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Proposal Primer

Have you been writing proposals that don’t seem to make an impact? If writing proposals is a core component to generating revenue for your company, you need to understand the dos and don’ts to writing a proposal to make sure it’s easily understood and well written. As you begin to write a proposal think through the items below. Make sure that each proposal you submit fits the business you’re in – don’t fit your business to the proposal.

Proposal Process:


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QUALIFYING PROCESS FOR BID/NO BID

Three questions must be answered to come to a conclusion on every proposal opportunity:

  1. Have you been anticipating and expecting the Request For Proposal (RFP)?
  2. Has the decision maker been identified and pre-sold?
  3. Does full management commitment exist to the proposal development and will adequate resources be available to win?

Three affirmative responses mean you should bid!  Address any negative responses and if issues cannot be resolved, then don’t bid.

COMPREHENSIVE NO BID RESPONSE

If you have opted to not bid on a proposal, be sure to send a letter informing the potential customer of a specific reason your firm has chosen to decline the opportunity; especially if they have requested that you submit a proposal. Feel free to provide the customer with company materials and ensure them that they will be contacted by a member of your team to review the materials and educate them on the product and services your company has to offer.

PROPOSAL SCHEDULE

If you run across an opportunity that fits your business and you wish to submit a proposal develop a schedule and be sure to adhere to it!  The most effective manner to develop the schedule is to work backwards from the proposal due date.  You may want to develop a separate schedule for preparation of the cost/business proposal.

Make sure you leave plenty of time for production: copying, binding, and delivering the proposal. Remember, the copier knows that an important document is being copied, so it will be sure to breakdown on the day you need it – plan for this kind of mishap! Develop a back-up plan that includes having extra paper and toner on hand and sending the proposal to a copy center.  Many centers offer the convenience of sending the material to be printed electronically.  Please use caution for security reasons if you choose to use that type of service.

In addition, be sure to include the following items in your proposal schedule. Note: this information follows the process graphic above.

  • Theme meeting to differentiate your company from the competition
  • Outlines
  • Storyboards are optional, depending on the size of the RFP and duration of the proposal process
  • Complete the first draft
  • 1st Red Team Review
  • First costing exercise
  • Complete second draft
  • 2nd Red Team Review
  • Final costing completed
  • Complete final production
  • Ship Proposal
  • Oral Presentation
  • Post Mortem Analysis of the process

Finally, be sure to distribute the schedule to the entire team and send updates and progress reports on a regular basis. It is important that everyone is on the same page at all times.

AUTOMATED PROPOSAL MANAGEMENT CENTER

Ideally, an automated proposal solution will be implemented.  A variety of great software programs designed specifically for proposal management are available.  Do your research and pick one that best fits your needs and your budget.

TRACKING SYSTEM TO ASSIST IN FORECASTING

Tracking systems are typically included with the software packages available.  Otherwise, be sure to use some type of spreadsheet or database to track your proposals and assist in the forecasting of new RFP’s, revenue, and resources that will be needed to support various projects.

SUCCESS RATIOS

The ratios below will help you track your success.

DOLLAR WON RATIO = TOTAL CONTRACT DOLLARS AWARDED / TOTAL DOLLARS PROPOSED
KILL RATIO = TOTAL PROPOSALS WON / TOTAL PROPOSALS SUBMITTED
PREPARATION COST RATIO =  TOTAL DOLLARS PROPOSED / TOTAL COST OF PROPOSAL PREPARATION
PROPOSAL PAGE COST = TOTAL COST OF PROPOSAL PREPARATION / TOTAL PROPOSAL PAGES SUBMITTED

 

BEST PRACTICES

Below are 10 best practices, a proposal checklist to ensure you included all relevant information, and a list of proposal resources that may come in handy as you prepare. Try to keep all of these in mind while you draft and finalize your proposals.

  1. State your objective in the title of the proposal.
  2. First and foremost, be sure to focus on the customer’s business needs.
  3. Use bullets in the Cover Letter and Executive Summary to highlight key points.
  4. Place brief corporate histories and management biographies in rear of document.
  5. Do not include company mission statement or vision.
  6. Think thin to win.
  7. Use quantitative language as often as possible.
  8. Exercise the K.I.S.S. Principle.
  9. Highlight your competitive advantages as much as possible.
  10. ALWAYS be sure to clearly illustrate your company’s desire to earn the customer’s business!  Be clear, concise, and to the point.

WINNING PROPOSAL CHECKLIST

PROPOSAL COMPONENTS

  • Obtain complete copy of RFP.
  • Distribute RFP to appropriate staff.
  • Review RFP for missing pages/sections.
  • Prepare RFP breakdown and summary
  • Bid/no bid exercise.
  • Prepare questions for submission to contracting officer.
  • Receive and review responses to questions.
  • Prepare storyboard
  • Prepare draft response outline
  • Prepare questions for submission to contracting officer.
  • Collect, distribute and review pertinent background documents.

PARTNERSHIPS

  • Identify partners to participate in bid.
  • Determine type of partnership arrangement.
  • Prepare teaming or other type of appropriate agreements.
  • Receive signed agreements from partners.
  • Determine each partner’s level of effort for project.
  • Determine long-term staff requirements that each partner will contribute.

PROPOSAL STRATEGY AND CONTENT

  • Hold strategy meetings.
  • Identify the need for any additional outside resources.
  • Identify the partnership’s strengths and weaknesses.
  • Identify competition’s strengths and weakness.
  • Prepare solution to differentiate your solution from competition.
  • Theme strategy meeting.
  • Develop strategy for each component and complete response.
    Update draft response outline and revise as necessary.
  • Identify subject matter experts for each section.
  • Determine page numbers for each section.
  • Prepare directory of abbreviations and acronyms.
  • Identify relevant sections from past proposals and coordinate their use.
  • Prepare schedule/identify due dates for draft sections.
  • Determine review, feedback and editing process for written sections.
  • Ensure compatibility of software packages and versions.
  • Ensure compatibility of document transmission via e-mail and test.
  • Ensure sufficient quantities of appendix materials are available.
  • Prepare draft executive summary.

PERSONNEL AND ADDITIONAL RESOURCES

  • Prepare packet of materials for long-term candidates.
  • Prepare personnel checklists/tracking list for candidate documents.
  • Prepare commitment letters for signature by candidates.
  • Recruit long-term staff and consultants.
  • Identify best candidates and alternates.
  • Obtain signed letters of commitment from candidates.
  • Review personnel checklists for missing items.
  • Provide missing information.
  • Prepare skill charts.

REFERENCE PREPARATION

  • Use required/requested reference format.
  • Update and/or prepare past performance information as needed.
  • Review for accuracy and completeness.

PACKAGING

  • Design cover and select other graphics.
  • Prepare cover and include all information required by the RFP.
  • Determine how proposal will be packaged.
  • Purchase binders, tabs, covers, CDs, and cases, if necessary.
  • Ensure sufficient quantities of all packaging items are available.

WRAP-UP

  • Spell check entire proposal.
  • Gather appendix materials.
  • Prepare table of contents.
  • Prepare transmittal letter.
  • Prepare section tabs/dividers for proposal.

PRODUCTION

  • Determine production logistics.
  • Evaluate the use of available outside production resources, such as http://www.fedex.com/us/office/.
  • Insert special pages, charts, etc., if required.
  • Insert appendix materials.
  • Check pages in each copy for legibility.
  • Check each copy to ensure no pages are missing.

PROPOSAL DELIVERY/LOGISTICS

  • Obtain packaging materials.
  • Prepare label for proposal.
  • Prepare outside address label.
  • Mark original on 1 copy of final proposal.
  • Prepare receipt for hand delivery
  • Check courier service schedules and coordinate delivery.
  • Prepare package for courier.
  • Identify person to carry proposal, if opting for hand delivery.
  • Make necessary travel arrangements.
  • Label package.

 

PROPOSAL RESOURCE LINKS

LEGAL, CONTRACTUAL, AND FINANCIAL INFORMATION RELATED TO GOVERNMENT CONTRACTING

RESOURCES FOR SMALL, MINORITY, WOMEN-OWNED BUSINESSES

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