Winning Government Business, 2nd Edition

Chapter 14

Preparing the Winning Cost Volume

Stating that cost is important in winning government contracts is equivalent to proclaiming that the Pope is Catholic. Of course cost is important! Sometimes it is the most important ingredient of a winning bid. Occasionally, it is practically the only consideration. Being the low bidder has its advantages regardless of the relative weight of cost in the overall source selection criteria. No matter what you read, hear, or think, cost is always important. Yet there is more to winning the cost war than bidding the lowest number.

Winning means capturing a piece of new business and making money for your organization. Winning is easy if you are willing to lose money. The key is to bid low enough to win, ...