Differentiating on Best Value Bids

The government has many pricing evaluation models under which proposals are submitted. One that creates confusion is Best Value. The government may procure goods and services that the agency believes is the "best bang for the buck." It is very subjective.

The source selection framework is much like any other proposal submission where first, the government reviews the proposals for requirements and compliance. A proposal either moves on or is eliminated if it does not meet the basic requirements or is otherwise non-compliant. Important is that the evaluation is against the requirements.

Once the number of offers has been narrowed down, the second step of comparing proposals against each other. This is somewhat unique to Best Value evaluation as usually proposals are only compared to criteria, then pricing is evaluated. But in Best Value, what each party brings to the work is critical in the non-price factors. The agency looks at the strengths and weaknesses of each proposal to make a determination of which proposals will make the 'competitive range' grouping.

Competitive range is an important term because it is the range in pricing for those proposals that are deemed to provide non-pricing value to the government. It is set by the pricing in the proposals deemed to be compliant. Under this situation, being the highest or lowest bid is not advantageous unless you have a significant innovation or offering to differentiate your offer. The government uses this range to eliminate more offers and narrow the field.

From here, the government analyzes the trade-off in pricing versus non-pricing factors, discussing what is most advantageous. This is the most subjective part of the process. What is deemed to be advantageous? Are there innovations desired or efficiencies included that will alter the performance of the work from what was envisioned and specked by the government? Does the government want this?

As the offeror, your firm will likely propose certain cost-saving efficiencies in the proposal. Maybe it is use of technology that saves on meeting times or travel costs or maybe it is staffing with more knowledgeable personnel to do the work better and faster. It is very much industry and proposal specific, but here are some thoughts to consider when weaving these through the win themes and proposal technical approach:

• Is this really a value-adding activity or does it just sound like one? Can I quantify the savings?
• Does the government want an alternative approach? Are the existing processes so codified that there is no room for innovation?
• Do you have proof from other clients that your innovation is successful?
• How are you calling out your best value proposition to make it crystal clear that this is a positive differentiator your company is offering?
• Did you make it easy for the government to document and defend that your offer provides the best value? Is it defendable that your proposed services are differentiated from the others by what you are offering?

Bottom line: make sure your value-added offer is clear, documented, defendable, and wanted.

A successful differentiator will place your proposal squarely within the competitive range and onto award, without being the lowest price. This is important to keep profit margins on track and to maintain your labor rates across all clients. Most importantly, you will be able to win work that is fairly priced while providing value-added services for your client. Position yourself as the thought leader at the outset, then keep building on the ability to help the agency with improved operations.

Best Value is a great way to open a door to doing work that is impactful and worth doing. There will always be firms who price work to 'buy' the client, but if you have something special to offer and want to stand out, make sure you highlight it while still being complaint with the evaluation criteria and scope of work. You have the chance to differentiate and win work without being the lowest priced offer. Go for it.

If you want to see value-added personified, schedule a call with me at https://calendly.com/libby-coaching or email me at [email protected] . Win the work that will move your firm forward, not just take up time!