Have you noticed a slowdown in proposal work? I have and it's starting to become a disturbing trend, I fear. This can lead to a few unpalatable things for independent proposal contractors:

  • A decrease in the number of contracts being bid will result in fewer billable hours.
  • Fewer billable hours can lead to lower hourly rates.
  • Lower hourly rates increases the pool of contractors for any particular job.
  • An increased pool of contractors leads to a corresponding increase in competitiveness for the fewer jobs that are available.
  • Increased competitiveness makes it more likely that good clients of yours may consider an alternative.

A possibly scarier trend that I see is the desire on the part of my clients to enter into fixed price contracts. Poor planning on these types of contracts can lead to a dramatically lowered hourly rate. Always develop an honest estimate of the number of hours you should need for a fixed price bid, and then add 10-15 percent to it. This helps cover you when the inevitable extension is granted and your client still expects you to honor your fixed price.

My friend and colleague, Dr. Jayme Sokolow, the Founder, Owner, and President of The Development Source, said it best in his article Dire Days Ahead for Proposal Professionals?: "I wish I could be more positive, but trends in federal government contracting do not bode well for proposal professionals."

The key for independent proposal contractors is to stay busy. Staying busy during this slowdown is not only critical to individual contractors, it's also critical in the sense that companies will be in a bit of trouble when the cycle changes and the slowdown is over. When the cycle changes and there is a corresponding increase in government procurements, companies will once again be faced with surge requirements to get quality proposals out the door on time.

Will you be ready for when the cycle turns, work picks back up, and your client again need your help? How do you stay busy and keep your head in the game during the slowdown? I'll provide my thoughts on that next time.

If you would like to discuss this in more detail, please contact me on info@perfblue.com. Thanks!

Attribution

http://www.theproposalguru.com/dire-days-ahead-for-proposal-professionals/ - Dr. Jayme Sokolow

About the Author

Drew Cotterman is the Founder and President of performanceBLUE, LLC, a professional proposal development firm. He founded the firm in 2010 after working in the proposal world for more than 20 years. He provides capture support; proposal development including management, writing, pricing, graphics, desktop publishing, and production support; process training; and employee mentoring.