important. Be precise.
Building a healthy, trusting relationship with government customers will bring long-term benefits. Ask yourself what the customer will remember you by. Even a losing bid can translate into success if you get a meaningful and insightful debrief from the customer, as required by government regulations.
Ten hours of drafting a proposal to build strong customer relationships is more valuable than ten hours of marketing or networking on Linkedin.
Before you can build relationships with other contractors, you need to make sure your team has the proper infrastructure in place. Aim to build at least one good contact with a potential collaborator per proposal. Plan out your operations and decide whether your team can realistically take on more work. Avoid embarrassment by putting your best foot forward.
Prime contractors may not see value in collaborating with you. Talk to your team to find a compelling advantage that you bring to the table. Create a value proposition that they simply can’t refuse.
Working closely with a prime contractor means letting them see the inside and outside of your operations. Avoid embarrassing yourself by ensuring your team is prepared for criticism. Your partner may avoid working with you in the future if you do not perform well in this respect.
When pursuing a contract, think about how you can build out your administrative side. Learn about industry compliance, rules, and regulations that you would have otherwise had no time to investigate. Writing a proposal with strict requirements will force you to learn about forcing functions before its due date.
Professional service providers can advance your team’s ability to draft a proposal. Reach out to professionals with expertise to save time when bidding. For example, hiring an accountant is a smart choice, as they can help you set up your rates and accurately calculate your overhead costs, G&A costs, and fringe benefits.
Setting your pricing rates in the competitive GovCon market is a challenge. Before you submit a bid, decide what your team’s rates are. For example, your project manager’s time may have a different value from your lead developer’s time when it comes to invoicing the customer. Double-check that all your administrative details are finalized before bidding on an important assignment.
Find a contract that is relevant enough to you and contains your industry specialties. Submit your bid with no expectation of winning, but rather with a view to benefiting from a business development perspective. While winning a government contract is great, shifting your paradigm will help your team grow even after a loss. This alternative framework to a P-win analysis is helpful for small or new companies. Calculating your P-win requires a lot of information and data that new contractors do not have.
Be deliberate in your bidding. Many new companies jump at exciting opportunities without properly evaluating their own infrastructure or operational capacity. Remember the five steps to building a highly successful government contract proposal:
Remember, the government puts out about 1,000 new contracts on SAM.gov everyday. Don’t get worried if you have to pass on a great RFP. You can learn a lot even from an RFP on which you pass that will set you up for success with the next one.
Assuming you are going to go for this opportunity, we suggest diving deeper to get ready to build your team and proposal: