Aug 2024 - Incumbent Position
As an incumbent, business development (BD) activities during the contract period are just as crucial, if not more so, than the efforts made when responding to a Request for Proposal (RFP). These ongoing BD efforts are vital for two primary reasons: they help maximize the profitability of the current contract and prepare the company for a successful recompete. There are three main BD objectives for incumbent contracts: 1) achieving the business case goals set for the opportunity, 2) identifying and exploiting opportunities for contract growth, and 3) preparing effectively for the contract recompete.
To meet these objectives, it’s essential for program management and business development teams to work closely together. Here are four key collaboration activities between BD and program management that can help achieve these goals:
1. Periodic Bid-to-Actuals Reconciliation: Regularly compare the financial outcomes of the contract to the financial metrics outlined in the bid. This practice helps you understand the program’s nuances and assess the accuracy of your initial bid planning.
2. Planning for On-Contract Growth: Revisit the business case for on-contract growth that was developed during the capture process. Regularly update this plan to reflect the reality of the current contract performance.
3. Periodic Evaluation of Work Outside Scope: Collaborate to identify and assess any work that falls outside the original contract scope. If such work exists, develop a strategy to formalize it and ensure it is properly compensated by the customer.
4. Deliberate Preparation for the Recompete: Establish a clear action plan for addressing critical issues, identifying gaps to fill, and shaping the organization’s approach to the recompete. Incumbency provides valuable insights and opportunities that should be leveraged to position the organization as the preferred provider.
Effective communication and collaboration between BD and program management are key to successfully navigating these activities and achieving long-term success in incumbent contracts.
