How to Prepare for a Re-Compete from a Contract Manager’s Perspective


When it’s time to prepare for a re-compete, contract managers need to examine several important aspects of the contract and ask a variety of essential questions.

Lessons Learned: Ideally, lessons learned are processes discussed and documented shortly after the proposal is submitted. People often think they will remember everything they need, but memories fade and inevitably staff changes. What are the lessons learned from the previous time you bid on this work? If you did not discuss a “lessons learned” in the aftermath of the prior proposal submission, what are lessons learned from other proposals? What went well? What did not go well? The goal is to continue improving and make the proposal process less painful.

Debriefing: If you received a debriefing the last time the contract was bid and won, what were the company’s strengths and weaknesses according to the government? Was there a particular part of the technical section that could have been improved? How did your price compare to competitors?

businessman or tax inspector analyzing document with magnifying glass in office, possible re-compete. business financial audit concept. copy space

Work to be Performed: Has the scope/statement of work (SOW) remained constant (e.g., janitorial or security guard services) or has the SOW changed significantly with emerging technology (e.g., software integration)? Do you expect the technology to change in the next couple/few years? Speak to the program office and provide input before the request for proposal (RFP). Can additional related services be added to the next RFP that may even provide your company a competitive edge (and grow the contract)? As the incumbent, use this to your advantage.

Contract Growth/History and Competitive Pricing: Has the company grown materially (i.e., affecting indirect rates) because the solicitation was bid? If so, can this be leveraged to lower the price to the government on the next proposal? Do you anticipate the contract growing over time? If so, you may be able to be more aggressive with your pricing by lowering the indirect rates based on the projected growth. Consult your chief financial officer, accounting department or pricing consultant to discuss further.

One misconception many companies have when proposals are evaluated on Best Value is that price does not matter. Price always matters. It varies only to the degree that it is important. In a lowest price technically acceptable (LPTA) solicitation, as long as a proposal is technically acceptable, it will be awarded to the company with the lowest price. In a Best Value solicitation, trade-offs will be considered. The lowest price could still win. Companies often think that the Toyota Camry or the Cadillac version will win. It depends on whether the government determines whether the price difference is justified, the amount of added value and importance. In short, do not lose sight of “answering the mail.” The government does not always believe that faster, bigger or stronger is better.

Small-Business Set-Aside: If the contract was previously a small-business set-aside and your company is currently categorized as “other than small,” consider being a mentor for a protégé company through the Small Business Administration (SBA). Mentors and protégés must find and select each other. Being a mentor in the mentor-protégé program should not be taken casually. For complete rules and regulations, please see the SBA Mentor-Protégé Program. According to the SBA, after the Mentor Protégé Agreement (MPA) is received, it takes approximately 90 days for SBA to review. If your company decides to become a mentor and the SBA approves the agreement, the mentor and protégé can form a joint venture (JV). If the protégé qualifies as a woman-owned small business, HUBZone, 8(a), the JV qualifies as well.

The average time for an opportunity to come to fruition in the federal government space is 18 to 24 months. Two years prior is an ideal time for the contracts manager to begin working with the capture management team. After the contract award and when contract execution begins, an entirely new progression begins for the contracts manager. Contact us today for more information about preparing for a re-compete.

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.

©2024

Share Button