Strategy, planning, process and execution are the critical elements in the world of international, national and local government proposals. Whether you are a small or large company, if you plan to respond to government opportunities, your success will be enhanced by developed and proven processes. This is the first of three articles which will provide an overview of what to expect in the typical government proposal process and how your company can best position itself to respond with a compliant proposal using an effective process.

In today’s competitive environment, in spite of government assurances of simplified procurement processes, those who respond to government solicitations are witnessing an increased in information requirements and documentation, concurrently with a decreased time to respond. Additionally, with the advent of large procurement vehicles (called Government-wide Acquisition Contracts or GWACs) in the United States (US), positioning your company to participate in GWACs is added to the process of navigating the requirements. These changes in government procurement processes are forcing companies to aggressively development long term strategies, in addition to implementing proven processes, which will allow them to respond completely and accurately with a compliant response. This is easier said than done.

Government solicitations, called a Request for Proposal (RFP) in the US and “Tenders” in most other countries, require careful attention to three stages of the government purchasing process: pre-RFP, RFP, post RFP. Ignoring any of the three stages can be fatal for the long term success of a company interested in doing business with the government. This series of articles will focus on the procurement practices in the US, but other national and international formal procurement processes are similar.

Stage I is the pre-RFP stage. This stage is when the government has identified a need, but has not determined how to fulfill that need. During this stage, there is open discussion between the government and industry. Potential solutions are discussed in detail, to include pricing as a rough order of magnitude (ROM), schedules for implementation, and technical specifications. Sometimes this is accomplished through informal information gathering at conferences. Typically however, the government will begin formal discussions with industry regarding the particular product or service. In the US, for most opportunities the information gathering step is accomplished by a Request for Information (RFI). A RFI is announced through public means, such as the Federal Business Opportunities website. The RFI will provide a summary of the types of products and services being considered, the agency, the application of the product/service, and the schedule of a potential RFP announcement. A RFI may have all, or some, of these components in the announcement. This information, combined with personal interaction with the agency buyers and users, and the agency procurement plan (available through each agency website), will provide industry with valuable guidance as to budget availability, timing, and potential for that particular RFI to become a RFP.

Participating in RFI responses is a crucial and strategic step. It allows companies to position themselves, both from a marketing perspective as well as a technical perspective. The marketing aspect is to increase awareness of the company, product/service, and performance and to develop a relationship with the potential customer. The technical aspect allows the company to provide a foundation from which the government can define their final RFP such to achieve the best solution for the best price.

When participating in the RFI process, each company needs to evaluate the benefits and potential consequences of what types and depth of information they should provide. RFIs are public documents, as are the responses. Therefore, careful consideration of the type of information provided is critical to the strategy and must be evaluated by each company. Typically, however, ignoring a RFI lends itself to a weaker position when the RFP is released, so some level of participation is a good decision.

It is important to note, that during the RFI stage, it is legal for company representatives to meet in person, or correspond by email and phone, with government representatives to discuss the need and the company’s particular solution. The government can not make any type of commitment, but they can have open dialog with industry. Many times, this dialog begins an interactive development of the RFP. This is the ideal opportunity for companies to have input into the content of the RFP. The government will issue a draft RFP to industry for review and comments. This is a critical step to make sure that your own company’s solution can best be represented within the RFP requirements.

For example, if the government’s perspective is that a 95% performance criteria is the standard, but your company’s solution can meet 98% for the same (or less) price, then strategically, you would want to try to convince the government during the pre-RFP stage to include the 98% requirement in the final RFP. This forces the competition to bid something new (more risk) or something more costly, positioning your company in the lead.

This is an oversimplified example, however, as there are other considerations which may impact the government’s decision to increase the performance requirement (such as perceived risk and competition). Therefore, discussions with the government should be evaluated and assessed with the overall company strategy in mind. Wild sales claims are not the best strategy; rather, honest and calculated positioning will result in an increased chance for success.

As government opportunities are constant and abundant, deciding which types of opportunities to pursue is a wise step during the pre-RFP stage. Through discussions and RFI analysis, you can save company resources by eliminating opportunities which do not benefit your corporate goals early in the process. Multiple projects and scarce resources, combined with unique and complex bids, demand that companies make informed and strategic decisions on opportunities to provide a better return on investment.

Our second part of this article series will provide insight into the RFP stage of the procurement process.

(c) 2008 Linda M. Davies