Standardize your Opportunity Evaluations with GovWin Opportunity Assessment
If you are in government sales or are familiar with government acquisitions, then what we’ve sketched below should reflect familiar stages of the public sector business development and capture life cycle. If your company is new to government sales, you may want to pay attention closely, as these stages – and the associated activities – represent common best practices.
Business development kicks off with opportunity identification. Many companies have made investments in market intelligence platforms like GovWin IQ that allow their front line sales individuals to have awareness of public sector opportunities months, even years, before the procurement notice officially is released publicly. At the point of RFP release, if you’re just finding out about an opportunity, it’s likely too late to meet with the customer or get your team together, and you won’t have a realistic chance of winning.
The next phase of the cycle – the qualification stage – is the focus of this blog. What process do you have in place currently to qualify opportunities? Are you bringing rigor and discipline to your bid decisions? A lot of companies I have spoken with acknowledge they aren’t utilizing a formal process. Instead, many use past relationships or old-fashioned, gut-based decision making to choose yes or no. A byproduct of this unsystematic approach is your teams may be measuring what they’re going after in Excel or some other manual process, which can be chaotic and is challenging to scale, especially if growth is a company objective.
The other risk of not formalizing your qualification process is you risk spending a lot of time, money, and resources chasing opportunities in the pursuit stage that you really don’t have a good chance of winning - and not learning anything from those experiences.
Reduce Bid and Proposal Costs by Finding the Right Fits for Your Business
One way to reduce risk in your bid & proposal budget is to frontload the time you spend before the RFP drops honestly assessing your fit to win the contract. If you work for a small business the person handling the capture management responsibilities may perform various functions, so protecting their time and ensuring they don’t chase a bad fit opportunity is even more critical. If you’re at a larger organization then strategic priorities like growth and diversification may be causing pressure to be more efficient and to cut unnecessary activities and costs.
According to industry standards, average bid and proposal cost associated with pursuing an opportunity is 1% of the total contract value. So imagine finding an opportunity that seems to be a good fit valued at $1M. In this scenario bid & proposal costs would likely reach near $10,000 or maybe more. For larger contracts the time, effort, and financial savings can be even greater.
Let’s say you found 15 opportunities in GovWin IQ and you put them in your pipeline. Instead of writing 15 proposals, you should first honestly assess and analyze them. You might see that you only have a strong chance of winning 3, so you could drop the other 12, allowing you to save time and reduce bid and proposal costs. This is what a rigorous qualification process that is repeatable can help you accomplish.
GovWin Opportunity Assessment
Learn How to Save Time and Reduce Bid and Proposal Costs
Remove Guesswork from Bid/No-Bid Decisions with GovWin Opportunity Assessment
GovWin offers an affordable solution that standardizes your opportunity evaluation process, allowing to you to make bid/no bid calls on systematic assessments, rather than subjective criteria. It does this by guiding you through two types of assessments:
- Qualifying Assessment – a short 9-question, self-rated assessment type to quickly qualify opportunities
- Capture Assessment – a comprehensive 80-question assessment type used to analyze qualified opportunities and calculates probability of win or Pwin
The Pwin calculation is a weighted percentage based on your answers in these 10 areas:
- Requirements – Evaluates how well you know and comprehend the opportunity requirements.
- Customer Relationship – Measures your level of interaction with the customer and the customer’s perception of your competencies.
- Competitive Landscape – Examines your understanding of the competitors and how well you’ve competed against them in the past.
- Your Team – Analyzes your role as a prime or subcontractor, how well you know your potential teaming partners, and the overall skill set/qualification of your team.
- Management Capabilities – Explores your ability to fulfill the opportunity requirements, mitigate risk, provide key personnel, and identify metrics necessary to demonstrate success.
- Technical Capabilities – Assesses your technical differentiators and determines how you compare against competitors.
- Past Performance – Investigates the relevance, timeliness, and success of your past performance examples
- Opportunity Funding – Measures your understanding of the customer’s budget, cost estimates, and willingness to fund the opportunity.
- Award Tendencies – Examines how well you know the customer's propensity to issue an award based on historical trends.
- Bid Price – Evaluates your competitive analysis and bid pricing strategy.
GovWin Opportunity Assessment offers a repeatable framework that everyone on your team can share to standardize how you make your bid/no-bid calls and to assess if you have the capabilities, experience/past performance, pricing strategy, and customer relationship required to win. Additional insights and reports are also included, like our Action Planning Report, which provides recommendations for increasing win probability, and Pipeline Statistics – a tab within each pipeline which shows breakdowns of assessments and values by opportunity stage and type.
Ready to learn more? Watch this on-demand webinar hosted by Deltek Senior Product Manager Ben Kairys and myself to learn more about GovWin Opportunity Assessment.
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