1. APMP BID & PROPOSAL CON 2014 | PAGE 1 Winning Business in Todays Market Optimizing Bid Decisions Wednesday, May 28

2. 2 APMP BID & PROPOSAL CON 2014 | PAGE 2 Background Sequestration and consolidated requirements More firms competing for fewer opportunities Small-dollar, low-margin contracts look good Nothing easy about winning Its an art and a science The science (incorporating a series of specific activities and tasks) The art (using people and resources in creative, passionate ways to carry out the activities and tasks) Methods to improving and optimizing bid decisions 3. 3 APMP BID & PROPOSAL CON 2014 | PAGE 3 What are your TARGETS? Business strategy must be supported by pricing strategy Proposal pricing must be based on history and projections Flexibility should be used to create what if strategies (examples) Long-term strategy is required 4. 4 APMP BID & PROPOSAL CON 2014 | PAGE 4 Bid/No-Bid Decisions Make bid decisions consistent with your strategic plan Fit-Value-Risk Scope Contract size Margins Existing Product New Customer Existing Product Existing Customer New Product Existing Customer New Product New Customer High Tech Professional Services Manufacturing White Collar Services Blue Collar Services 5. 5 APMP BID & PROPOSAL CON 2014 | PAGE 5 Incumbent Myths Incumbents have an unfair advantage Theyre hard to beatso what? Use your capture team to level the playing field Learn each customer and their hot buttons Test innovations, approaches, and win themes against your customers hot buttons Were the Incumbent, we cant lose Yes, you can! Use your capture team Demonstrate innovations Price the latest PWS, not your current contract 6. 6 APMP BID & PROPOSAL CON 2014 | PAGE 6 Proposal Life Cycle Positioning Pursuit Capture Proposal Planning and Preparation Post Submittal White White Black Story Blue Pink Red Gold Lessons Debrief Hat Papers Hat Boards Learned ID Need Define Requirements DRFP Bidders Conference RFP ENs OralsDue! Award Government Capture Team Program Manager BD Manager Capture Manager Proposal Manager Contract Administrator Opportunity? Pursue? PTW Bid? Bid? Bid? Submit Protest? Sources Sought Amendments 7. 7 APMP BID & PROPOSAL CON 2014 | PAGE 7 CONOPS General approach 95% HOW, 5% PP Organizational charts Value chains Inputs Processes Outputs Models and drawings Resources Tools of the trade Facilities Approach People Processes Tools Metrics Who How How Controls CONOPS Capture Team Proposal Process Templates GoToMeeting Color Reviews Win! 8. 8 APMP BID & PROPOSAL CON 2014 | PAGE 8 Capture Team Executive Management Program Manager Capture Manager Proposal Manager Contract Administrator BD Manager 9. 9 APMP BID & PROPOSAL CON 2014 | PAGE 9 Executive Management Bid decision Direction Resources Participation in reviews Last minute changes are devastating, but recoverable 10. 10 APMP BID & PROPOSAL CON 2014 | PAGE 10 Win Themes Differentiate your team Unique Defendable with past performance examples Innovations need to be truly innovative Features and benefits need to provide true benefits Must answer an identifiable customer need in order to be a true benefit Must be tied to past performance Identify risks of your approach Ghost your competition 11. 11 APMP BID & PROPOSAL CON 2014 | PAGE 11 Price to Win (PTW) Best value low cost Competitive analysis Levers Base rates (COGS) Basis of estimate (BOE) Fee Indirect rates Fringe, facilities, overhead, and G&A Site-specific overhead rates Material handling 12. 12 APMP BID & PROPOSAL CON 2014 | PAGE 12 Proposal Evaluations Technical and Management Approach Past Performance Price Best Value Non-price factors Price factors Low Price Technically Acceptable (LPTA) Sealed Bid 13. 13 APMP BID & PROPOSAL CON 2014 | PAGE 13 Primary Value Contribution Ensuring cost compliance Receiving best value from companys spending dollars Identifying and realizing new areas for dollar savings BD research via quantitative and qualitative means Optimize FIT-VALUE-RISK 14. 14 APMP BID & PROPOSAL CON 2014 | PAGE 14 Opportunity FIT VALUE RISK Fit - Value - Risk 15. 15 APMP BID & PROPOSAL CON 2014 | PAGE 15 Waterline B&P Water Line Approved Not Approved Opportunities that are of good Fit, good Value, and minimizes Risk Opportunity #1 Opportunity #2 Opportunity #3 Opportunity #4 16. 16 APMP BID & PROPOSAL CON 2014 | PAGE 16 Strategic Analysis FIT Opportunity FIT Sales & Marketing 1) Can we position direct sales or partners? Prime vs Sub? 2) Is opportunity add-on or long term business? 3) Does strategy add or create confusion to our brand? 4) Can we create desired market position? Solution 1) Do we add customer value and benefit? 2) Can the differentiated benefits be dollarized? 3) Does the solution include valuable Intellectual Property? 4) Does the solution allow us to attain a cost advantage and/or shorten implementation? Strategic 1) Is it repeatable? Is demonstrable? 2) Doe we have a passion to develop and provide this solution to the market? 3) Can we offer innovation as a differentiator? 4) Can we be #1 with this solution? Culture 1) The Human Capital to succeed? a. Skills b. Knowledge c. Values 2) Organizational Capital to succeed? a. Culture b. Leadership c. Alignment 17. 17 APMP BID & PROPOSAL CON 2014 | PAGE 17 Strategic Analysis Value Opportunity VALUE 18. 18 APMP BID & PROPOSAL CON 2014 | PAGE 18 Strategic Analysis Value Opportunity VALUE 19. 19 APMP BID & PROPOSAL CON 2014 | PAGE 19 Strategic Analysis Risk Opportunity RISK 20. 20 APMP BID & PROPOSAL CON 2014 | PAGE 20 Strategic Analysis Summary Strategic Map Analysis Risk Size Summary Summary Summary Annual Rev ($M) 1 Opportunity #1 3.1 3.4 3.0 25$ 2 Opportunity #2 4.0 5.0 1.0 40$ 3 Opportunity #3 1.0 2.0 3.0 50$ 4 Opportunity #4 2.0 1.3 2.0 100$ Weight 100% 100% 100% Scale 1- Very Poor, 2 - Poor, 3 - Medium, 4- Good, 5 - Very Good Fit 1- Very Poor, 2 - Poor, 3 - Medium, 4- Good, 5 - Very Good 1- Very Poor, 2 - Poor, 3 - Medium, 4- Good, 5 - Very Good Value 21. 21 APMP BID & PROPOSAL CON 2014 | PAGE 21 Strategic Analysis Strategic Map 22. 22 APMP BID & PROPOSAL CON 2014 | PAGE 22 Clarifications Negotiations Competitive Range Evaluation Notices (ENs) Final proposal revisions Debrief Must request Request onewin or lose Incorporate Lessons Learned into future capture processes Post Submission 23. 23 APMP BID & PROPOSAL CON 2014 | PAGE 23 Start planning for the re-compete Establish and keep trust with your customer Perform, perform, perform Introduce innovations Cut costs Track changes in the contract Relationship, relationship, relationship Youve Won, Now What? 24. 24 APMP BID & PROPOSAL CON 2014 | PAGE 24 Joe F. Yearta, CF APMP Director Decosimo Solvability, LLC jyearta@solvability.com www.decosimo.com/solvability 256-971-2728 APMP www.apmp.org Thank You 25. APMP BID & PROPOSAL CON 2014 | PAGE 25 Backup Slides 26. 26 APMP BID & PROPOSAL CON 2014 | PAGE 26 Full complement of services to government contractors: Business advisory, including proposal and business development Integration of compliant cost accounting and project management Our clients trust our technical expertise and timely delivery on compliance engagements, as well as our guidance and confidentiality regarding growth and exit planning. As a practice of Decosimo, we have the resources to grow with any business and offer the same level of quality and expertise through every stage of growth. Why Solvability?