The following content by PROPRICER originally appeared on Federal News Network.
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The following content by PROPRICER originally appeared on Federal News Network.
When agencies look to upgrade their business processes, the first thing they tend to do is turn to Silicon Valley, to artificial intelligence, to blockchain, and any number of other emerging technologies.
So why are their pricing units still using Excel when better commercial off-the-shelf technologies exist to support their mission?
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The following content by PROPRICER originally appeared on Federal News Network.
Federal agencies are increasingly turning to commercial off-the-shelf IT solutions as technology outpaces government’s limited IT resources. But being notoriously risk-averse, agencies tend to put off making this decision as long as possible, falling prey to the sunk-cost fallacy and a pervasive fear of change. The Department of Veterans Affairs’ electronic health record system, VistA, is one major example from the past few years.
In most cases, an agency’s pricing system — or lack thereof – is another.
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A Better Way to Price and Analyze Cost Proposals for Federal Contracts
If you’ve prepared a response to a government RFP, you are aware of the struggles that come with the process. Developing and managing cost volume proposals can be long and tedious; however it is an absolute necessity to the company’s lifeblood. Estimating and pricing teams must work together to ensure that the company wins the business, ultimately helping to stay in business.
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The following content by PROPRICER originally appeared on Federal News Network.
Ask any contracting professional, whether private or public sector, what their biggest complaint is about the federal procurement process, and they’ll tell you the same thing: it takes too long. A recent survey found a growing desire for innovation in procurement, and the officials who push for it, like Soraya Correa, the Homeland Security Department chief procurement officer and pioneer of the Procurement Innovation Lab, can quickly become rockstars in the field.
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Earlier this year, Secretary James Mattis released a new National Defense Strategy (pdf) for the first time in 10 years. One of the major goals of the new strategy is to drastically reduce acquisition timelines and cut the time required to award a contract by half. The initiative was echoed by Director of Defense Pricing Shay Assad at this year’s Government Contract Pricing Summit: “what we are interested in is changing [the award process] from 400-500 days to 30.”
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The U.S. Government Accountability Office (GAO) developed the GAO Cost Estimating and Assessment Guide to establish a consistent methodology based on best practices for use across the federal government for developing, managing, and evaluating capital program cost estimates.
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Like most government agencies, you look for ways to reduce the time and effort required to review contractor bids, but it’s a challenge. Contractors submit bids with inconsistent formatting, formula errors, missing calculations, and other issues that require you to double – and sometimes triple – check the numbers, which drains resources and takes too long.
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