How To Analyze Your Proposal Cost And Estimates?

By Author: Mark Twain
Total Articles: 36
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Your company wins contracts through bidding and it has been happening for a while now. However, have you ever thought of forensic analysis of the cost estimated added to your proposal cost estimates? Are you aware of the benefits of doing this cost analysis? Do you want to know the way to improve your approach for creating proposal cost estimates that aligns with your company’s bottom line?
Any step that you take to increase the likelihood of winning a contract and successfully executing the scope of work will help you and your customers in the long run. As you approach a proposal consulting firm and want them to work as per the best rfp proposal template, you should also be careful about how the cost estimates are happening. After all, it all narrows down to your bidding price.
Here are two ways in which you can perform an analysis:
You might win a contract on a certain bidding price. However, later your find out that the cost of the project is more than the estimated bidding price. Why is that happening? It is time to find out ...
... the root cause of the same. What are the reasons for this to happen? Is it a highly technical risk? Is it schedule driven? Or is it resource driven.
The winning rates are lower than what you expect. So, why are you loosing over your competitors? Was it the solution your offer? or the pricing? Is it the quality of the cost volume submission or basis of estimate? It is time to find a common thread for these loses.
Granted that there are various other reasons that the contract was awarded to someone else, and there is nothing to be disheartened about because it is a part of the process. Here, the analysis will help you note down the reasons behind your loss so you can put your bidding in a better way for the next project.
Ideally, you should start with analysis facts and data. First of all, you need objective evidence you can use to determine what actions can help to improve the quality of proposal submissions. Some of the other factors to measure are:
Understanding the common RFP requirements.
The proposal submission is completing on time.
Assessing the kind of estimating methodologies used.
The narrative content
Verify the top-down and bottom-up cost estimate traceability.
Know what are the data driven cost and why do they matter. Once this analysis is done, you will find yourself at a better position to work on an RFP proposal template.
For more information, take our proposal consulting once.
Mark Twain is Author of this article.For further details about proposal consulting firms Please visit our website.