For many companies the key to new business and expansion is through competitive tendering for public or private sector contracts. In its simplest form, this process involves the completion of Pre-Qualification Questionnaires (PQQs) and Invitation to Tenders (ITTs) – documents specifically created to exclude companies and find the best bidder. As the completion of submissions takes time and resources it is important to submit a bid of the highest quality so your company has the best chance of success. One way to improve your chances of success is through effective bid and contract management.
Bid management process
Bid management is the process by which the completion of PQQs and ITTs is managed. It is everything from ensuring compliance, to responding to questions.
The process begins even before the release of a potential contract. A bid manager will prepare supporting documents, model answers and case studies of previous contracts. These can be work-shopped and quality assured in order to guarantee the strongest possible bid.
Once a PQQ or ITT is released the bid manager will assess the company for compliance and begin gathering all the required information to respond to the questions. Following this the submission can be completed.
However, the process does not end there. An effective bid manager will follow up on the bid and, regardless of the result, will request feedback in order to improve future submissions.
Requests for Proposals (RFP) Proposals and Bids
The RFP
in a major consultancy assignment you might be requested by the potential client to submit a formal proposal. This is the Request for Proposal or RFP.
The RFP will outline the assignment need and any key procurement or contractual obligations. A good bid manager at the client end will use the RFP and other formal guidelines to help establish the ground rules for competition, accountability, due diligence and independence.
If you are a preferred supplier then much of the work has already been done through pre-qualification. In some bids the time from RFP to evaluation of full proposals can be very long. This is as much due to EU, GATT or other regulations as to the effort needed to complete a sensible response.
Effectively the RFP will ask all qualified consultants to submit a proposal, sometimes known as a bid to complete the work. RFPs are not contracts, but they are the foundation for a contract.
The proposal (bid)
A proposal contains compelling arguments about your solution to the clients needs. It is written in response to an RFP.
It contains clear descriptions of how you will do the work outlined in the RFP. Additionally it should mention the features of your product and service, It describes how these features become specific benefits.
The proposal should follow the format of the RFP (despite what your own sales staff might say). In the proposal you explain how you plan to carry out and complete the work. You expand on the requirements, terms, conditions, or concerns listed in the RFP.
If your proposal does not meet all of the requirements listed then you may be disqualified. You can be disqualified for many reasons for example it was 5 minutes late when the courier delivered the six copies in plain brown envelopes. You must make sure that the proposal relates specifically to the customers needs and wants and shows how each potential benefit and risk reduction measure matches against those needs and wants.
A typical RFP and Proposal
- Deadline of proposal delivery
- Scope of proposal (For example strategic proposal only and no price)
- Other proposal information
- Decision date and notification details
- Contact person
- Description of work
- Include a complete and accurate “Statement of Work” required. (If you misrepresent then the contract could be terminated)
- Deliverables (Describe what the contractor must deliver to you to satisfy the contract. Is it a new application or just a report?)
- Deliverables of your company and employees (For example skills transfer plans)
- Timeline
- Copyright ownership (Intellectual Property Rights, Licenses etc.)
- Qualifications required ( do they need to be Security Vetted, have certain geographical footprint)
- Substitutions of project personnel
- Location of work
- Payment terms (Fixed price, time and materials, on delivery, on acceptance?)
- Evaluation criteria (Essential to prove due diligence)
The Proposal
The RFP does not identify a proposal structure, then follow the structure or the RFP for your proposal.
In Phases 1 to 3 you get to know your client and convince them that you have the ability to help them. In Phase 4 onwards you produce your proposal (Bid) to help you win the business
As stated, it is possible that your client may have a bid management team (to help them evaluate suppliers and the bids). Equally, you as a consultant, may be putting a bid forward. This means you might actually have to write it.
A Supplier Generated Mini-Proposal
- Introduction
- Proposed solution
- Proposed approach and methodology
- Response to Procurement and Contractual Requirements
- Statement of Compliance
- Company Financial Information
- Company Technical Information
- Relevant Company Experience
- Case studies
- References
Bid Management
You may be in the position of not needing a standard bid management process, perhaps you do not get involved in competitive bids or all your clients come to you because “that’s the way it is and always will be”. This may make your life
much easier, if so, then read no further.
However, If you do get involved in a competitive assignment then you will need some formality to your bid and screening processes. You may also need this for legal and due diligence reasons.
As a consultant, bid management is a skill that can help you in different ways.
A Client Service
You could sell your bid management (not the same as sales management) skills to your clients so that they can manage bids in order to gain new business?
A process to help you win business
This is essential if you are a sole practitioner or SME. Bid management can help you formally influence the outcome of an assignment This is also true for any large consulting companies and firms.
A way to get new clients
Knowing how the bids will be managed within other competitors and how your potential client will evaluate them puts you in a pole position for winning. Within procurement frameworks lthere is a formality for the supplier screening process. Your proposals will be screened with rationality and no emotion. Getting the words right, the format right will make the difference you need.