positioning to win federal business

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Positioning to Win Federal Business

Survey Report

April 2009


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Study Methodology

Res ondent Profile

Study Highlights

Business Climate

Business Capture and Marketing Best Practices

Strategies for Continued Success

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2009 Government Contractor Study Methodology

Five 45-minute, in-depth telephone interviews were conducted with key corporate,, ,

questionnaire development.

An online survey of 228 decision makers and influencers from companies serving , .

Survey invitations were extended to Washington Technology subscribers, and

Market Connections house lists.

The study sample afforded a margin of error of 6.5% at a 95% level ofconfidence.

, .

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Key Business Activities and Job Functions

Source: 2009 Government Cont ractor Study

Note: Multiple responses provided

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Organization Size and Classifications


6Note: Multiple responses provided


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2008 U.S. Revenue


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Revenue Sources

Respondents stated that the plurality of their revenue, both in the total organization andwithin their division, on average comes from Defense agencies, followed closely byCivilian and Independent agencies.


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2008 Win Rates

The majority of respondents

win rate was more than 75%for re-compete bids.

Half of all respondents (50%)

won 40% or fewer new bidsin 2008.

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2008 Contract Sales

The majority of respondents (84%) sell to the government as both prime and subcontractors; however, most respondents revenue (67%) comes from selling as a primecontractor.

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2009 Revenue Growth Estimate

Proprietary: 2009 Government Contractor Study

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2008 Bid/Proposal Budget and Activity

The majority of respondents(72%) stated that their

proposa u ge

represented 10% or less oftheir organizations revenue.

The average respondent

organization put in 10 task

contract bids in 2008, withmedian values of $1,750,000and $10,000,000,

.Type of Bid Median Number

of BidsMedian Value of

Bids

Task order on existing contracts 10 $1,750,000


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Other contract bids 8 $10,000,000


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Anticipated 2009 Bid Activity

The majority of respondents (71%)

2009.

Respondents who reported lower winrates in 2008 were significantly morelikely to state that they expected their2009 bid activit to increase.

Those who reported higher win rateswere more likely to expect the same

14Source: 2009 Government Cont ractor Study

.


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2009 Contracting Estimates

The majority of respondents (85%) expected to target both defense and civilian agenciesin the next 12 months.

, -to increase in 2009, while GSA Schedule and the open market were expected to decrease.

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Structure of Business Development Function

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Top Ten Opportunities in the Next 12 Months

Information sharing (36%)

were selected as the top twobusiness opportunities overthe next 12 months.

Although chosen by fewer

respondents, cloudcom utin /software as aservice (21%) andsurveillance IT (20%) bothmade the list of top tenbusiness o ortunities.



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Top Ten Challenges in the Next 12 Months

was chosen as a top challengeby more than half ofrespondents (58%).

Those with higher win ratesalso reported that aligning andadapting internal capabilities toagency requirements would bea challenge.



Higher Win Rates= BD/Sales Personnel= 18


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Expectations for New Administrations Effect on

Contract Opportunities Respondents who reported higher win rates were more likely to view the new

administration as creating more obstacles, whereas those with lower win rates sawmore opportunities.

Expectations for the new administration's effect on contract opportunities was similarwhether respondents were considering the next 12 months or beyond.


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Estimates of Number and Value of 2009 Contracts

Respondents estimated thatthere will be more civiliancontracts and less defensecontracts awar e n .

Those with higher win ratestended to predict fewerdefense contracts, whereas

ose w ower w n ra esmore.

Respondents also estimated

contract dollars awarded oncivilian contracts and fewerfor defense contracts in

.

Higher Win Rates=


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Lower Win Rates

=


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Business Capture and MarketingBest Practices

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Roles in the Capture Management Process

BD/Marketing and ProposalManagers were the mostcommon ob functions 86%reported as being included inthe capture managementteam.


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Capture Management Steps

Those with higher win ratesmore often reported using thelater steps of the capturemanagement process, such

as color team reviews andevaluating proposal lessonslearned, compared to thosewith lower win rates.

Three-quarters of all

55%77%

early opportunity assessmentsand reviewing proposaldeliverables in their capture

58%83%

.

42%73%

56%81%

Steps for the capture process

are listed in chronolog ical order. Note: Multiple responses provided


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Lower Win Rates=


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Gate and Color Team Reviews

Average Numberof Gate Reviews:

The majority of respondents

reviews (52%) and colorteam reviews (59%) were

effective.

Average Number ofColor Team Reviews:

3


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Successful Contractor Plans to Improve

Ca ture Processes Currentl Include

Developing New/Maintaining Exist ing

Relat ionshi s

New Partners/

Expanded Targets

Better relationships with existing and newclients.

vehicles and relationships.

Focusing Efforts Earlier

in BD Process

Put more emphasis on the

More Rigorous Bid Selection

Focus our best resources [on]

fewer, very large bids. .

Coordinating/Collaborating

ev ew ng an mprov ng

Processes

Having an outside party evaluate our

processes to ensure we are effective

Close coordination of Account,

Capture/BD and Solutions

Organizations.


in all areas.

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Budget Changes Over the Next 12 Months

About one-third of respondents anticipated that both their marketing and bid/proposalbudgets would stay the same over the next 12 months.

On average, significantly more respondents expected their bid/proposal budget to

increase and their marketing budget to decrease.


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Marketing Tools Used in 2008

Those with higher win rates reported using print advertising more often in 2008 than thosewith lower win rates, while those with lower win rates reported using email campaigns andonline advertising more often.

39%61%

67%

52%

22%

31%



27Higher Win Rates= Lower Win Rates=


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Changes in Use of Marketing Tools in 2009

At least half of all respondents reported that they plan to increase use of direct selling, theircompany website, white papers and peer-to-peer facilitating in 2009.

campaigns in 2009, whereas those with lower win rates planned an increase in this area.


28Higher Win Rates= Lower Win Rates=


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Changes in Use of Marketing Tools in 2009continued

Those with higher win rates reported that their use of online advertising anddirect mail campaigns will stay the same in 2009.

campaigns.


Higher Win Rates= Lower Win Rates= 29


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Understanding the Needs of the Federal Market

Nearly three-quarters ofrespondents (71%) usedoppor un y rac ngdatabases, such as Inputand FSI to help themunderstand the needs of thee era mar e n .

Thirty-two percent of

using custom primaryresearch, such as online ortelephone surveys and focus

.


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Successful Contractor Plans to Position for

Success in the Next 3-5 Years Currently Include

Maintaining/Building Client Relationships

Continued in-person interaction with current and

potential customers...

Client Satisfaction.

ar e ng an ran ng

Market [our] technology strengths andinnovative, cost effective solutions.

Direct marketing to customers.

Developing and executing a well designed

marketing plan for the federal space

Hiring/Retaining Qualified Personnel

Recruiting and retaining knowledgeable

.

strategic hires.

Move into new service areas...

Diversification


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ontact n ormat on

Market Connections, Inc

,

Chantilly, VA 20151

703.378.2025

www.marketconnectionsinc.com

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positioning to win federal business

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