Winning Business in Todays Market: Optimizing Bid Decisions - Joe Yearta APMP Presentation

1. APMP BID & PROPOSAL CON 2014 | PAGE 1
Winning Business in Today’s Market
Optimizing Bid Decisions
Wednesday, May 28

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APMP BID & PROPOSAL CON 2014 | PAGE 2
Background
 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

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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

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APMP BID & PROPOSAL CON 2014 | PAGE 4
Bid/No-Bid Decisions
 Make bid decisions consistent with your strategic
plan
 Fit-Value-Risk
 Scope
 Contract size
 Margins
Existing Product
New Customer
Existing Product
Existing Customer
New Product
Existing Customer
New Product
New Customer
• High Tech
• Professional Services
• Manufacturing
• White Collar Services
• Blue Collar Services

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APMP BID & PROPOSAL CON 2014 | PAGE 5
Incumbent Myths
 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
 Demonstrate innovations
 Price the latest PWS, not your current contract

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APMP BID & PROPOSAL CON 2014 | PAGE 6
Proposal Life Cycle
Positioning Pursuit Capture
Proposal Planning and
Preparation
Post
Submittal
White White Black Story Blue Pink Red Gold Lessons Debrief
Hat Papers Hat Boards Learned
ID Need
Define
Requirements DRFP
Bidder’s
Conference RFP
ENs
OralsDue! Award
Government
Capture Team
Program
Manager
BD
Manager
Capture
Manager
Proposal
Manager
Contract
Administrator
Opportunity? Pursue? PTW Bid? Bid? Bid? Submit Protest?
Sources
Sought Amendments

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APMP BID & PROPOSAL CON 2014 | PAGE 7
CONOPS
 General approach
 95% “HOW”, 5% PP
 Organizational charts
 Value chains
 Inputs
 Processes
 Outputs
 Models and drawings
 Resources
 Tools of the trade
 Facilities
Approach
People Processes
Tools Metrics
Who How
How Controls
CONOPS
Capture
Team
Proposal
Process
Templates
GoToMeeting
Color
Reviews
Win!

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APMP BID & PROPOSAL CON 2014 | PAGE 8
Capture Team
Executive
Management
Program
Manager
Capture
Manager
Proposal
Manager
Contract
Administrator
BD
Manager

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APMP BID & PROPOSAL CON 2014 | PAGE 9
Executive Management
 Bid decision
 Direction
 Resources
 Participation in reviews
 Last minute changes
are devastating, but
recoverable

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APMP BID & PROPOSAL CON 2014 | PAGE 10
Win Themes
 Differentiate your team
 Unique
 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

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APMP BID & PROPOSAL CON 2014 | PAGE 11
Price to Win (PTW)
 Best value  low cost
 Competitive analysis
 Levers
 Base rates (COGS)
 Basis of estimate (BOE)
 Fee
 Indirect rates
 Fringe, facilities, overhead, and G&A
 Site-specific overhead rates
 Material handling

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APMP BID & PROPOSAL CON 2014 | PAGE 12
Proposal Evaluations
 Technical and
Management Approach
 Past Performance
 Price
 Best Value
 Non-price factors
 Price factors
 Low Price
Technically
Acceptable (LPTA)
 Sealed Bid

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APMP BID & PROPOSAL CON 2014 | PAGE 13
Primary Value Contribution
 Ensuring cost compliance
 Receiving best value from company’s spending
dollars
 Identifying and realizing new areas for dollar
savings
 BD research via quantitative and qualitative means
 Optimize FIT-VALUE-RISK

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APMP BID & PROPOSAL CON 2014 | PAGE 14
Opportunity
FIT
VALUE
RISK
Fit - Value - Risk

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APMP BID & PROPOSAL CON 2014 | PAGE 15
Waterline
B&P Water Line Approved
Not Approved
Opportunities that are of good Fit, good Value, and minimizes Risk
Opportunity #1
Opportunity #2
Opportunity #3
Opportunity #4

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APMP BID & PROPOSAL CON 2014 | PAGE 16
Strategic Analysis FIT
Opportunity
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?
Solution
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?
Strategic
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?
Culture
1) The Human Capital to succeed?
a. Skills b. Knowledge c. Values
2) Organizational Capital to succeed?
a. Culture b. Leadership c. Alignment

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APMP BID & PROPOSAL CON 2014 | PAGE 17
Strategic Analysis Value
Opportunity
VALUE

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APMP BID & PROPOSAL CON 2014 | PAGE 18
Strategic Analysis Value
Opportunity
VALUE

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APMP BID & PROPOSAL CON 2014 | PAGE 19
Strategic Analysis Risk
Opportunity
RISK

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APMP BID & PROPOSAL CON 2014 | PAGE 20
Strategic Analysis Summary
Strategic Map Analysis
Risk Size
Summary Summary Summary Annual Rev ($M)
1 Opportunity #1 3.1 3.4 3.0 25$
2 Opportunity #2 4.0 5.0 1.0 40$
3 Opportunity #3 1.0 2.0 3.0 50$
4 Opportunity #4 2.0 1.3 2.0 100$
Weight 100% 100% 100%
Scale
1- Very Poor, 2 -
Poor, 3 - Medium, 4-
Good, 5 - Very Good
Fit
1- Very Poor, 2 - Poor,
3 - Medium, 4- Good,
5 - Very Good
1- Very Poor, 2 -
Poor, 3 - Medium, 4-
Good, 5 - Very Good
Value

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APMP BID & PROPOSAL CON 2014 | PAGE 21
Strategic Analysis Strategic Map

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APMP BID & PROPOSAL CON 2014 | PAGE 22
• Clarifications
• Negotiations – Competitive Range
 Evaluation Notices (ENs)
 Final proposal revisions
• Debrief
 Must request
 Request one—win or lose
• Incorporate Lessons Learned into future
capture processes
Post Submission

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APMP BID & PROPOSAL CON 2014 | PAGE 23
• Start planning for the re-compete
 Establish and keep trust with your customer
 Perform, perform, perform
 Introduce innovations
 Cut costs
 Track changes in the contract
• Relationship, relationship, relationship
You’ve Won, Now What?

24. 24
APMP BID & PROPOSAL CON 2014 | PAGE 24
Joe F. Yearta, CF APMP
Director
Decosimo Solvability, LLC
jyearta@solvability.com
www.decosimo.com/solvability
256-971-2728
APMP®
www.apmp.org
Thank You

25. APMP BID & PROPOSAL CON 2014 | PAGE 25
Backup Slides

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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
planning.
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.
Why Solvability?