News & Knowledge Center

Can you afford to chase premium price? Maybe.

Analysis shows the risk is worth the reward

When the government awards a contract to other than the lowest priced offeror, it pays a price premium to make that award. How much price premium the government will pay is left to the judgment of the selecting official. This amount varies by type of service or product being procured, details of each solicitation, and experience of the source selection official. In 1999, the price premium in a GAO study averaged about 7%. In 2010, the price premium in another GAO study averaged about 5%. Today, in the middle of the sequestration battle, the price premium is probably less than that; however, it’s difficult to generalize because the price premium can be unique to individual procurements. Here’s what we learned from the GAO studies and how you can apply this to your capture strategy. GAO studies In October 2010, GAO published a report, Enhanced Training Could Strengthen DOD’s Best Value...

Continue reading...

Is it always necessary to create graphics first? Ask the Proposal Doctor

Dear Proposal Doctor, My capture manager is insisting that we complete a big stack of graphics before we write any proposal text. We have a decent amount of time for this proposal, more than we usually get. But, my writers are worried about how long the graphics process will take and the compressed writing schedule that will surely follow. Is it always necessary to create graphics first? Where did this rule come from? How can I make it work with a team that does not really think visually? I understand the capture manager's point of view, but I also see where the writers are coming from. Please help. -Stuck in the Middle Dear Stuck, I am so glad you asked this question because it goes to a tension at the heart of our profession. Everyone wants the universal rule or the “best practice” (not my favorite term) that applies to...

Continue reading...