© 2012 Market Connections, Inc.
Best BD and Marketing Practices of Winning Government Contractors
2012 Government Contractor Study Overview
JUNE 21, 2012
EMBARGOED UNTIL 6/21/12 7:30 PM
2012 GOVERNMENT CONTRACTOR STUDY OVERVIEW | MARKET CONNECTIONS, INC. | 703.378.2025
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@MKT_CONNECTIONS #GOVCONSTUDY 2
@mkt_connections
#GovConStudy
EMBARGOED UNTIL 6/21/12 7:30 PM
2012 GOVERNMENT CONTRACTOR STUDY OVERVIEW | MARKET CONNECTIONS, INC. | 703.378.2025
Win Rates
@MKT_CONNECTIONS #GOVCONSTUDY 3
12%
28%
60%
28%
57%
15%
0%
20%
40%
60%
80%
20% or less 21-50% Greater than 50%
Recompetes New Bids
EMBARGOED UNTIL 6/21/12 7:30 PM
2012 GOVERNMENT CONTRACTOR STUDY OVERVIEW | MARKET CONNECTIONS, INC. | 703.378.2025
2012 Expected Federal Revenue Growth
@MKT_CONNECTIONS #GOVCONSTUDY 4
19% 19% 20% 17%
11% 7% 7%
0%
5%
10%
15%
20%
25%
Decrease No Growth
1-5% 6-10% 11-15% 16-20% More than 20%
62%
EMBARGOED UNTIL 6/21/12 7:30 PM
2012 GOVERNMENT CONTRACTOR STUDY OVERVIEW | MARKET CONNECTIONS, INC. | 703.378.2025
Top Three Opportunities Next 12 Months
@MKT_CONNECTIONS #GOVCONSTUDY 5
33%
35%
45%
0% 10% 20% 30% 40% 50%
Healthcare IT
Cloud Computing/ SaaS
Cyber Security HIGHER WIN RATES
HIGHER WIN RATES
Note: Multiple responses allowed, will add to >100%
EMBARGOED UNTIL 6/21/12 7:30 PM
2012 GOVERNMENT CONTRACTOR STUDY OVERVIEW | MARKET CONNECTIONS, INC. | 703.378.2025
Expected Change in Bid/Proposal Budgets
@MKT_CONNECTIONS #GOVCONSTUDY 6
42%
47%
11%
Increase
Remain the same
Decrease
EMBARGOED UNTIL 6/21/12 7:30 PM
2012 GOVERNMENT CONTRACTOR STUDY OVERVIEW | MARKET CONNECTIONS, INC. | 703.378.2025
7
Structure of BD Function
@MKT_CONNECTIONS #GOVCONSTUDY
16%
52%
32%
Fully decentralized
Hybrid (centralized and decentralized)
Fully centralized 28% in 2009
EMBARGOED UNTIL 6/21/12 7:30 PM
2012 GOVERNMENT CONTRACTOR STUDY OVERVIEW | MARKET CONNECTIONS, INC. | 703.378.2025
Capture Management Elements
@MKT_CONNECTIONS #GOVCONSTUDY 8
HIGHER OVERALL WIN RATE (82%)
HIGHER OVERALL WIN RATE (75%)
HIGHER NEW BID WIN RATE (91%)
86% Early opportunity assessment to understand requirements
68% Decision gate reviews
71% Capture team development
62% Documented capture plan
61% Frequent review of capture plan and win strategy
30% Sharing key elements of capture plan with prospects
71% Creation of proposal development plan/roadmap
73% Ensure win themes are communicated in proposal
88% Review proposal deliverables
74% Color team reviews
72% Evaluate proposal lessons learned
EMBARGOED UNTIL 6/21/12 7:30 PM
2012 GOVERNMENT CONTRACTOR STUDY OVERVIEW | MARKET CONNECTIONS, INC. | 703.378.2025
Winning Capture Management Elements
@MKT_CONNECTIONS #GOVCONSTUDY 9
HIGHER OVERALL WIN RATE (82%)
HIGHER OVERALL WIN RATE (75%)
HIGHER NEW BID WIN RATE (91%)
Higher Win
Rates
Early opportunity assessment
Capture team
development
Color team reviews
EMBARGOED UNTIL 6/21/12 7:30 PM
2012 GOVERNMENT CONTRACTOR STUDY OVERVIEW | MARKET CONNECTIONS, INC. | 703.378.2025
Plans to Improve Capture Process and Win Rate
@MKT_CONNECTIONS #GOVCONSTUDY 10
…[evaluating] how are we doing, how does it compare to our strategic plan, what was the actual outcome and how we can learn from the divergence.
Ensuring early opportunity evaluation is consistent with company capabilities and past performance. Evaluating competitors. Early discussions with customer to ensure we can meet their needs and price requirements.
…concisely documenting each step of proposal development and conducting internal peer reviews of the produced materials, and actually 'learning' lessons learned.
“
17%
18%
19%
0% 5% 10% 15% 20%
Evaluate capture process structure
Earlier evaluation of opportunities,
needs and customer preferences
Use of debriefs/ reviews to apply lessons learned
Note: Multiple responses allowed
What is your organization currently doing to improve your capture process and win rate?
EMBARGOED UNTIL 6/21/12 7:30 PM
2012 GOVERNMENT CONTRACTOR STUDY OVERVIEW | MARKET CONNECTIONS, INC. | 703.378.2025
Rise of LPTA Could Jeopardize Mission Success
@MKT_CONNECTIONS #GOVCONSTUDY 11
As government budgets are being
squeezed , lowest price is uppermost in
the minds of contracting officers.
Less-experienced contracting officers lack skills and experience necessary to adequately write RFPs and evaluate responses.
The trend to more LPTA awards may avoid more protests, but it may also lessen agencies’ ability to meet mission goals.
LPTA awards stifle innovation and discourage contractors from providing leading-edge or value-added solutions.
HIGHER OVERALL WIN RATE (82%)
HIGHER OVERALL WIN RATE (75%)
HIGHER NEW BID WIN RATE (91%)
If you can clearly define your needs and requirements…It just comes down to cost. So I want you to be able to meet my needs, be technically acceptable, and after that, I want the lowest price. Period.
GOVERNMENT END USER
“
We’re delivering exactly what they asked for, so we’re not helping them solve their problems, we’re just responding.”
CONTRACTOR
“
EMBARGOED UNTIL 6/21/12 7:30 PM
2012 GOVERNMENT CONTRACTOR STUDY OVERVIEW | MARKET CONNECTIONS, INC. | 703.378.2025
Note: Multiple responses allowed, will add to >100%
Top Marketing Elements
@MKT_CONNECTIONS #GOVCONSTUDY 12
80% 72%
61% 59%
43%
0%
20%
40%
60%
80%
100%
Company Website
Large industry wide tradeshows and conferences
Thought Leadership Materials
Smaller, targeted events
Public Relations
Higher Win Rates
EMBARGOED UNTIL 6/21/12 7:30 PM
2012 GOVERNMENT CONTRACTOR STUDY OVERVIEW | MARKET CONNECTIONS, INC. | 703.378.2025
Note: Multiple responses allowed, will add to >100%
Other Marketing Elements Used
@MKT_CONNECTIONS #GOVCONSTUDY 13
36% 32% 27% 25% 21%
0%
20%
40%
60%
80%
100%
Social Network
Sites
Advertising- print
E-mail campaigns
Advertising- online
Webinars
EMBARGOED UNTIL 6/21/12 7:30 PM
2012 GOVERNMENT CONTRACTOR STUDY OVERVIEW | MARKET CONNECTIONS, INC. | 703.378.2025
Note: Multiple responses allowed, will add to >100%
Other Marketing Elements Used
@MKT_CONNECTIONS #GOVCONSTUDY 14
16% 10% 10% 9% 8%
0%
20%
40%
60%
80%
100%
Cause Related
Marketing
Direct mail campaigns
Telemarketing Mobile Websites and Apps
Podcasts
EMBARGOED UNTIL 6/21/12 7:30 PM
2012 GOVERNMENT CONTRACTOR STUDY OVERVIEW | MARKET CONNECTIONS, INC. | 703.378.2025
Marketing Challenges
@MKT_CONNECTIONS #GOVCONSTUDY 15
7%
13%
21%
24%
28%
32%
35%
46%
52%
0% 20% 40% 60%
Other
Meeting ROI requirements
Determining appropriate messaging
Lack of strategy for online marketing
Generating leads
Generating relevant and compelling content
Measuring ROI
Aligning sales, marketing and development objectives and strategy
Reaching decision makers or government personnel
Includes:
• Having no marketing division
• Lack of funding
Note: Multiple responses allowed
EMBARGOED UNTIL 6/21/12 7:30 PM
2012 GOVERNMENT CONTRACTOR STUDY OVERVIEW | MARKET CONNECTIONS, INC. | 703.378.2025
Expected Change in Marketing Budgets
@MKT_CONNECTIONS #GOVCONSTUDY 16
33%
46%
21% Increase
Remain the same
Decrease
EMBARGOED UNTIL 6/21/12 7:30 PM
2012 GOVERNMENT CONTRACTOR STUDY OVERVIEW | MARKET CONNECTIONS, INC. | 703.378.2025
Positioning for Future Success
@MKT_CONNECTIONS #GOVCONSTUDY 17
11%
12%
12%
15%
17%
0% 5% 10% 15% 20%
Marketing and branding
Stay informed about the market
Improve BD/capture strategy
Focus efforts through specific products,
customers
Building relationships/
networking
Note: Multiple responses allowed
What is the most important thing you or your company are doing to position for success in the federal market over the next 3 to 5 years?
Building relationships with new Federal Agencies and with potential teaming partners…
Focusing on specific accounts within the federal market.
Trying to establish a disciplined, gated, repeatable business development and capture process.
Addressing market strategies in our top 10 growth areas.
Revisiting and revamping company messaging to relate to the government’s current needs and missions.
“
EMBARGOED UNTIL 6/21/12 7:30 PM
2012 GOVERNMENT CONTRACTOR STUDY OVERVIEW | MARKET CONNECTIONS, INC. | 703.378.2025
Lisa Dezzutti MODERATOR President & CEO Market Connections, Inc.
Panel Discussion
@MKT_CONNECTIONS #GOVCONSTUDY 18
Teresa Rivera Outreach and Awareness Manager, Acquisition Services Directorate U.S. Department of the Interior
Corrine Gormont Vice President, Marketing & Communications L-3 STRATIS
George Obertubbesing Director of Business Strategy TASC
Paul Strasser Sr. Vice President, Strategic Development Dynamic Research Corporation
19 @MKT_CONNECTIONS #GOVCONSTUDY
Download the Overview www.MarketConnectionsInc.com/GovConStudy
Full Report Available in July!
Lisa Dezzutti, President & CEO [email protected] | 703.378.2025, x103
Cathy Cromley, Director of Business Development [email protected] | 703.378.2025, x108
Sieg Gooding, Director of Government Programs [email protected] | 301.471.2497
Market Connections, Inc. | 14555 Avion Parkway, Suite 125 | Chantilly, VA 20151