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Pick Your Battles: Things Aren’t As They Seem
“The small business representative encouraged me to bid.”
“I don’t know anything about that agency, the component, or the program, but it’s our type of work.”
“It’s three times larger than our annual revenue, but we need to go after things this size if we’re going to grow.”
“Our services will speak for themselves.”
“We could do that! We’ve never done it before, but it could work.”
“Quals? We have great quals. Well, actually, we might have one or two past performances in that general area.”
Have you ever uttered or heard those words? We hear them all the time. In fact, these common “reasons to bid” cause 80% of companies pursuing Federal contracts to lose about 70% of the opportunities they bid. In reality, every one of these phrases sends a red alert signal not to bid. The table below explains why you should stop and think every time you hear someone utter one of these bid decision myths.
The Myths: We've never done it before but it could work.
We have great quals. Well, actually, we sort of have past performance in that general area.
The Reality: Lack of directly relevant past performance usually spells disaster for government bids. If you haven’t done something very similar in size, scope, client type, and timeline, it isn’t directly relevant past performance.
The Myths: It’s three times larger than our annual revenue, but we need to go after things this size if we’re going to grow.
Here’s our chance to go to Hawaii (or Afghanistan)! I’ve always wanted to take the firm national/international, although we haven’t done work outside the tri-state area yet.
The Reality: Big jumps do not work in the risk-averse federal marketplace.
Dream big, but figure out the intermediate steps you need take to reach your business goals. For example, pursue a project 1.5 times the size of your largest current project. Try managing a project two states over or down the coast. Team with a partner that has international experience.
The Myths: The small business representative encouraged me to bid.
I don’t know anything about that Agency, the component, or the program, but it’s just our type of work.
GSA sent us this task order, even though we’ve never talked to the client.
I met a guy from Albuquerque who suggested we bid on this New Mexico deal. He said its right up our alley.
The Reality: The goal of government procurement officers is to avoid potential protests that grind projects to a halt and cost the government more money. Receiving multiple compliant bids helps them avoid potential grounds for protested awards.
Similarly, the competition, small business reps, and GSA all have a stake in making sure enough bids are received—to keep procurements moving forward, help meet OSDBU outreach targets, or check boxes before awarding a contract to a program the office knows and likes. Take their advice with many grains of salt. It’s less palatable that way.
The Myths: We just hired a guy who used to work there; he’ll help us win the contract.
We know a guy who knows a guy there.
The Reality: Sometimes, having the right key personnel resumes can be a differentiator, but it’s rarely the only factor in an award decision. Having met someone once or hiring a name vaguely recollected from ten years back will not consistently win your firm contracts.
To have a real shot at winning, you should be the company who knows the current program office, their current processes, and their needs. Ideally, you helped them refine their requirements before the bid came out and have introduced yourself to their usual procurement team. If you don’t know them, they certainly don’t know you. And if the bid is on the street, you can bet that they do know at least one other player in your market.
The Myths: The customer doesn’t know what they want, but we’ll tell them.
Our prices are high, but our reputation is stellar or our product is better and exceeds the requirements.
The Reality: Don’t waste your time marketing a fully-loaded Cadillac to someone convinced they only need a second-hand Yugo.
Federal procurement requirements are set over the course of 6-18 months or more. Drafting a scope of work and issuing a solicitation occurs toward the end of the procurement cycle. Based on market research, the Feds have established budgets and set requirement perimeters for how much bang they need for their buck. Telling them that all that time was wasted, that they made a bad decision, is not the way to win trust and contract dollars.
The Myth: They absolutely hate the incumbent, so we’re a shoo-in.
The Reality: Sometimes the devil you know is better than the devil you don’t know. Maybe the problem is only one staff member who the incumbent can replace.
Consider, too, that your firm is likely not the only competitor targeting the recompete. Do you know the program staff and understand their concerns? Can you make a truly compelling case to justify the hassle of transition?
The Myth: Our services will speak for themselves.
The Reality: In a pile of 32 proposal responses, the one with clearly defined differentiators, a technical approach built on an understanding of the client and requirements, brand recognition, and a reasonable price will likely win. Quality services alone won’t win the day.
The Myth: So what if the RFP has been out for three months. Two weeks is enough time to create a winning proposal!
We need to get our name in front of the customer, even if we don’t have time to do a quality proposal.
The Reality: Sometimes it is worth it to get your name in front of the customer, but what message does a sub-par proposal send to the client? Will that help you in the long run? Sloppy work sends the message that your services are not reliable and that their project isn’t a priority for your firm. What client wants to receive that message? What contractor wants to send it?
Plan ahead. If you haven’t, be assured someone else has.
There may be an exception to every rule, but those cases are few and far between. Instead of rolling the dice, take a page from the successful contractor playbook and create—and stick to—an annual BD/marketing plan.
- Target your market and track your pipeline.
- Determine a ballpark time and dollar budget for bids and proposals, and then add in an additional mid-size bid every 3-6 months and one strategic, all-out deal a year. That way, you’re prepared.
- Understand the customer—their mission, their needs, their challenges, the current state/process/program, the future state, and their budget.
- Know the competition and how you can successfully position your firm.
- Make sure the customer knows your firm through participation in industry days, conferences, associations, calls, and face-to-face meetings.
Most importantly, pick your battles and be strategic about which opportunities you pursue. Sometimes it may make business sense to pursue an opportunity that you haven’t pre-marketed. You just have to have your eyes open and be realistic about the chances of success given the time required to prepare a submission, the RFP requirements, the customer, and your human and financial resources.
Molly K. Gimmel & Diana Dibble Kurcfeld are the owners of Design To Delivery Inc, a government contracts consulting firm based in Bethesda, MD. For more information, they can be reached at 301.657.4440 or visit www.d2dinc.com