The shock of losing a contract to a competitor is something no company will forget. After witnessing a number of companies unseeded by competitors, we have come to learn that there is nothing shocking about it at all. In fact, many unseeded incumbents have sealed their fate long before the proposal was submitted. We have seen it so often that we have termed it incumbentitis. Should Miriam-Webster be interested in adding this term to the dictionary, we would define it as “the incorrect assumption that no one else can do what you doy which can result in an inflated sense of self-worth that casts a shadow on discernable competitors and muddles one’s own competitive advantage.”
Does this sound familiar? Consider the following: Have you ever felt that your customer could not possible execute a certain program without your knowledge and your people? If so, you may have incumbentitis. If you choose to forgo the full capture and proposal process due to the fact that you are a current contract holder, you may have incumbentitis. If you have read the requirements for a recompete and thought, “This isn’t actually what they want,” know that you are experiencing incumbentitis. But, as with any syndrome, there are ways to alleviate this and ensure that your company puts together a competitive proposal that exceeds the requirements and demonstrates an unparalleled knowledge of the customer. Here are the six things you need to remember:
The requirements and needs of the customer are regularly changing. You can be certain that the problem you were originally tasked to support has evolved. Take the time to understand the needs of your customer and don’t wait until the recompete to do this. If you make a concerted effort to regularly ask how you can help your customer, what their needs are, where they face challenges, and how you can help, they will automatically see you as a company who is most interested in advancing their mission. Either train your billable staff to manage this dialogue or make sure your business development staff stays engaged with the client throughout the contract.
The likelihood that you are the only company who can provide this specific service is slim. What works in your favor is that you know the customer, and you are able to demonstrate how your offering considers their needs and environment. Build this knowledge into your win themes and discriminators and make sure this message is clear in your proposal response.
Consider the fact that your customer’s needs have changed, and the environment in which they operate may have changed. As a result, your solution should change as well.
This exercise will highlight any areas of non-compliance and will quickly identify areas where you have offered solutions that are not asked for as part of the requirements. One of the biggest pitfalls we see for incumbent contractors is describing the current work on the program versus answering what is in the RFP. Use the RFP as your guide to develop your solution and your current work to substantiate your approach. Finally, an independent reviewer is also more likely to say, “so what?” and challenge your team to dive deeper.
Your competitors are likely speaking with your staff now, hoping to poach one or more of your key staff to sign with them. Contingent offer letters are a common practice for companies looking to steal away key personnel. Also, many times the government is loyal to the staff and not to the company – ultimately your resources will do what’s in their best interest unless you present some meaningful value to them as a company. Don’t wait until the re-compete to offer raises, awards, or praise. Do it now.
Tackle any price-related concerns early on by convincing your customer to procure these services as a best value tradeoff. You can further influence the opportunity by demonstrating certain requirements, such as certifications or prime experience within the agency, that will narrow the competitive landscape. From there, you will need to ensure the technical accuracy of your proposed solution and highlight the strengths of your team. Put in place a total compensation plan that describes the benefits you provide your staff and accurately showcases the importance of corporate culture.
Follow these suggestions and you will be sure to positively impact your evaluation score. And remember, day one of contract award is the same day you should begin positioning yourself for the recompete.