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Bid process

Bidding as the incumbent

How do you bid in a re-tender if you’re the incumbent? Do you take it is a given that you’ll retain the contract, as your firm’s been successful with the client? Do you assume the client knows a defined amount about your firm, and focus on anything that is new or you haven’t previously offered them? Or do you treat it as a new bid for a new client, not missing a beat in terms of research, preparation and what you can offer?

According to the APMP’s Body of Knowledge (BOK) “Complacency is the number-one reason incumbent contractors lose”; so your answer should be the third option – but there is still more to it than this. The BOK sets out three phases to winning as the incumbent:

  • Performing to win. Making sure performance is on track, soliciting customer feedback, capturing metrics, and identifying trends
  • Preparing to win. Capturing rebid with the vigour of new business, shaping acquisition and solicitation, and preparing price-to-win and the solution from the ground up
  • Proposing to win. Writing a compelling proposal aligned to evaluation criteria, bidding to the solicitation (not what you know), and not assuming that the evaluator knows your performance history”

The first phase is vital. You should plan for your recompete in plenty of time; after all, you know how long the contract is for, whether any extension discussions have happened, and therefore should be able to anticipate when the client will issue the retender. While you should be gathering client feedback throughout the contract anyway – via client review meetings, informal feedback, reporting/MI, your own performance metrics etc – you should be collating and reviewing this information as a bid team at least three to six months before the retender is due.

Create a feedback loop with those on the front line with the client

You shouldn’t rely on just client feedback however. The second phase, preparing to win, needs the bid team to create a feedback loop with those on the front line with the client – your Account Managers, Project Managers, and Service Delivery Managers to name a few. They are the people who are best-placed to gather intelligence (capture management) on:

  • Were any issues raised by the client that you overcame?
  • Did you demonstrate an improvement in performance during the contract?
  • Did you bring any added value innovations and improvements as a result of the contract?
  • Is anything new or coming down the tracks that is of importance to your client?
  • Are any competitors are talking to them, and how your client views this competition?
  • Are there are likely to be any cost constraints – or indeed larger budgets (we can but dream!) – for the new RFP?

This is all key information you can use to your advantage when recompeting – assisting with the development of your win themes and value propositions, and your price-to-win model.

The third phase is where complacency could really come into play. As the BOK states “The old adage ‘proposals are scored, not read’ might very well apply here.” The danger with being the incumbent is that you assume you’ve carried out the contract well, the client is happy and there’s no reason for them to change supplier – so you don’t need to change things up too much. On the flip side, you could also know too much – and risk bidding for the current contract, not the retendered RFP. 

Do not assume that the procurement evaluators know your business at all, as they may be completely independent to the client service side. As with any bid, you should answer the questions as written – not how you think they should be answered based on your current relationship – and ensuring you can achieve the highest scores against the evaluation criteria. You must be compliant, regardless of how well the client knows you, and how well you’ve performed (or think you’ve performed!) You should also challenge your business. Don’t simply continue how you have been working– what can you do differently this time around? Always ensure you are offering the best solution to the client and their future needs.

Throughout these three phases, one factor is key – leverage what you know, but don’t rely on it or take it for granted. The client won’t.