- Relationship Building & Marketing
Q: Why is “Pre-RFP/Proposal Marketing” important for a contractor?
A: It allows the contractor to build a relationship with the customer before an RFP is even prepared. This helps the contractor better understand the client’s needs and positions them to win the contract.
Q: What is the foundation for successful funding and project opportunities?
A: Relationship building. It requires being proactive, frequent contact, and establishing trust through ethical behavior and good performance.
- The Bid/No-Bid Decision
Q: Why must contractors be selective about which RFPs they respond to?
A: Because preparing a proposal takes significant time and money. Contractors must be realistic about their probability of winning.
Q: What are 4-5 factors a contractor considers in a “Bid/No-Bid” decision?
A: 1. Competition: Who else is bidding?
2. Risk: Is the project too risky?
3. Mission: Does it align with the company’s core business?
4. Extension of Capabilities: Can we actually do the work?
5. Reputation: How will this affect our brand with the customer?
- Creating a Winning Proposal
Q: What is the primary purpose of a proposal?
A: It is a selling document. It should be written in a simple, concise manner and highlight unique factors that differentiate the contractor from competitors.
Q: What are the three standard sections of a proposal?
A: 1. Technical Section: Focuses on the solution and approach.
2. Management Section: Focuses on the team, experience, and organization.
3. Cost Section: Focuses on the pricing and budget.
Q: What should be included in the “Technical Section” of a proposal?
A: * Understanding of the need.
Proposed approach or solution.
Benefits to the customer.
Q: What should be included in the “Management Section”?
A: * Description of relevant tasks.
Deliverables.
Project schedule.
Organization and experience of the team and company.
- Pricing & Contracts
Q: What are the two main types of contracts?
A: 1. Fixed-Price Contract: The price remains constant regardless of the contractor’s cost. The contractor carries the risk of cost overruns.
2. Cost-Reimbursement Contract: The customer pays the contractor for all actual costs plus a fee. The customer carries the risk of cost overruns.
Q: What must a contractor include in their price to cover unknown risks?
A: Management reserves or contingency funds.
- Evaluation & Success Measurement
Q: How do customers evaluate proposals?
A: They often use a scorecard to rate proposals based on technical approach, experience, and cost. Sometimes they perform a Best and Final Offer (BAFO) round.
Q: How do contractors measure the success of their proposal efforts?
A: * Win Ratio: The number of proposals won divided by the number of proposals submitted.
Total Dollar Value: The total value of winning proposals compared to the value of all proposals submitted.
- Critical Success Factors (Chapter 3)
Q: What is “Best Value” in proposal evaluation?
A: It means the customer isn’t just looking for the lowest price, but the best combination of quality, expertise, and cost.
Q: Why is the “Executive Summary” important?
A: It provides a high-level overview for decision-makers who may not read the entire technical proposal.
