The Cost

Time is Money

Now that you know that you have enough time to produce a solid proposal and meet (or have a work around for) those go/no-go elements, let’s figure out the cost to build a great proposal. The principle “cost” is the value of your the time you spend writing, and we are going to break the time into two parts:

Invested hours: This is time that you have to spend at some point to be a successful contractor (e.g. the time you invest creating strong core content for your proposal library or the time you spend finding and developing relationships with teammates that you want to work with again and again).

We aren’t going to count this time towards the cost of this RFP since we have to spend it at some point or another

Lost hours:  This is time spent that has no or low investment value towards future work, and to estimate it look at the total number of hours you estimated it would take you to write, then:

1) If you are working independently (just your team) multiply by 15% and that is your lost time (e.g. time that you spend on the peculiarities of this RFP that won’t translate to other RFPs)

2) If you are working with one other team on this bid multiply by 20% to capture the added time lost on meetings and team admin

3) If you are working with more than 1 team multiply by 25%

But that’s it, thats your only lost time

Time is money: Now that you know your Lost Time lets figure out how much that is worth. To do this lets:

1) Take the number of Lost Hours

2) Multiply them by

3) Your writing team’s average hourly rate (if you need help figuring this out take your writing team’s average salary and divide by 2,000 to get the average hourly rate)

4) The resulting number is a decent and quick approximation of the cost that is exclusively attributable to this RFP