Well it is actually, but equally so for Project based organizations it is also very much a Project or Program Management activity and the PMO within the project integration management organization needs to be fully engaged with the Bid and Proposal Management process.
I’m not just talking about the bid manager waltzing up to the person in charge of projects when the bid is all but complete and saying.
“This is the project, this is the budget we’ve allowed and this is the schedule we’ve thrown together, what do you think”
“Oh and by the way I have a review on this with the CEO in 15 minutes, so hurry”
I’m talking about a structured Bid Management process, that forms part of your integrated project management framework that considers the project management aspects of a bid alongside the need to develop a compelling and winning proposal.
I’m sure you’ve all seen the project management diagram that depicts project time versus our ability to influence a project’s outcome, so it only stands to reason that when your bid management or marketing department are responsible for handing over some or all of; a contract, specification, statement of requirements, budget and schedule to the incumbent project team, the likelihood of project success has already largely been set in motion, because if those documents aren’t based on your organization’s actual capability for delivering projects or are poorly developed, you’re in trouble.
Our Scope Management Package is focussed on clearly defining, documenting and controlling project sope, to learn more – CLICK HERE
A solid Bid Management process should contain the following to ensure project success (I’ve left out the marketing aspects on purpose);
- A review process of the bid documents to ascertain key scope, cost, schedule and quality requirements, ultimately identifying key risks plus cost and schedule drivers.
- A risk assessment to reduce risks pre-contract and to allow residual risks and constraints to be accounted for in the estimate and schedule.
- An estimating process based on actual output metrics and based on a project specific Work Breakdown Structure and Scope Definition. It is up to the CEO to decide what the offer price will be, based on a realistic estimate of cost and intel on the likely winning price.
- A schedule and project execution plan developed by, or at least with significant input from your PMO.
- Vendor Request for Quotations (RFQ) for major purchases based on actual (not generic) contract and project requirements.
- Draft contract review highlighting issues, risks and unacceptable contract requirements by your commercial department.
- A review and approval process with input from subject matter experts and sign off from relevant Functional Managers or Team Leaders, prior to the pricing discussion with the CEO.
Our Scope Management Package is focussed on clearly defining, documenting and controlling project sope, to learn more - CLICK HERE