Increase your win probability on LPTA (lowest price technically acceptable) bids using this 4-step strategy that can enable winning without bidding the lowest price.
Remarks by Len Martinez, COO of XPRT, LLC inspired me to develop this approach when he participated in a panel discussion on pricing last year, sponsored by the Association of Proposal Management Professionals — National Capital Area.
The key to this strategy is to show that any lower priced bids are not technically acceptable, so that you win. To attempt to do this, insert an executive summary into the cost volume suggesting that all bidders should be required to meet specific acceptability criteria.
Developing those criteria requires four steps:
- IDENTIFY FEATURES
- IDENTIFY PROBLEMS
- IDENTIFY RESULTS
- IDENTIFY CRITERIA
STEP ONE: IDENTIFY FEATURES
List each feature of your solution.
Example: A feature of your solution might be your knowledge of implementing the solution in environments similar to the customer’s.
STEP TWO: IDENTIFY PROBLEMS
For each feature, describe the problem the government will have if they select a solution without that feature.
Example: By selecting a vendor who lacks knowledge of how to implement in the government’s environment, the government will risk schedule delays.
STEP THREE: IDENTIFY RESULTS
For each identified problem, identify the result that will be achieved by avoiding the problem.
Example: If the problem you avoid is a high risk of schedule delays, then the result is that you minimize schedule delay risk.
STEP FOUR: IDENTIFY CRITERIA
Create a two-column table of Suggested Technical Acceptability Criteria. In the left column, insert the results, reframed as criteria.
Example: If your knowledge of the environment enables you to minimize the risk of schedule delays, then make the criterion “Contractor should have sufficient knowledge of implementing the solution in similar environments to minimize any risk of schedule delays.”
In the right column, insert a brief explanation of how your solution meets the criterion. Explain, for example, your success delivering on time in similar environments.
Use this table in an executive summary in the cost volume and suggest using your criteria to assess technical acceptability.
If your Suggested Technical Acceptability Criteria resonate, and if the lower priced bidders fail to meet your criteria, you could win, in spite of not having the lowest price.