In a highly competitive and tightly competitive environment, your cost proposal solution must not only meet requirements, but also be responsive, competitive and persuasive.
From a cost perspective, it is almost impossible to influence the technical proposal. However, you can follow seven key foundations that will make your next proposal a winning cost proposal.
1. Available and leverage current customer information - understand the market factors driving prices.
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Knowing everything about your customers is the first step. You are only guessing customers, not knowing their previous purchase history, budget pressures, licensing program funds, program support deductions, customer staff and reserves, and their independent cost estimates and whether they are price-oriented or performance-oriented. You must acquire your wisdom morally.
2. Understand the cost of your business.
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We often hear from many companies that they were unable to determine the cost of completing the work before the final RFP came out. That is a big fight. With the RFP draft, you can estimate the cost of getting the job done early. If you don't have an RFP draft, you should have enough knowledge of the purchase to estimate how much it will cost - even if it is a broad estimate. Remember, this is not an exact science, you will be more accurate when you are close to the real RFP. Knowing the cost early will help you gain creativity in the final step. If you wait until the final RFP comes out, you are too late to make a creative change in price [unlike cost] because you are too busy guessing what the actual cost is. By knowing your costs early, you can make many creative choices to win.
3. Knowing the cost of competitors is doing the same thing.
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If there is no competition information, you only need to guess what is needed to win. This information is easily accessible through GSA Advantage, Internet Search, FOIA Requests, and subscription search services such as EZGovOpps and GovWin. Find out who your competitors are and how they will bid by watching your game and your teammates' past victories. Collect intelligence about the company investments they may make in the project and the bidding methods they may use. Identify tips that competitors use to lower prices, such as changing workplaces to reduce the base, injecting productivity enhancement tools, and employee greening. As time goes by, companies tend to do the same thing. You also need to consider whether your competitor is an established company. Existing companies often take on less risk and are less likely to think out of the box.
4. Provide a well-designed Work Breakdown Structure [WBS] that is associated with a performance work statement and supported by an estimation basis.
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We believe that without the WBS to assess the work outlined in the performance work statement or job description, you cannot fully consider all the elements related to performance. You may miss some elements or may increase your estimates. We often find that three-level WBS is enough to estimate the workload. In addition, we see that contractors often make estimates at all levels of the WBS, rather than estimating them only at the third level, leading to confusion and estimation errors. When you develop this level of detail, it's easier to detect where you can correct, cut, or add costing.
5. Actively determine your company's investment in your bidding project.
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Corporate investment is a project that your company develops to improve project performance or efficiency [training, recruitment, transition], property, plant and equipment investments, and company-specific emissions reductions at indirect rates. All of these types of investments are undertaken by the company, not the government's reimbursement program.
6. Be a company that is easy to conduct business.
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Give them what they ask for and so on. A winning company is a company that makes assessments simple, presents data [techniques and costs] in an organized, trackable manner, and presents data in both written and electronic formats. Even if the RFP does not require an electronic format, it must be handed over to the government in this way. Keep all formulas so that evaluators can easily follow your thinking process. Keep in mind that companies that provide them with a written and electronic version of their traceability may work with the evaluator to make ungraded points.
7. Be cost competitive and create something for it.
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This step is the easiest [true] if you have met all the remaining steps before this. This means you can improve your pencil and your ideas about labor rates, employee greening, downgrades, competitive cost structures, competition and new indirect rates, as much as possible for direct bidding and corporate investment.
Putting aside all these details requires a clear purpose and unity of thought between all the elements of the proposal. In short, you can't describe content that is not recognized in cost in a technical or management proposal. Many [and probably most] proposals are difficult to move from one volume to another. Although it sounds rough, there should always be identifiable links between elements, even if you have to create them yourself.
Most projects or products, whether implicit or explicit, have a work breakdown structure. For a project, it is usually similar to the structure of a work statement. For a product, it may look a lot like a specification. However, it occurs and it is as difficult as possible to agree on its specific details. This subdivision exists. This decomposition is the most viable contender for connecting various volumes.
Without a specific direction of solicitation, this segmentation would create a sensible, easy-to-interpret and important link between technology and cost advice. "But the customer did not ask us to do this.", you said. Yes, you may be right, but you really want to win. Customers want to buy from companies that are easy to do business. A good way to start consolidating this impression may simply be to make your proposal easier to understand than your competitors. "But the pricing for this is too much." You might say. Do you want to win?
Orignal From: Seven key formulas to win cost advice
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