Overview of Capture & Proposal Management for PMI-Baltimore Chapter Michael Hackett March 15, 2012

1. Overview of Capture & Proposal ManagementforPMI-Baltimore ChapterMichael HackettMarch 15, 2012

2. Purpose • To provide an overview of: • Capture Management • Contracting processes with Dept of Defense • Proposal Management • To have PMI-Baltimore Chapter personnel better preparedto support their company with growth • Promote Project Management skills in Business Development Hope you learn something that can be immediately applied!

3. Agenda • Business Development Process • Capture Management • Your Company’s Growth? • BD-CMM Model • Capture Plans –Build a Story! • Proposal Process Overview • Proposal Writing • Closing Thoughts….. Code of Conduct: Feel free to ask questions that will help overall understanding of material.

4. Honeywell Technology Solutions Inc. OVER 50 YEARS PROVIDING QUALITY GOVERNMENT SERVICES Space, Networks & Communications Logistics Services Technical Services PROFILE HERITAGE • Wholly-owned subsidiary headquartered in Columbia, MD • ~ 6,000 employees • Over 100 locations: 21 countries, 33 states, the District of Columbia • More than 100 active contracts • Bendix Radio (1950) • Bendix Field Engineering Corporation (1961) • AlliedSignal Technical Services Corporation (1993) • Honeywell Technology Solutions Inc. (2000) • -Dimensions International Acquired (2007) Premier Provider of Solutions and Services!

5. Business Development Process Strategize Position Pursue Propose Negotiate Transition Marketing Team Sales/ Opportunity Team Proposal Team • Includes traditional sales and marketing • Acknowledges different benchmarks applicable based on process goals • Seeks common best practices Delivery Team

6. Business Acquisition Process - COMPLEX Identify Phase Qualified Phase Capture Phase Proposal Phase Post-Award Phase Assess the effectiveness of the process and the product following proposal delivery and notification of award, and communicate results for lessons learned. Identify specific targets of opportunity within approved markets as defined in the Strategic Plan. Assess the position of the customer, the competitors, and your company, and develop a preliminary win strategy. Refine the win strategy and develop a plan to capture the bid. Write proposal, Q&A, Past Performance, BAFO, and Orals. RFP Released -24 months -12 months -10 months The Capture Manager is responsible for winning the opportunity!

7. Typical GovernmentContracting Process Develop Acquisition Strategy and Plan 1 2 Approval and Funding 3 Establish Source Selection Authority Develop SOW 4 5 Conduct Market Research 6 Send Draft Documents 7 Conduct Bidders Conference 8 Release RFP Answer Company Questions 9 10 Receive Proposals and Evaluate Announce Award 11 Debrief with Companies 12 Contract Start-Up 13 14 Contract Performance 15 Contract Shutdown

8. How does your company plan for growth? • What processes does your company have to provide guidance on how to conduct BD? • Who is responsible for growth? • Do they have the authority to implement and obtain necessary resources for support? • Does the company have the infrastructure to support growth? • What incentive is there to support BD efforts?

9. Key Process Categories Customer Focus People Capabilities Themes Increasing Customer Value Improving Performance and Synergy Building Competencies and Teams Enhancing Systems and Processes Levels Key Process Areas (KPAs) 5 Optimizing • Innovation and Transformation Optimizing 4 Managed • Relationship Management • Enterprise Influence • Quantitative Process Management • High-Performance Teams • Business Develop Systems Integration • Infrastructure Management Managed 3 Defined • Solution Development • Organizational Tactics • Quality Management • Organizational Competencies Development • Business Develop-ment Processes • Support Systems Defined 2 Repeatable • Response Generation • Business Development Administration • Quality Control • Individual Skills Development • Sales/Capture Procedures • Work Environment Repeatable 1 Initial • Ad Hoc Initial Top-Level View of the BD-CMM Source: BD-Institute International www.bd-institute.org

10. 1. 1. Initial Initial Maturity Levels Maturity Levels Maturity Levels Maturity Levels 2. 2. Repeatable Repeatable 3. 3. Defined Defined 4. 4. Managed Managed Indicate Indicate Contain Contain 5. 5. Optimising Optimising Indicate Contain Process Process Capability Capability Areas where an Areas where an Key Process Areas (KPAs) Key Process Areas ( KPAs ) Key Process Areas ( Key Process Areas ( KPAs KPAs ) ) organization should focus organization should focus to improve its process. to improve its process. Achieve Organised by Achieve Achieve Organised by Organised by • • Commitment to Perform Commitment to Perform Common Features Common Features Common Features Common Features • • Ability to Perform Ability to Perform Goals Goals • • Activities Performed Activities Performed • • Measurement Measurement Address Address Contain Contain • • Verification Verification Contain Address Implementation/ Implementation/ institutionalization institutionalization • • Essential process Essential process Key Practices Key Practices Key Practices Key Practices elements elements • • Communicate widely Communicate widely Describe applicable principles applicable principles Describe Describe Activities or Activities or Infrastructure Infrastructure Components of the Model Source: BD-Institute International www.bd-institute.org

11. What is Capture Management? Capture Management is the process of winning an opportunity from identification through award and execution by: Understanding the client’s requirements and expectations Understanding the environmental and political conditions Developing management, technical, pricing and teaming strategies Positioning your company for winning Sharing lessons learned for future bids

12. Capture Management Can we win? How will we win? Strategic Thinking (Planning & Positioning) Tactical Thinking (Project and Proposal Mgmt) • Organization • Key Decision Makers • Politics • Hot Buttons • Problems • Buying History • Influence RFP Customer Capture Plan Tollgate Reviews Actions Budget • Competition • Teammates • Customer Intimacy • Past Performance • Technical Capability • Global Environment Competitive Landscape Proposal Your Company Process, Metrics, Deliverables, Innovations • Take all the information gathered and weave into Win Strategy Win Strategy

13. Elements of a Capture PlanExternal and Internal Analysis • Executive Summary • Opportunity Information and Assessment • Customer Intelligence and Communication • Teaming Analysis and Status • Competitor intelligence and Analysis • Your Company’s Competitive Strategy • Value Proposition and Solution • Key Personnel and Staffing • Pricing Strategy • Past Performance • Risk Management • Elevator Speech • Customer, schedule, deliverables • Org., decision makers, reqts, and hot buttons • Products/Services, past performance, relationship with customers, rates • SWOT Analysis • How does this position us? • What do we offer that is unique? • What expertise can we propose? • Price to Win? • PP to site and/or survey to CO? • What are the risks and what are we doing about it?

14. Win Strategy – a strategic assessment of what it will take to win a procurement and aplanfor how we can get there. Should address all key evaluation criteria. The strategy should provide an attractive solution for the customer that stands apart from the competition, neutralize strengths the competition may have, and come in at a very competitive price. • Discriminators – something unique that only we can offer; no one else can make the same claim. Government evaluators look for discriminators in proposals to help them justify their decision. Tests for a winning discriminator: • Is it important in the eyes of the customer? • Is it unique to your approach? • Is it credible and defensible for you and not for the competitor? • Ghosting – a way to sell ourselves and “unsell” the competition by alluding to competitors’ weaknesses and our strengths. By ghosting, we try to influence the customer’s opinion by countering the messages of competitors and highlighting our strengths. Win Strategies, Discriminators, Themes

15. Themes are specific messages that are communicated throughout the proposal. They are intended to substantially influence the customer to choose us over the competition. • Themes present a rationale for why we should WIN • Themes answer the question: “WHY SHOULD THE CUSTOMER PICK US?” “What makes us special?” “Why not the competition?” • Themes should represent a BENEFIT TO THE CUSTOMER • Example: The Right People, Right Time at the Right Price Themes… Why Should the Customer Select Us?

16. Build a Story! • Customer /Evaluators • What is the customer concerned about? • How are you going to resolve their problem or issues? • Why should they select your solution? • What are the risks of not selecting your solution? Company Management Plan linked to customers’ needs to include: -Corporate reachback for support -Team and Organization (Roles, Responsibilities, Authority, Lines of communication, etc..) -HR: Recruiting, Staffing and Retaining -Contracts and Subcontracts -Financial Business Mgmt -Procurement -Quality and Safety -Information Technology -Risk Mgmt -Technical Solution – Tech Volume -Past Performance and For Examples -Pricing Volume

17. Know your Competition!

18. Pursuit Team Organization: (Sample of Complex Proposal)

19. Sources of Capture and Proposal Management Training • Association of Proposal Management Professionals www.apmp.org • Shipley Associates www.shipleywins.com • Hy Silver and Associates www.hsilver.com • Capture Planning www.captureplanning.com • Business Development Institute International www.bd-institute.org • Lohfeld Consulting Group Inc. www.Lohfeldconsulting.com There are many others in the MD/DC/VA area!!

20. RFP / Proposal Phase Request for Proposal

21. Analyzing the RFP The typical RFP sections contain the following information: Schedule Sections A-H Contract Section I List of Documents, Exhibits, Attachments Section J Representatives and Instructions Sections K-M

22. Analyzing the RFP The typical RFP sections contain the following information: Section A:Solicitation/Contract Form (e.g., SF33). Customer, date of issue, date and location of delivery, solicitation number, and point of contact. Section B: Supplies or Services and Prices/Cost. Contract Line Items (CLINS) to be priced. Section C: Description/Specification/ Work Statement. Scope of work to be performed, standards of workmanship, and position qualifications. Section D: Packaging and Marking. Point of delivery.

23. Analyzing the RFP (Continued) Section E: Inspection and Acceptance. Quality Program requirements. Section F: Deliveries of Performance. Period and place of performance. Section G: Contract Administration Data. Section H:Special Contract Requirements. Organization conflict of interest, list of key personnel, cost reporting requirements (e.g., Cost/Schedule Status Report [C/SSR]), Notice of Service Contract Act (SCA) applicability, subcontracting plan, and transition data.

24. Analyzing the RFP (Continued) • Section I:Contract Clauses. • Section J: List of Attachments. Attachments can include SOW, Wage Determination, position descriptions, and Government-Furnished Equipment (GFE) lists. • Section K: Representations and Certifications. Representations, certifications, and other information. • Section L:Instructions, Conditions, and Notices to Offerors. Proposal preparation instructions, pre-proposal conference, bidders’ library information, security clearance requirements, and alternate proposal requirements. • Section M:Evaluation Factors for Award. Evaluation criteria. Authors should be familiar with entire RFP, especially Sections L, M, and the SOW.You have to read the RFP carefully because some requirements may need to be addressed in both the Technical and Management volumes and as a separate plan.

25. Sample 30-Day Sample 45-Day Process Overview and Schedules – Complex Proposal • After Solicitation (RFP) Release / Leadership Go Decision • Includes Proposal Development & Submittal (not Post-proposal work: Q&A, Orals, FPR) • 30 or 45 Day Schedules

26. RFP Release • Distribute and Analyze RFP • Develop Structure and Outline • Determine Schedule and Activities • Refine Org Chart • Develop Proposal Plan Preliminary Activities Tech/Mgmt/Past Performance Proposal Process Develop/ Review Storyboards Write Second Draft Write First Draft Pink Team Review Red Team Review Write Final Draft Proposal Delivery Final Production Kick-off Meeting Resources & Training Cost Strategy Review Generate Cost Proposal Red Team Review Gather Cost Data Bid Review Develop Rates Cost Proposal Process Proposal Process – Post RFP Release

27. Storyboards! • Help the proposal team identify, evaluate, and agree upon proposal approach early in the development cycle. • Formally provide authors with their assignments and initial guidance. • Have authors think through and summarize their approach in outline form before starting to write! • Provide a quick-look at overall approach to fine tune it early: • Outline of Approach • Features and Benefits of Approach • Theme Statement • Draft graphics • Innovations • Risks • Past Performance or examples of proven approaches

28. Proposal Writing – “101” Reqt’s Hot Buttons L & M SOW Compliant What How For Example Past Performance Compelling Win Themes & Discriminators Features , Benefits and Substantiation Innovations Graphics Risks & Mitigation Writers should focus on each of these elements to Hit the Target!

29. Key Proposal Terms - REVIEWS • Black Hat and Blue Team Reviews: A countermeasure tactic used to strengthen our win strategy. Key individuals simulate our competitor’s perception of our company’s strengths, weaknesses, and strategies. This input is then used to anticipate our competitors’ probable approach to beating us. The results are strategies, themes, discriminators, and solutions developed to respond to these specific threats. • Pink Team:An internal review, conducted early in the proposal process to ensure that the authors are on the right track and storyboards match Capture Plan

30. Key Proposal Terms - REVIEWS • Red Team:Conducted when a complete draft of the proposal has been prepared. Made up of people who are independent in developing the proposal. A review for compliance and messaging. • Gold Team:A final high-level review of the proposal to ensure that Red Team changes have been made and that the proposal is ready to be submitted. • Book Check: The complete check of every page in each copy to ensure printing/production was completed correctly.

31. Ex: Human Resources (HR): Roles/Responsibilities Key Activities • HR Proposal Strategy • Coordination of Job Fairs • Initial resume & candidate assessment • Recruiting & Hiring (including key personnel) • Labor Mapping • Total Compensation Plan • Staffing Strategy Plan • Job Descriptions • Union Strategy & Approach • Collective Bargaining Agreements • Talent Management Plan • Learning/Training programs • Proposal Content as required • Contract Start-up Activities (Post Award) • Key Deliverables: • Labor mapping & salary ranges • Job Descriptions • Benefits & Total Compensation Plans • Proposal input for learning & training programs

32. Capture Mgmt Aligns with PMP • Integration Mgmt • Scope Mgmt • Time Mgmt • Cost Mgmt • Quality Mgmt • HR Mgmt • Communication Mgmt • Risk Mgmt • Procurement Mgmt Cuts across Organization Bid to the RFP! Meet customer deadlines Price to Win /B&P budgets Ensure accuracy Recruit, Staff, Comp Plans Throughout all phases/levels Identify and Mitigate/Accept Include BOMs, Suppliers

33. Why should Project Managers be concerned about Capture Management? • A growing discipline/approach that can be developed within your company • Increase your Project Mgmt skills across disciplines for a multitude of stakeholders • You can assist your company to increase revenue, customer base, and hopefully be rewarded for efforts! • Promote the proper use of Project Mgmt techniques and demonstrate application of the tools Everyone is responsible for Business Development!

34. Michael HackettProgram ManagerHoneywellWork: 410-964-7766Cell: 410-585-4595Michael.Hackett@Honeywell.com