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Let Us Help You Bake LPTA Into Your Solutions and Bid Prices (03-04-13)

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.
But didn't I say 10? Yes I did. The tenth is to employ training to ensure that all of your business development people understand and promote the use of these and other levers and dials. The easiest way to accomplish this is to enroll in the next instance of our back-to-back Price To Win (PTW) and Strategic Pricing seminars.
Whenever there is a need for a second opinion as to where your bid needs to be priced to beat your competition, engage CAI/SISCo to conduct a detailed and independent PTW study for your "must win" pursuits. As a minimum have us conduct confidential critical review of your bid and pricing strategies.
A PTW study or audit proposal from us will cost you nothing. Call me now to a request a confidential proposal for a critical pursuits and, along with our proposal, I'll send you a free copy of my book Hope Is Not A Winning Strategy... But Price To Win Is! or arrange for a discounted seat in the next public instance of our How To DO Price To Win (PTW) seminar.
Contact CAI/SISCo today to help juice your firm's 2013 new business capture prospects.
Good luck and happy hunting!
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