Cost proposals are often times the deciding factor in determining the winner – “It all comes down to price.” So why are cost volumes typically finished at the end of the proposal process and treated as an afterthought?
Many companies treat cost proposals as an administrative task that requires no creativity. They figure out what they need to price, assemble the spreadsheet, and then cut and paste some language from other proposals to “justify” the numbers.
But this is a flawed way of thinking. Cost proposals present a great opportunity to convince the Government that yours is the only realistic and reasonable pricing. There’s a lot of nuance when it comes to realism vs. reasonableness price evaluations that the Government performs, but we’re talking generalities here.
Cost proposals need to have win themes and ghost your competition by describing how you derive your rates. For example, is this a difficult market in which to find qualified job candidates? Are you paying people for specific and unusual skills that the Government requires for this job? Do not assume that the person evaluating your proposal knows the ins and outs of the program. Spell it all out.
For cost volumes, there are many different creative ways to explaining different concepts to your Government customer. But to succeed, you need more than one green team that’s happening towards the end of the whole proposal lifecycle. You must treat your cost like the technical volumes that follow the same lifecycle as your technical proposal.
OST likes to have a cost proposal pink team, a cost proposal red team, and a cost proposal gold team. Read aloud reviews can make sure the whole proposal to make sure it’s perfect. Cost people will notice your errors because they pay attention to detail.
My challenge to you: during your next proposal, think of your cost volume as a key piece of the proposal that you track and review thoroughly from the beginning of the process. Don’t put it off till the very end.
If you need help with cost proposals, call us at OST Global Solutions. We will make sure that you start on time, finish on time, and do a great job.
OST Global Solutions is a professional business development consulting firm. We provide capture and proposal teams to develop winning proposals. Or we can provide consultants on a case-by-case basis to fill gaps on your business development team, including running your color team reviews. Our services consist of capture management, proposal management, orals coaching, proposal writing, graphics support, editing, desktop publishing, and cost volume development.
Reach out to us to discuss how we can help you develop a winning proposal.
service@ostglobalsolutions.com
Upcoming Bid & Proposal Academy Classes
Blueprint for Federal Business Development: Processes, Tools, & AI Use Cases
OST Global Solutions Virtual Classroom MD, United StatesDo you want to know how to find more opportunities, run captures, write winning proposals, and secure multimillion-dollar contracts to grow your company in the Federal market? Over the course […]
Master AI to Enhance BD, Capture, & Proposal Processes – Updated to Include the Latest AI Developments
OST Global Solutions Virtual Classroom MD, United StatesAre you ready to enhance your bid flow, improve your Pwin, cut down the time it takes to do most BD tasks, improve decision-making, and reduce proposal risk by ensuring your submissions are compliant and compelling? This course is specially designed for BD professionals in Government contracting firms seeking to harness the power of AI in their operations. Over three comprehensive sessions, you will gain the knowledge and tools to transform your BD strategies and execution. Learn More
Winning Government Cost Proposals Including AI Essentials
OST Global Solutions Virtual Classroom MD, United StatesDeveloping a Winning Cost Volume course helps you increase your federal contract win probability. We focus on Government contract evaluation, pricing fundamentals such as cost buildup and cost volume elements, price strategy, developing basis of estimate (BOE), coming up with assumptions, Work Breakdown Structure (WBS), cost volume narrative, winning in lowest price technically acceptable proposals (LPTA), and much more.
