Proposal Risk Register: Essential Tool for Bid Success
The Missing Signature That Sank a $5M Bid
We've all heard the horror stories: a small business loses a lucrative bid because of a missing signature, an unconfirmed partner, or an unstaffed key position. These are examples of proposal risks—distinct from technical risks in the offering. To prevent these issues from killing our bids, we need a proposal risk register.
Why We Need a Proposal Risk Register
Let's clarify the difference between proposal risk and technical risk. Technical risk involves the feasibility and effectiveness of our proposed solution. Proposal risk, on the other hand, pertains to issues that can derail our bid regardless of how strong our technical approach is.
For instance, consider FAR Clause 52.219-28, which mandates a Small Business Subcontracting Plan for certain contracts. Non-compliance with this clause is a significant proposal risk. Even if our technical solution is impeccable, failing to submit a compliant subcontracting plan can result in an automatic disqualification.
Columns in Our Proposal Risk Register
Our proposal risk register includes the following essential data points for each risk item:
- Risk ID: A unique identifier for each risk.
- Description: A brief explanation of the risk.
- Impact: Qualitative assessment of how this risk could affect the bid (Low, Medium, High).
- Likelihood: Probability of the risk occurring (Rare, Unlikely, Possible, Likely, Almost Certain).
- Owner: The person responsible for mitigating this risk.
- Mitigation Plan: Steps we will take to address the risk.
- Status: Current state of the risk (Open, In Progress, Closed).
Weekly Cadence for Risk Management
We review and update our proposal risk register every week. This cadence ensures that we stay on top of emerging risks and can take timely action. During our weekly meetings, we:
- Review the status of each risk.
- Discuss any new risks that have arisen.
- Update the mitigation plans as needed.
- Close out risks that have been successfully mitigated.
FAR Clause 52.219-28: The Small Business Subcontracting Plan
Non-compliance with FAR Clause 52.219-28 can be a major proposal risk. This clause requires a detailed subcontracting plan for contracts above certain thresholds. If we fail to submit a compliant plan, our bid can be disqualified.
To mitigate this risk, we ensure that our subcontracting plan is prepared well in advance and reviewed by our legal team. If you want a structured way to score your current capture pipeline, the free VETR readiness assessment will walk you through it in under five minutes.
NAICS Code 541611: Management Consulting Services
When bidding under NAICS Code 541611, we face common proposal risks such as:
- Inadequate Past Performance: Agencies heavily weigh past performance under this code.
- Lack of Key Personnel: Having the right staff with the right experience is crucial.
- Incomplete Resumes: Missing or outdated resumes can raise red flags.
GSA MAS Schedule 70: IT Services
Bidding on GSA MAS Schedule 70 introduces unique risks, such as:
- Pricing Errors: Incorrect pricing can lead to contract modifications or even terminations.
- SOW Misalignment: Failure to align our proposal with the Statement of Work (SOW) can result in non-responsiveness.
- Late Submissions: Missing deadlines can automatically disqualify us.
Unstaffed Key Positions: A Recurring Risk
Identifying and mitigating unstaffed key positions is critical. We take the following steps:
- Talent Pipeline: Maintain a pipeline of pre-vetted candidates.
- Contingency Plans: Have backup personnel ready to step in.
- Regular Reviews: Conduct weekly reviews to ensure all key positions are filled.
Partner Confirmations: The Silent Killer
Unconfirmed partners can silently kill a bid. To avoid this, we:
- Early Engagement: Involve partners early in the capture process.
- Written Confirmations: Obtain written confirmations of their participation.
- Regular Check-ins: Conduct regular check-ins to ensure their commitment.
Dollar Thresholds and Their Impact on Risk
The value of the contract significantly impacts our risk landscape. For contracts below $150,000, the risks may be relatively low. However, for contracts above $750,000, the risks escalate, requiring more rigorous mitigation strategies.
Using VETR to Automate Your Proposal Risk Register
VETR integrates seamlessly with your workflow to manage proposal risks proactively. Our platform allows you to:
- Automate Risk Tracking: Automatically update the status of each risk.
- Generate Reports: Create real-time reports to share with stakeholders.
- Set Reminders: Receive notifications for upcoming deadlines and actions.
If you're ready to take your proposal management to the next level, start a free trial today and see how VETR can help you mitigate risks before they become deal-breakers.