In the competitive world of Federal government contracting, companies need to use every (ethical) advantage they can. Generally, business (cost) proposals, unlike technical proposals, do not have a page limit. If that’s the case, these are some suggestions on how you can differentiate your cost proposal from your competitors.
- Use graphics. Remember that not everyone who reviews cost proposals is a “numbers person.” Make your proposal easy to read and demonstrate your points by using graphics.
- Write an Executive Summary for the cost proposal. Most companies tell the Government Technical Review Team how wonderful their company is. Why not share that with the Government Business Review Team?
- Address cost and risk. Explain why your company’s higher indirect rates may result in lower risk to the government. If your indirect rates are higher because your company offers employees more training or the employees have accrued and used more leave because of low turnover, let the government know. Low turnover equates to lower risk.
- Ghost your competitors’ strategy. If you think you know the competitors’ strategy and can show why your solution is better, address it in the business proposal as well as in the technical proposal. Perhaps your labor rates are higher than your competitors because the employees at your company have more experience, education, or credentials; write about it. It can’t hurt if it focuses on your company’s strengths and may potentially hint at your competitors’ weaknesses.
- Do a final thorough review. This is obvious, yet somehow companies often run out of time or just want to be done with the proposal and miss this last step. Compare the cost proposal to the technical proposal. Do the labor categories match? Do the amount of Other Direct Costs (ODCs) and travel correlate? If it’s a Firm-Fixed Price (FFP), submit a payment schedule based on the RFP, if included. If it’s not included, recommend a payment schedule.
Finally, before you get started, read the RFP, modifications, and all questions and answers in their entirety to ensure that your proposal will not be thrown out because it is “Non-responsive.” Good luck with writing and preparing an effective and award-winning proposal!
We welcome the opportunity to put our construction accounting expertise to work for you. To learn more about how our firm can help advance your success, don’t hesitate to contact Kathy Corcoran at (302) 254-8240.
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