Frontload your cost proposal strategy and raise your Pwin

Before we get to today’s article, a couple of announcements:

  1. Early bird pricing for April classes (Foundations of Capture Management on April 17-18, Foundations of Proposal Management on April 19-20, and Proposal Speed Writing and Persuasion on April 23-24) is about to expire (3 weeks before each class starts). If you were planning to register, you should do so right away to save $100.
  2. Join more than 230 people already registered for our free one-hour webinar coming up on April 4, 2012 at 1 pm on the Power of Persuasive Proposals. The webinar will focus on five techniques of persuasion that have nothing to do with the usual types of ineffective selling prevalent in proposals: http://bit.ly/GUDcpn .


Article: Frontload your cost proposal strategy and raise your Price to Win

It’s a given – price is important. However, price proposals are often prepared at the last minute, without much review, customization, or polishing. But what can we do as proposal managers?

Often the best of us resort to continuously checking when the cost proposal will be done, assisting with scheduling cost volume reviews, or simply praying the pricing team somehow comes in low. The likely result of such an approach is a disconnect between price and technical volumes, and lower award probability.

One thing you can do to prevent such a regrettable situation is to stop playing Russian roulette with your proposals, and get involved in the cost proposal preparation. Your organization may not have required it from a proposal manager – or even kept you away from it – but times are changing. The government awards on price now more than ever. Not having any control over the price volume lowers Price to Win (Pwin) – and lowers a proposal manager’s overall effectiveness.

All proposal managers who strive to succeed have to embrace the learning curve of making a difference with the price volume:

  1. Understand the terminology and the basics of cost volumes.
  2. Learn where you can make a difference throughout the cost volume development process, and how.
  3. Learn how to help with key pieces requiring your involvement: WBS, Assumptions, BOEs, Price to Win, and Pricing Strategy to get the price to the number that the Price to Win analysis has yielded.
  4. Discover how to create a winning cost volume narrative.

We will teach you how to develop and manage effective cost volumes that maximize your win probability at our Cost Proposal Strategy class on May 16, 2012 in Rockville, MD. This course offers practical tools on everything from cost volume basics to process, data calls, assumptions, compelling cost volume narrative, WBS, BOEs, price to win, and cost strategies. Even better, it will all be from a proposal manager’s perspective – we understand how tough it is for non-financial personnel to grasp some of the concepts. Learn more or register at www.ostglobalsolutions.com/proposal-cost-strategy.


Useful proposal resources


Capture and proposal course schedule

Don’t miss early bird registration pricing – it ends 3 weeks before each class. Register at www.ostglobalsolutions.com/training/schedule

Date, 2012 Class Name
April 17-18 Foundations of Capture Management
April 19-20 Foundations of Proposal Management
April 23-24 Proposal Speed-Writing and Persuasion
May 14-15 Preparing Winning Multiple Award and Task Order Proposals
May 16 Cost Proposal Strategy for Proposal Managers
June 19-20 Advanced Capture Management
June 21-22 Advanced Proposal Management 

If you don’t find a class that suits your schedule, consider us for on-site corporate training at your company, or for a webinar for your dispersed workforce if you have multiple locations.


P.S.: As always – if you need business development, capture and proposal consulting or training support, contact us at 301-384-3350 or at service@ostglobalsolutions.com

 

Written by Olessia Smotrova-Taylor, AF. APMP, President ad CEO of OST Global Solutions, Inc., a business development, capture, and proposal management company that helps businesses grow in the federal market. Olessia has won more than $18 billion for her clients, and helped many small businesses acquire game-changing opportunities. She started working on IDIQs 11 years ago, including working on Task Orders exclusively for 5 years managing a $450 million/year IDIQ. She has won a few dozen IDIQs and Task Orders over the course of her career. She is the President of the Association of Proposal Management Professionals (APMP) National Capital Area (NCA) chapter, and a well-known speaker and author. She has developed and taught a graduate course in proposal development at NASA for the Stevens Institute of Technology. Prior to founding OST, she won business for Raytheon and Lockheed Martin, and wrote for the Financial Times of London. Olessia can be reached at otaylor@ostglobalsolutions.com or at 301-384-3350.
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