If you didn’t get, or haven’t read, last week’s Washington Business Journal you didn’t read about the increase in bid protests. It seems that what was once a big no-no for contractors is now an acceptable way of winning business. In fact, some quick thinking opportunists are already positioning themselves to take advantage of the new protest industry. Seems that a DC-based law firm has a seminar to offer; How To Keep The Deals You Win And Get The Ones You Lose.I believe this is a desperate attempt to first, get business in financially tuff times and second, get unearned business. Unearned business, business that someone else did all the work to win. I have no doubt that there are legitimate protests but turning the process into a BD tool is only a temporary solution. New contracting rules, increased use of A-76 justifications, few contracts, more competition and the potential for a taxpayer revolt against government waste will just exacerbate the problem. So what do you do?
The answer isn’t in trying to face tomorrow with a business as usual attitude or try to survive by protesting other people’s wins. Protect yourself against protest by providing the review team with a proposal that can be used to substantiate and defend the award decision. Differentiate yourself in real, unambiguous terms. What is your unique selling position? What separates you from all the column fodder? If you and all of your employees don’t know the answers that pass the realism test it’s time to go down the pyramid with a chainsaw starting at the top. Transform your organization into one that can be differentiated. Robert Epstein, co-founder of Sybase, said “If you could get all of the people in your organization rowing in the same direction, you could dominate any industry, any market against any competition.”
Don’t be reduced to column fodder, don’t rely on bid protests for survival:
Instill your values
Make sure everyone knows how they contribute to corporate health
Shorten decision time
Streamline processes and procedures
Know your business, know your competition and know your customers
Build business because of business.
Monday, March 23, 2009
Bid Protest As A BD Tool?
Tuesday, March 17, 2009
Do You Speak Davis Bacon?
Yesterday’s Wall Street Journal (March 16 Page 4) published an article titled Labor-Backed Contract Rules Advance, warning the contracting community that the Obama administration is going to strengthen, or more stringently enforce, the Davis Bacon and Buy America Acts. I know this doesn’t affect many of you now but part way through the second column we get a glimpse of the frightening prospect that “the rules could surface in a variety of bills involving federal funding…”
I know that this is primarily aimed at construction contracts, for now, but this administration has shown a willingness to alter the procurement regulations in ways hostile to the contractor community. In the not too distant future OMB will work with DOD, NASA, GSA, OPM to strengthen contract oversight, end sole source and cost-plus contracts and maximize competition in general.
A-76 justifications will return as a way of life. Agencies will have to consider whether new contracts can be performed by governments at a lower cost. Obama recently stated that contractors may be performing governmental functions. John Gage, president of the American Federation of Government Employees, said "We hope this is the end of the era of privatization …” Current contracts will be reviewed to determine if they can be performed by government personnel.
There is no doubt that there will be nothing usual with business as usual. Now is the time to protect your customer base. I suggest you consider the following:
1. Routinely meet with key customers (technical and contracts) to understand their point of view and develop a friendly relationship; all customers are key, if they’re not quite wasting your time and money on them.
2. Never pass up an opportunity to demonstrate your value to the customer; develop your owned earned value system and use an independent source to verify that you customer recognizes you performance and benefit.
3. Squeeze every non-value added cent and second from your internal processes and procedures.
4. Make it someone’s responsibility to formally or informally lobby congress on issues affecting your business, your markets and your ability to compete. Keep employees informed of issues that may jeopardize their job and ask that they contact their representatives.
5. If your business depends on hard goods determine the non-US content at every indenture level and develop a second or third source list.
I’m sure you’ll think of additional items. The point is that you need to take a more active role in your future.
Posts
