7 Ways to mitigate proposal business case review risks

At the 2011 APMP International Conference, Lohfeld Consulting Group’s Managing Director Brenda Crist presented an informative session on mitigating proposal risks. Here are Brenda’s identified Proposal Business Case Review Risks and recommended Mitigation Strategies:

  1. Business case in not consistent with the technical and management solution. Immediately correct the inconsistencies in both proposals.
  2. Assumptions are not documented. Define all known assumptions that could impact the price or operational delivery.
  3. Company is unable to meet the terms and conditions specified by the client. Document what terms and conditions you are unable to meet and why, if the customer is open, renegotiate the terms and conditions before submitting the proposal. If you are unable to meet the terms and conditions consider not bidding.
  4. Business case is too high risk for the company to support. Consider pulling the bid.
  5. Resulting profit margin is too high or low. Fix the profit margin so your bid is compelling and still makes sufficient profit to meet company goals.
  6. Document does not present a clear case for selecting your company’s bid. Provide a narrative explaining why your company offers the lowest price or best value. Define all the value-added terms or options that your company provides.
  7. Errors in the business case. Immediately correct the error(s).