The Top 10 levers and dials that can help turn a losing bid into a winning LPTA bid include:
- 1. Base Salaries - drive toward the lowest feasible direct labor cost.
- 2. Levels Of Effort - challenge and render the fat out of bases of estimates that drive price (never confuse proposing with doing or either with winning).
- 3. Salary Uplifts - be realistic about the drivers of uplifts over the duration of the contract (e.g., how will healthcare's contribution to Labor Fringe change over time).
- 4. Subcontractor Use - go away from, or toward, subcontractors over time by using some to evaluate well, then dispose of, or use a little then a lot.
- 5. ODCs - forward price by employing discounts and technology (and other) deflators/inflators to more aggressively peg where unit prices are going to be.
- 6. Productivity Improvements - implement by category of work using curves.
- 7. Cost Avoidance - employ take-downs of various sorts and net them out with plus-ups (e.g., for Fixed Price bids).
- 8. ECPs - make up revenue potential using post-award contract changes.
- 9. Reality Modeling - identify the likely over- and under-evaluated items in a quantity-driven bid, then move all or part of margin, and where possible, some cost around to develop a low, yet profitable, evaluated price.