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For Small Businesses Considering Federal Grants/Contracts
Staying Out of the Weeds:Key Stepping Stones On the Path to
Successful Proposals
Susan B. Pernia - October 14, 2009CONNECT Conference on Accessing Federal Funding
www.fed.org
Important Semantics to Avoid Miscommunication
Per Small Business Administration Glossary* http://web.sba.gov/glossary
Request for Proposal (RFP)* - A solicitation issued by the government to prospective offerors. An RFP describes what the government requires and how the offerors will be evaluated.
Proposal/Bid - Offeror response to an RFP/RFI/IFB, etc.
Grant* - Money given to a business that does not need to be repaid. [Selected by a panel of experts, typically does not include fee]
Contract * - A mutually binding legal relationship obligating the seller to furnish supplies or services (including construction) and the buyer to pay for them.
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www.fed.org
Key Messages
Don’t underestimate what it takes to win: It’s easy to write a proposal; difficult to win unless you have it wired
Know the Request for Proposal (RFP) and your response inside out: understand what is exactly required, secure clarification from the customer, gather team-wide RFP interpretations and best solutions, and prove compliance to management
Be prepared to make an extensive set of decisions: Ensure decision-makers identified upfront and deliver verified information, full team perspectives, and risk analysis so management can make effective bid approvals
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The Optimal Path
Examples of solid stepping stones
You know the customer well and they think you are the best, and pre-RFP they have asked for your input
You know the competitors’ strengths and weaknesses compared to yours, and you’re better
Your team meets or exceeds all RFP requirements
Your costs have a risk basis and are competitive You have prior proposals you can readily adapt You have the resources to bid You win the bid and no one protests You have the capabilities to actually deliver
RFP
Contract/Grant
Pre-RFP
Proposal
Deliver
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The Weeds
What can lead you off-path
Customer doesn’t know you, or does know you Incumbent or other organization is either well
positioned or preferred You are not sure of the players, or worse, the
decision-makers RFP requirements make no sense to you The proposal has to be submitted in two weeks
and your best people are booked with other work Risk is high and requirements are difficult to price It’s best to prime, but management wants to sub It’s best to sub, but management wants to prime To compete on price, you would have to propose
an indefensible cost and schedule5
RFP
Contract/Grant
Pre-RFP
Proposal
Deliver
www.fed.org
The Winning Path Is Comprisedof Many Strategic Decision-Making Steps
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RFP
Contract/Grant
Pre-RFP
Proposal
Deliver
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Key Strategic Decisions
Pre RFP
Should you go after a potential RFP?
What capabilities are you prepared to define, bid, and deliver
What agencies/organizations do you want to target based on alignment with your capabilities?
What competitors are you willing to face? What process will you use to track potential and
current RFPs? How prepared are you to address different
grant/contract administration requirements?]
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RFP
Contract/Grant
Pre-RFP
Proposal
Deliver
www.fed.org
Pre-RFP Self Check:On Path Vs. In the Weeds
On Path Defined and proven targeted
capabilities Customer Knowledge Familiarity with Competitors Awareness of RFP
development
In Weeds Bidding on anything No idea who will be deciding
the winner Internal arguments about what
to bid Solutions in conceptual stage,
not developed
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www.fed.org
Key Strategic DecisionsPost RFP Release
Should you bid on the RFP?
Who are the best resources to review RFP? If RFP is unclear, will you submit questions? What process will you use to determine your level
of competitiveness? Which of discriminators, if any, apply to RFP? What win themes are most compelling? How should gaps in your capabilities be
addressed – teaming, acquisition, research and development, etc?
What are the most effective risk mitigations?
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RFP
Contract/Grant
Pre-RFP
Proposal
Deliver
www.fed.org
Post-RFP Self Check:On Path Vs In the Weeds
On Path RFP reads as expected RFP requirements align with
capabilities Resources available to write
proposal Management supportive of bid
In Weeds RFP is unclear Team disagrees on approach Capabilities are lacking for
some RFP specs No one wants to be on your
team Most adept staff busy with
other work
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www.fed.org
Key Strategic DecisionsDraft Proposal Review
When should the initial proposal draft be reviewed?
Who will be most effective in writing vs. reviewing the proposal?
What will be the schedule for proposal development, review and approval?
How will RFP compliance be tracked? Who are the best/available personnel to bid? Which technologies/processes should be bid? What factors should be applied in cost model? What are the risks related to the proposed solution and
how will these be mitigated?
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RFP
Contract/Grant
Pre-RFP
Proposal
Deliver
www.fed.org
Proposal Development Self Check:On Path Vs. In the Weeds
On Path Clear proposal language Compelling themes and
discriminators 100% compliance with RFP High confidence with risk
analysis Cost model has firm basis for
estimating budget Team getting sleep
In Weeds Proposed solution not realistic Staff selected are available, not
capable of required work Cost estimates widely vary; no
relevant past experience for resource estimating purposes
Scant analysis identifies extensive risk
Proposal team has internal bickering, not collaboration
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www.fed.org
Key Strategic DecisionsProposal Preparation
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Should the proposal be approved for submittal?
Is each proposal section compelling/compliant? Does the proposal have internal consistency? Are pre-defined themes/discriminators evident? Is there any conflict of interest with future work? Is the price competitive, have a solid basis of
estimate, and reflect risk? Does the team have high confidence they can
deliver what is proposed?
Has management fully signed off?
RFP
Contract/Grant
Pre-RFP
Proposal
Deliver
www.fed.org
Proposal Submittal Self Check:On Path Vs In the Weeds
On Path Required proposal staff is
decreasing Proposal is on schedule Compliance verified No surprises come from
customer or team Risk is well understood and
accepted Team is cautiously confident
In Weeds Rewriting continues Cost estimating continues RFP non-compliance
identified Marketing pushing for
submittal while team is wary of proposed solution
Management unclear whether to submit or not, and not happy with proposal team
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Additional Resources
The FED provides workshops to assist small businesses in establishing their own proposal development business processes and practices
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