Wednesday, February 14, 2018

When Should Government Contractors Invest in a Business Capture Solution?

 Executive Summary

By Fred Hargrove and Brian Giblin

Over the past 20 years, the federal government’s procurement budget has tripled. Over the same
period, the average contract size has decreased by 40 percent. In an environment where the total market is growing but the number of proposals required is growing even faster, government
contractors must focus not only on efficiency in responding to opportunities but also in
selecting which opportunities to respond to. This industry trend is compounded by challenges and
requirements for increased:

Transparency and accountability
Conflicts of interest
Use of multiple award contracts
Attention to small business requirements

Additionally, the federal government has shifted more contract dollars to multiple award contracts,
such as government-wide acquisition contracts (GWACs) and indefinite delivery/indefinite
quantity (IDIQ) contracts.

Government Contractor’s Response

To respond to these industry trends and to meet the challenges of their own growth,
government contractors often embark on internal transformation projects and implement new
processes and systems that will give them the flexibility to sustain future growth. The business
development process is a key area of improvement for growing government contractors.
When a company has more than one location, grows to a staff of 150 or more, and/
or generates more than $30 million in revenue, the company must re-evaluate its strategies
and processes and adopt a more formal approach to business development, capture, and
proposal management. While ad hoc business development processes may be sufficient in
a company’s early stages, key players in the government contracting sector eventually reach
critical mass when informal processes simply are not effective at competing in the marketplace. As
part of a more structured approach, companies need to leverage an automated solution that
supports critical components in the business development process.

Findings and Conclusions

According to a survey conducted by MorganFranklin, government contractors are looking for a solution that supports Opportunity Management, Bid Pursuit Evaluation, Capture Strategy, and Proposal Generation with the end goal being increased revenues, improved win rate, and reduced costs. In the second survey by MorganFranklin of Deltek GovWin CRM* reported year-over-year revenue increases ranging from 25 to 75 percent, as well as improved performance management, improved efficiency, and improved win rate.

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