The Guidepost
BIDS & PROJECTS Standard version 2.3

Manage a Bid - Choose a Sub-Process

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introduction   initiate   manage risks   manage work   produce   close   assessment  




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Introductiontop

In principle Bidding is simple. It involves developing a solution to a requirement, producing a Proposal, and submitting it to the Customer or the End User. If the Proposal is accepted, then an agreement to do what the Proposal offers must be negotiated and agreed with the Customer or with the End User, and the Project can then be launched.

However, a Bid Manager has to handle two Projects: producing the Bid itself, and preparing for the Project to deliver the solution. This means that the Bid Team must:

  • qualify the opportunity and get approval to Bid
  • develop a scope, a Plan and a Budget for both the Bid Project and the Delivery Project
  • get the Bid Budget and Plan Authorised and the Project Budget and Plan agreed
  • confirm the availability of Resources for both Bid and Delivery Projects, and negotiate agreements with Suppliers
  • develop the solution
  • produce and get approval of the commercial offer
  • submit the Proposal.

Then if the Bid is successful, a Contract must be agreed with the Customer or End User, and the manager of the Delivery Project must be briefed as it is launched. Clearly this will all need careful management.

Initiate Bidtop

To prosper, an organisation needs a clear strategy, which has adaptation and change as key elements. Implementation of its strategy will include a continuing Programme of initiatives, each set up as a Project (see Project Based Management). In addition, if it is a commercial company, the organisation must focus its efforts on winning external business that fits its strategy, and can be delivered profitably while enhancing its reputation.

Identifying and shaping initiatives and opportunities is a key role for each Opportunity Manager, and the way this is done is the same for internal initiatives and external sales. This Sub-process describes how to prepare and turn each internal initiative and external opportunity into a successful Bid.

A Bid will take place in parallel with Bids for other opportunities and requirements, and with Projects for which commitments have already been made. So a Bid Project (and the ensuing Delivery Project) will be competing for Resources, and for management attention, with other Bids and Projects that are starting and already under way. If other parties are needed to contribute to the Bid, the Opportunity Manager will need to negotiate conditional agreements with them.

He/she will prepare and present the opportunity or initiative to a senior manager, who will decide whether it will meet the objectives of the strategy, is commercially attractive, and whether the company can meet the demands this Bid will place on the skills and understanding that are available. If the decision to Bid is positive, a Bid Executive, a Bid Board, and a Bid Manager will be appointed, and a Bid Team will be mobilised and briefed.

Capture and Manage Riskstop

There will be a variety of Risks associated with both a Bid Project and its Delivery Project. It is very important to identify these Risks, and plan carefully how to handle any that mature.

Manage Bid Worktop

To develop and deliver a winning Proposal will require a Budget and a Plan, which will be produced and submitted for Authorisation. The timescale for submitting the Bid will almost certainly be tight, and there will be many problems and questions to be resolved. An Authorised Plan is the basis for monitoring, and the Bid Manager will be expected to report to the Bid Board on the progress against the Plan, and to account for the expenditure of the Budget.

Produce and Submit Bidtop

Whether a Bid is to meet internal requirements or those of an external Customer, if it is to succeed, the Proposal must be completely sound. This applies not only to the details of the offer, but also to the basis on which it is made. This Sub-process describes how the solution, and the commercial offer, will be developed, proved, documented, and reviewed.

Before the Proposal is submitted it will be presented for Approval by senior management. They should be satisfied that the technical solution is feasible, that it has a proper commercial basis, that a thorough analysis of Risk has been made, and that the Resources needed will be available if the Proposal is accepted. Only then should it be Approved for submission.

Close Bidtop

If the Proposal is accepted, then an agreement for the work will be negotiated with the Customer or End User, the Bid File will be finalised and passed to the Project Executive, and the Delivery Project will be launched.

If the Proposal is not accepted, then the Bid File will be archived for future reference. In either case the Bid's outcome will be assessed and any lessons recorded. The Bid will be closed.

Post-bid Assessmenttop

Just as for any Project, when a Bid is ended, there will be conclusions to be drawn and lessons to be learned.

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