Preparing government proposals can be stressful. It involves numerous processes, many people in various stages of those processes, and a relatively short timeline for delivery.  With proper planning and attention to all five phases of the government procurement cycle, the proposal process can flow smoothly and have positive results.  Attentive participation in the following five phases will lead to a successful proposal process.

1.  Pre-Announcement

The first phase, crucial yet often skipped over by inexperienced companies, is the pre-announcement phase.  The pre-announcement phase is defined as that time before there has been a request for information (RFI), request for quotes (RFQ) or request for proposals (RFP). This period is when the government may be simply observing the industry (trade journals, trade shows, networking events) to identify potential products and services which address their particular needs. In this phase, corporate sales and technical staff should be “out there,” on the street, networking and paying attention to what is happening in government and industry to try to discern where opportunities may be forming. Trade shows, conferences, and your own personal network of people are good resources to use to gather this type of information. Reviewing purchasing plans for target agencies is a good starting point in understanding when and how an agency is planning on spending money. Using this information as a guide will help determine where the government might be looking for ideas. For example, if the five year spending plan includes complete replacement of their IT infrastructure, trade show shows and publications which cover these products and services are where government buyers might be looking.

Once these sales and/or technical teams have identified possible opportunities, they then have an advantage – their managers can begin to identify strategic partners, make strategic decisions for marketing and advertising, and position themselves with agency contacts through one on one communications.

2.  RFI and Sources Sought – Pre-RFP Activities

The second phase includes several types of pre-RFP activities.  At this point the government has issued an RFI, or “Request for Information” or a “sources sought” announcement.  These are usually very general announcements, typically a few paragraphs in length, testing the market and availability of targeted products and services. It is usually a wise decision to participate in this phase (there are exceptions though), since this is an opportunity to influence the requirements. Communications are open between the government and companies – so it is an important time to have sales and technical teams talking to the government during this phase. When evaluating what information to submit in response to these types of announcements, remember that responses are open to the public. Companies must use caution in deciding what to submit; too much information can reduce some strategic advantages they may have over competitors.

The people involved in the this stage could vary from a few of your best sales team members and lead technical people to teams of ten to fifteen people, depending on the size of the opportunity.  With larger procurements, it helps also to have some strategic planning staff working on capital investment or incentive issues.  They can begin to lay the groundwork with the sales and technical teams before the RFP is released.  This is a critical step because many RFPs have such rapid turn-around times that having a jump-start on your funding, personnel, materials and other resources could mean the difference between meeting your delivery deadline or missing it, or even worse, submitting a response that does not accurately reflect the costs and resource requirements.

3.  RFP Development – Draft RFP

The third phase is the draft RFP (Request for Proposal) phase.  Companies who have participated in the RFI may be invited to review and provide input to the draft RFP.  This is a chance to provide information that will influence the RFP in the direction that best aligns the technology and/or services to your company’s advantage; however, keep in mind that typically the government cannot write the RFP so narrowly that your company is the only potential provider. By participating in this phase companies:

• Learn what the government is trying to achieve in the solicitation.
• Provide technical and financial guidance to the government (what is available, what are emerging technologies, what services and product must be included, what are industry costs and other considerations).
• Provide input as to how the solicitation is worded to create an even playing field for the competition, a complete solution, and clear requirements.
• Provide input as to the deliverables, including timeline, of the proposal submission as well as products and services.

This is an interactive process which can be very time-consuming. The benefits of participating in this phase make participation a strategically wise investment.

4.  Proposal Response and Submittal

The fourth, and the most aggravating phase for most companies in the proposal process, is responding to the proposal.  Once the proposal has been released, the response time is typically four to eight weeks.  By participating in phases 1-3, your company should be well prepared to proceed. If not, prepare to scramble!

A proposal response usually is comprised of three volumes – pricing, management, and technical. Some RFPs will combine the technical and management responses into one volume. And some RFPs add a separate volume for past performance. The proposal response process should involve all critical teams within the company:  financial management, contracts, legal, sales, technical, management, operations and proposal.

The financial team may consist of one person performing all functions in a small company, or multiple individuals specializing in pricing, procurement, and subcontracts. This team must determine the actual cost of services, mark-ups and price to win. In small companies, this process is usually managed jointly with the senior executives. In larger companies, this process involved several steps including preparing an internal business case for the opportunity where an internal review team evaluates the cost justifications and the proposed price to the customer. The internal evaluation can take as long as the proposal writing process and is conducted concurrently with the response writing effort. Occasionally, in large companies, this process may result in a no-bid decision because the price to win is not approved or other pricing challenges.

The contracts and legal groups may be two separate departments in larger firms or be performed by the same department in smaller companies.  The contracts department monitors the conformity of what is being delivered against what is contractually mandated. The legal department looks at every aspect within the RFP to assure compliance with overriding contracts (such is the case for government-wide area contracts (GWACs) and task orders), government rules and regulations, and internal company policies.  Together, contracts and legal try to narrow what is promised to very specific, quantifiable, definable, and measurable terms.  Always remember:  what is proposed in the response to the RFP becomes a legal obligation once the opportunity is won.

The sales team should provide insight to the customer. They are responsible for knowing the history of the RFP and the agency’s culture. This knowledge is critical for most successful proposals. Knowledge of the agency, and the end-user in particular, will help in determining a winning strategy. The sales team should be involved with reviewing the technical solution, management approach, and pricing, and providing input as to how the customer will potentially receive what is being offered.

The technical team is comprised of all the technical staff required to develop the solution. Their primary responsibility is to review the statement of work (SOW) and make sure that the technical solution addresses each and every requirement specified.    

The management team is comprised of the program manager and his/her support staff. They must address how the company will manage each aspect of delivering the product or service. In addition, the management volume address the interaction between the company program management office and the government program management office. Depending on the complexity of the RFP, there may be other levels of company-government interaction that must be managed and therefore must be addressed in the proposal. Other topics covered in the management volume include: quality control/assurance, security, personnel/staffing, training, risk management/mitigation, and past performance.

If the RFP has an operational component to it, rather than being a simple product delivery, then the operations team will be involved.  This may include people from the management level or SMEs – Subject Matter Experts – who will address particular processes or tools that need to be used.

The proposal effort is led by a proposal manager, who manages the input from all of the other teams, as well as the proposal support staff. The proposal support team may include a proposal coordinator, proposal writers, technical writers, graphic designers, production, and proofreaders. In addition to managing the proposal team and the response documents, the proposal manager leads the gap analysis.

The gap analysis must identify areas where the company may need to acquire a teaming partner, subcontractor, or vendor in order to meet the RFP requirements. The gap analysis process is easily managed by creating a compliance matrix (tracking each requirement against the product or service to be provided that fulfills the requirement). In some cases, the RFP requests that a compliance matrix is submitted that cross-references the government’s questions or requirements to where the answers and solutions are located within the proposal.

It is the proposal manager’s job to prepare the response outline and send it to all staff responsible for writing and developing the solution.  A good proposal manager will facilitate the whole process and make sure that everyone understands the requirements, is working together amiably and on schedule. He or she will also help to define the discriminators – attributes that set your company apart from the competition.

While all aspects of the response process are critical, submitting the proposal on time is perhaps the most absolute. Any proposal submitted past the due date and time is likely not to be considered. Proper logistics planning is the one element for being sure of on-time delivery. Electronic deliveries sound easy – but don’t overlook the possibility of email servers being down, internet connections being down or slow, or for server-based submissions – that the receiving server is down. Hand delivery considerations include traffic, poor weather conditions, and the person who is delivering the submission (that they don’t get sick, hurt, or otherwise delayed). Delivery services, such as express mail, UPS, FedEx, also have risks associated with timely delivery.

No matter how the submission will be delivered, allow time for surprises and have a back-up plan.

5.  Debriefing

Whether you win the contract or not, a debriefing session is a valuable learning tool for your company.  If you win, you want to learn what you did right and what you did wrong, because there is always room for improvement, and the customer is your best source to help you improve.  If you lost, the debriefing is even more important.  The program manager should request a debriefing session from the customer and include a core team of representatives from each of the teams involved in the proposal process – sales, technical, management, operations, pricing, contracts, etc. – to learn what you did wrong in specific areas and how best to improve the processes for the next time.  Here at Comprehensive Proposal Services we have found that what companies do wrong, they tend to do wrong consistently.  So enter these debriefings with an open mind and check your ego at the door.  As with anything else in life, what you learn will benefit you only if you use it.

(c) 2008 Linda Davies