 Great photo by Andrea Piacquadio. RFPs—that is, Requests for Proposals—come in all shapes and sizes. Broadly, there are the ubiquitous ones that populate the world of government services contracting. There are plenty of private-sector RFPs out there, too.
In this article, we’re going to address the tipping point that must inform all of your RFP pursuits: the notorious “go/no-go decision.” We’re looking out for your best interests here, trust us. All-American competition A little background first. Why would a company (or the government) issue an RFP? The bigger question could be: Why wouldn’t they? Think about it. If you’re an entity that needs to spend money on services (or products, but we’ll focus on the former here), it’s entirely safe to assume that 1) you want the best possible services at 2) the lowest possible price. And what’s fairer, what’s more American, than level-playing-field competition? So. You issue an RFP. And you let all these suitors compete against each other. You get exactly what you’d wanted. It’s a beautiful thing. Or is it? The race to the bottom Let’s get real jaded, real quick. How well does the government do things, compared to private industry? By and large, not nearly as well. There’s no profit motivation. There’s no “Government 2” that they’re competing against. There’s a baked-in complacency and a literal ability to print more money if they need it. This shows in their work. Think of all the shoddy government services you’ve had to suffer through—IRS, DMV, U.S. Postal Service, Amtrak, you name it. Think of how many times you’ve said, “If only Amazon were running this!” And the crazy thing is, tons of these shoddy government services are actually provided by private-sector contractors! Why? Because they came in with the lowest bid. We’re over-simplifying here—there are other ways that the government procures things, and even in the private sector, there are SLAs or “service-level agreements” which stipulate a minimum required level of performance—but, as we’d intimated, nice and jaded, RFPs often represent a race to the bottom. Cheapest possible—and just passable. Now pivot this scenario to your business. Would you want to willingly join in, in this death spiral? To RFP or not to RFP The upside, for you, of competing on an RFP, is that it’s typically a pretty big contract. And it’s all or nothing. You either win it, or you don’t. And either way, you’re putting in a ton of work. Hmmm. This gets to the very core of the go/no-go decision. We were told, years ago, about an NFL coach who had a plaque in his office. It read: “Winning isn’t everything. It’s the only thing, Coming in second is un-American.” Yowch. Painful. Brutal. But refreshingly similar to your RFP go/no-go decision. It boils down to this: Only respond if you can, and will, crush it. Partial measures are a total waste of time; expend that energy on other biz-dev. Assess your capabilities and those of your likeliest competitors. Can you crush the competition? If you can almost crush them, what would it take to push you over the top? Here’s a little anecdote for you. We were recently invited to compete on an RFP for a slate of marketing services. We could see, right away, that it wasn’t a great fit. We knew we could crush a certain part of what this company was requesting, but there were other parts that weren’t our specialty. We were just about to pass on this one when--hmmm—we learned, through the grapevine, that a few other companies, which we know and have worked with before, were also invited to respond to this exact same RFP. Know where this is going? Imagine where it went? Of course. We reached out to those other entities, and said, “Let’s consolidate!” And that’s exactly what happened. Working with the others, we created a veritable Dream Team… and crushed the RFP. By the way, there are interesting and creative ways to craft the actual RFP response itself, to help you win it, which go beyond the scope of this article. We’d love to help you in this realm. Contact us and let’s talk.
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