Prepare Government Contract Proposals
This training will teach you how to prepare proposals that win Federal contracts. You will understand the types of solicitations and contracts used by the Federal Government. Also, you will learn how to respond appropriately to government solicitations with proposals that enhance your chances of winning a contract.
Let’s set clear expectations:
Many companies aspire to do contractual work for the federal government. The reality however, is most will not.
There are many reasons for this. Some firms are not qualified, some are not competitive, some will just talk about it, and others, well they just don’t understand how to prepare proposals that get attention and win contracts. It is also true that sometimes the government doesn’t buy the types of goods and services you sell, or in quantities that make it feasible for you to bid.
Expectations don’t always match reality. The best preparation for winning government contracts is understanding the process, aligning skills with needs and following-through. In other words, prepare, align and execute – that will help you beat the odds.
Build a solid foundation
Set a clear foundation for you to build a solid contracting career on. You want to be sure to tackle all of the positioning techniques we teach upfront, so your business profile is complete and presents you as the most viable option to do business with.
Start with defining what it is you do. Build your SAM profile. Pick your NAICS and PSC codes. Obtain a CAGE Code and UEI Number. Set up your FEMA and DSBS profiles. Register with locations you wish to do business with (City, County, State). Register as a sub for Prime contractors. Certify your business by all socio-economic programs available to you.
Develop a compelling Capabilities Statement and market your business to Government contacts in the agencies and departments you want to do business with. Introduce your business to the SADBU/OSDBU agents that will be able to get your business noticed.
This course is split into 5 parts:
Part 1: Seek Contract Oportunities
A key part of building a solid foundation is seeking contract opportunities that make sense or that justify spending the time and resources to prepare contract proposals. This is an important aspect of proposal preparation. A business can waste a lot of time and money responding to solicitations that do not make sense.
Ways to Find Contracts
- Utilize Select GCR Pro
- Find Prime Contractors Databases
- Seek Subcontractor opportunities
- Market directly to agencies
- Subscribe to bid-matching services
- Use procurement vehicles
Find Contracts with SAM.gov
Knowing how to find contract opportunities is critical. A key resource is the government’s website, SAM.gov where a good percentage of contracts is put on display for the open market to search for and bid on.
To outreach contract opportunities to the public, the federal government operates a robust, online service called System for Award Management, but more commonly known as SAM or SAM.gov. This single entry, government-wide website profiles available business opportunities and is one of the most powerful tools available to help a firm become successful in government contracting.
Find Contacts with Select GCR Pro
This is the most powerful program available to SAM registered businesses. This program gives you the power to pull contracts, new, expiring and recompete contracts are also available. It provides you with the contact information for all parties involved and the scope of the contract. You’ll see who holds the contract, and the award history. It one stop shopping for all things contracting. Contacts and contracts at your finger tips. For more information visit Select GCR Pro.
Explore Subcontracting Opportunities
Subcontracting with a prime contractor can be a profitable experience as well as a growth opportunity for a business. To help small businesses find opportunities, SBA maintains, SUB- Net, a searchable database of available subcontract opportunities. The SBA also displays on its website the Subcontracting Opportunities Directory by state.
SBA maintains a database of subcontracting opportunities called SUB-Net: Click here to learn how to navigate SubNet.
Utilize the Government Procurement Advisors at Select GCR
Every marketing client at Select GCR gets a dedicated GPA who will assist them in locating the right contracts to go after. Every advisor on staff is experienced in locating contracts that fit the scope of the business they are helping. Our staff has helped our clients procure over $700 million in contract awards. These people have a talent for finding the right opportunities and putting you in front of the right people.
Part 2: Solicitations
- Request for Quote (RFQ)
- Request for Proposal (RFP)
- Invitation for Bid (IFB)
- Source Sought – Request for Information (RFI)
Understanding Government’s Number System
Example Solicitation Number: 111111-22-3-4444
The ones represent the Buying Office. The twos represent the Fiscal Year. The three represents the Solicitation Type Alpha Code. The fours represent the Contract Identifier.
Solicitation Type Alpha Codes
- R = Request for Proposal
- B/I = Sealed Bid (IFB)
- J = Reserved
- T = RFQ Under $25k
- Q = RFQ under $150k
Request for Quotation (RFQ)
A Request for Quotation or RFQ is the type of solicitation used by the government to obtain information and quotations, but the responses are not considered offers. This solicitation type is typically used when the estimated value of the government’s need is expected to be under $150,000 and simplified acquisition procedures will apply. An RFQ, however may also be used in some circumstances where the estimate value of the government’s need exceeds the simplified acquisition threshold.
An RFQ bid package typically includes Standard Form 18.
Request for Proposal (RFP)
Request for Proposals or RFPs are used in negotiated acquisitions to communicate government requirements to prospective contractors and to solicit proposals.
RFPs for competitive acquisitions will, at a minimum, describe: the government’s requirements, anticipated terms and conditions that will apply, information required to be in the offeror’s proposal, and factors that will be used to evaluate the proposal. An RFP will result in a negotiated contract.
An RFP bid package typically includes Standard Form 33 or Standard Form 1447. It is important to note that some procurement systems, such as GSA’s eBuy – offer a fully electronic RFQ/RFP system.
If you are unsure of any provision within an RFP — ask the contracting officer for an explanation. SBA, PTAC and other qualified counselors can also provide helpful guidance.
Invitation for Bid (IFB)
An Invitation for Bid or IFB is often referred to as a sealed bid solicitation. There are typically no discussions or negotiations with the government buying office and the bid package – when issued — is considered complete for bidding purposes. Among qualified bidders, price is considered the key consideration by the government in awarding the contract.
Responsiveness to the solicitation’s terms and conditions are key to a successful bid. Be sure to complete your bid package in accordance with the instructions. Non-responsive bids will be eliminated from consideration.
An IFB bid package typically includes Standard Form 33 or Standard Form 1447.
Sources Sought – Request for Information (RFI)
Sources Sought, sometimes referred to as a Request for Information, is an advance notice to communicate to potential bidder firms the government’s interest in specific research and development projects.
This type of solicitation is used sometimes to determine the potential bidder interest or universe for a specific procurement. It is also used as market research to determine whether or not a small business set-aside is appropriate.
Uniform Contract Format
For most RFPs and IFBs, where simplified acquisition procedures are NOT applied, the government requires the use of a uniform contract format. This format is described in the noted FAR references and contains four parts and multiple sections.
Part 1
- Section A – Solicitation/Contract Form (SF33, SF26, SF18, SF1447)
- Section B – List of supplies & services to be acquired
- Section C – Outlines or explains the statement of work
- Section D – Describes packaging requirements
- Section E – Specifies inspection and acceptance
- Section F – Describes delivery and performance
- Section H – Outlines any special provisions
Part 2
- Section I – Contract clauses
Part 3
- Section J – List of attachments
Part 4
- Section K – Representations, certifications and other statements of offerors
- Section L – Instructions, conditions and notices to offerors or respondents
- Section M – Evaluation factors and award
All parts and sections of the solicitation are important. However, Section C in Part I and Section L in Part IV are particularly important and should be cross-referenced when reviewing the solicitation.
It is also important to note: contract solicitations for bids estimated to be below the simplified acquisition threshold or $150,000 will use a streamlined contract format and may or may not use some of the parts and sections outlined in the uniform contract format.
Part 3: Close look at Key Standard Forms
Standard Form 33: Solicitation, Offer and Award
Standard Form 33, Solicitation, Offer and Award is the solicitation/contract form used by the federal government, not only to solicit orders, but also to award a contract.
It is a bilateral document, such that the bidder signs the document and submits it to the government. Then, upon acceptance of the bid, the government signs the same document and a binding contract is established.
This form is used for either sealed bids or negotiated contracts valued at $150,000 or more.
Standard Form 1449: Solicitation/Contract/Order
Except in circumstances where an electronic solicitation is used, Standard Form 1449, Solicitation/Contract/Order for Commercial Items is the form used by the government to buy commercial items that are estimated to have a value of less than $150,000 and simplified acquisition procedures will be applied.
Standard Form 1447: Solicitation/Contract
Standard Form 1447, Solicitation/Contract is used in connection with negotiated acquisitions when simplified acquisition procedures will apply. It may also be used in lieu of Standard Form 26 or Standard Form 33.
Standard From 18: Request for Quotation
Standard Form 18, Request for Quotation is the form used by the government – when quotations are not solicited electronically — to obtain information and quotations, but the responses are not considered offers. An RFQ package is typically used when the estimated contract value is less than $150,000 and simplified acquisition procedures will be applied. Importantly, an RFQ may also be used for quotation requests that have an estimated value above $150,000.
Standard Form 26 is sometimes used to award a contract resulting from the use of Standard Form 18.
Standard Form 26: Award/Contract
Standard Form 26, Award/Contract is the form used by the federal government to award a contract, usually as a result of a Request for Quotation.
In general, this form is similar to Standard Form 33, although it requires additional certification information.
Part 4: How to Write the Proposal
It doesn’t have to be that way. Preparing a response to a government procurement request or invitation is an important task, not necessarily a daunting one. It should be approached with diligence and professionalism.
Writing a successful proposal is about doing your homework, preparing and responding clearly and appropriately, aligning your proposal with the government’s needs and articulating what makes you the best solution provider. These elements are critical to successful proposal writing.
Preparation is key…
If you are going to respond to a government RFP or other type of procurement request, you must be prepared, or you will likely just be wasting your time. The reality is, if you do not comply with all requirements in the solicitation, your proposal may be deemed “nonresponsive.”
Carefully read the solicitation, including all applicable schedules, clauses and attachments. This is important. The solicitation is designed to provide prospective bidders with all of the information needed to write a successful proposal. The agency that prepared the solicitation expects you to read and follow it carefully.
Also, make sure you review and understand the regulations (FAR Parts) governing the specific type of solicitation you plan to respond to. Some of the regulatory references relevant to a solicitation and the proposal process are highlighted in this slide. If possible, assemble a team to review and prepare the proposal.
Keep in mind, these are only some references. Other regulatory or policy guidance may be applicable to the specific procurement you are considering. Talk with a contracting officer, PTAC or other counselor for more assistance. Some PTACs and SBDCs offer training on how to prepare and submit proposals. Consider taking such training.
Respond Appropriately
Responding appropriately to a solicitation follows from reading and understanding the government’s request. Solicitations are usually very specific and follow a uniform contract format. It is important that you respond, as you are asked – answering all questions, providing all information and following all schedules in the order, time-frame and structure requested.
Eliminate any guesswork by ensuring that each response is appropriately identified so the reviewer can readily recognize the section of the RFP which is being addressed.
If a small business does not comply with all of the requirements in a solicitation, it may be determined to be non-responsive. This may sound like common sense and it is. But, you would be surprised to learn how many proposals submitted to the government that are received after the due-date and that do not respond to what was asked for, or requested. Responding appropriately is important!
Align your Proposal with the Government’s Needs
A good proposal will clearly articulate how the bidder can solve the problem or fill the need outlined in the government’s solicitation. This again, follows from understanding the nature of the procurement request.
Understanding the government’s needs is important. Even more important is how your firm plans to execute or deliver an appropriate solution. It is, after all about convincing a government review panel that your proposal solves a specific problem or need and is the best fit.
A proposal may look good and read well, but if it is not clearly aligned with fulfilling the government’s needs, it will likely fall behind other more substantive, solution focused proposals. Don’t get caught up in telling a great story about your company, focusing too much on “we can do the work.” What really matters is substantiating how you can do the specific work that is needed.
Clearly articulate what makes you the best solution.
A typical government solicitation requires the bidder to provide a great deal of information. The key is pulling it all together in a proposal package that clearly describes why your company offers the best solution and is the best fit to perform the work. Think capture management……. There is no magic bullet. It comes down to doing a lot of things right.
It’s about making a compelling case for your firm as the best solution by:
- Understanding the solicitation and responding appropriately
- Clearly demonstrating how your firm can best fulfill the government’s need
- Offering pricing that is fair and competitive
- Making sure your proposal is well-written and error free
- Showing evidence of success through past performance
- Interweaving an amazing story throughout all parts of the proposal, including the executive summary
It is also highly recommended that you have reviewers outside of the proposal writers to review the draft and final product.
What to avoid…
Sometimes learning from the mistakes of others provides the best lessons.
With regards to solid proposal preparation, some key things to avoid include:
- Not fully understanding the solicitation and governing regulations
- Submitting an incomplete or late submission; not providing specificity or focus
- Highlighting too much fluff and not enough substance, not understanding best value considerations
- Unrealistic pricing
- Failure to address evaluation factors
- Errors in the submission
If you aren’t selected for a contract, consider asking for a debriefing to learn where you may have gone wrong and what you can do to improve your future proposals. Done in a professional manner, this can be a way to show contracting staff of your willingness to improve and to be more responsive to the government’s needs.
Part 5: Costs and Pricing
First, the government’s perspective. Federal contracting officers are responsible for ensuring that government agencies purchase supplies and services from responsible sources at fair and reasonable prices. As such and to accomplish this, most contracting officers and agency buyers conduct considerable market research to better understand markets and pricing.
A contractor will likely have a related, but different perspective. A small firm wanting to do business with the government is responsible for developing a contract pricing strategy that is reasonable, competitive, but profitable. The typical contract bidder wants to make as much as possible in profit, but at the same time be competitive and win the bid.
As such, with contracting officers doing considerable market research and a high number of firms competing for federal contracts, pricing is an important variable. A variable that can make or break your success in federal contract markets. A business must be aware of historical and current pricing trends, be thoughtful in its pricing analysis, competitive and able to make a profit — if it wants to succeed in the federal contract space.
Negotiated Contracts vs. Sealed Bid Contracts
As discussed in the earlier section, proposal preparation, there are two fundamental contract categories: negotiated contracts and sealed bid contracts. The distinction between the two is important.
The FAR states that any contract awarded using other than sealed bidding procedures is considered a negotiated contract. Procedures for contracting by sealed bidding require the government to evaluate bids without discussions and award to the responsible bidder whose bid, conforming to the invitation for bids, will be most advantageous to the government considering only price and price related factors. Negotiations are not permitted prior to the contract award.
Procedures for contracting by negotiation permit negotiations prior to contract award. However, a solicitation under procedures for contracting by negotiation may or may not actually include negotiations. For example, the instructions to offerors may include the provision, the “Government intends to evaluate proposals and award without discussions.” When that provision is used, actual negotiations are not permitted unless the contracting officer determines in writing that they are necessary.
The pricing you propose in response to a government solicitation will be influenced by your ability to negotiate or not negotiate.
Pricing Approach
The pricing approach used by bidders for products and services being procured, besides following specific contract rules, is pretty typical, but unique to the business doing the pricing. That is, individual business costs and other considerations are factored into pricing formulas that are typical or generally used.
For instance, with regards to product pricing, a firm would typically consider and add material costs, plus labor costs, plus estimated overhead expenses, plus a profit margin to arrive at a price it would propose or charge for the product being delivered.
Regarding the pricing of a service, a firm would typically consider and add estimated hourly overhead expenses, plus hourly wages, plus a profit margin to arrive at a price it would propose or charge. This type of pricing will require becoming aware of Department of Labor wage rate agreements.
It is important to point out, that some government solicitations and contracts are very unique regarding costs and pricing and specific cost and pricing requirements may apply. Carefully review all government requirements.
Best Value/Lowest Price
It is also important to highlight the difference between “best value” procurements and lowest price, technically acceptable procurements.
“Best Value” is a process used to select the most advantageous offer by evaluating and comparing factors in addition to cost or price. It allows the contracting officer flexibility in selection through tradeoffs which the agency makes between the cost and non-cost evaluation factors with the intent of making an award to the contractor — who will give the government the best value for its money.
Regarding lowest price technically acceptable, this is a procurement process that is appropriate when best value is expected to result from the selection of a technically acceptable proposal with the lowest evaluated price. In other word, the contract award will be made on the basis of the lowest evaluated price of proposals meeting or exceeding the acceptability standards for non- cost factors.
Important Pricing Considerations
Contract pricing is a critical component in developing a strategy to win federal contracts. A successful pricing strategy will:
- Learn from past contracts – review pricing history
- Consider all costs — even special requirements
- Factor best value considerations
- Include bidding costs
- Overhead expenses and profit
Relationships and Learning from Others
Knowledge is everything. You don’t know what you don’t know. A business can waste a lot of time and expend unnecessary resources if it doesn’t understand how to play in the federal contracting arena.
Learn from the wisdom of others. Others, who have seasoned knowledge and experience in federal contracting. Network, ask questions and cultivate relationships. Engage knowledgeable people who can help guide you through the challenging aspects of responding to procurement solicitations and trying to win federal contracts.
Truly successful business people don’t necessarily have a mountain of contacts whose names they barely know and who are listed in some electronic file. Rather, they have a carefully developed and cultivated portfolio of relationships.
Building solid relationships of experienced contracting professionals is good business.