Developing Superior Proposals

This chapter provides some recommendations for government agencies who seek lower prices and best value for their environmental restoration funds. On many government contracts, the risk pendulum has swung too far. These government agencies are receiving an increasing number of Contractor “No Bids” or single bidder price proposals that exceed the Independent Government Estimate (IGE). This chapter is intended to improve the understanding of Government acquisition staff regarding the Contractor’s perception of risk, thus helping them take actions to obtain more competitive bids on their programs. Most Government agencies want to be fair and reasonable. Some have reached out to industry associations consisting of Contractors for process improvement suggestions. The Contractor’s challenges include lack of awareness of client execution plan, limited pre-RFP activities, difficulty defining and estimating project scope, lack of time to prepare a proposal, lack of time for competitive bid process, obtaining internal Risk Board approval, and providing a competitive price. These are elucidated in the study. Furthermore, it provides examples of RFP language that shifts legal risk to the Contractor. It details some common negative impacts that are traceable to performance-based scopes of work that are not properly defined. Finally, it provides the Government agencies with insights into the Contractor’s perception of risk to assist Government improve the prices and value they obtain on fixed-price, performance-based MACs.