bid pricing

With 10+ Estimators and Financial Analysts, We are one of the UKs Leading and Most Trusted Facilities Management (Hard, Soft, TFM) Commercial Pricing Support Consultancy 

Bid Commercial Estimating Support

Submitting a winning bid requires deep experience and understanding of the pricing submission, market dynamics, benchmarking data and competition .We, at  Baachu, have pricing experience in 50+ FM tenders and Benchmarking including Public Sector, CCS Frameworks and Private sector Bids.  We focus on developing standard competitive pricing models with various combinations of scenarios / sensitivities available to increase your win rates. Our inhouse team and specialised consultants have grasp in Hard FM labour loading, Soft and TFM financial tools and techniques . Our team also stresses on governance / compliance (both internal and external) to help clients in improved and well-informed decision making.

Baachu’s mantra is “Bid only by exception”.  Our bid support primarily revolves around :-

  • Estimating 
  • Commercial & Pricing
  • Financial & Operational Cost Models
  • Self Delivery Vs Sub Contracting Sensitivity Analysis & Scenario Testing
  • Procurement and Supply Chain Analysis 
  • KPI Analysis & Standard Cost Book Development
  • Model Audits  

Commercial modelling

We work with your teams to build detailed financial models. We help your commercial team throughout the internal government and risk assessment process. We ensure you are able to submit quality RFP pricing response, timely.

Stress/Scenario testing

Our expertise in laying down sensitivities and building scenarios will help you evaluate various business and risk profiles.

Best Modelling Practices Review

We audit models by applying industry best practices. We not only perform model audits but also challenge assumptions to help you improve and refine inputs.

Financial Planning & Analysis

Once the bid is won, our team of financial experts also assist in building annual budgets and the strategic business plan for the contract.  Our Financial Advisory consultants can help create a well-structured Financial Planning & Analysis (FP&A) framework that can typically act as the financial nucleus for your organization, keeping its movement and momentum in harmony —both financially and operationally. Our experts will work in sync with your teams to create multi-year financial models and annual target-setting processes so that you can assume complete control of your financial management function. We ensure models are flexible and generate insights on areas of variance from the plans.

We can provide you with an internal analysis of a business/project based on the financial statements. Typical financial analysis report includes:-

  • Operational Benchmarking
  • Profitability analysis
  • Working capital analysis
  • Liquidity & solvency analysis
  • Trend analysis

Budgeting & Forecasting

Build bottom-up budgets at business unit levels stacking up at divisional and group level providing management with complete view of the revenues and cost break-up.

Cost Benchmarking

Contract analysis and benchmarking to highlight key movements.

Dashboard & Reporting

Effective, automated and simple dashboards for easy comprehension and decision making.

Board Packs

Management and board packs preparation facilitating timely decisions.

Baachu Team Members

Baachu works independently or in conjunction with your financial team to develop the Cost or Price Volume to meet the RFP requirements. Our support includes both pricing spreadsheets and developing the supporting narrative.

 

Bidders who win consistently use persuasive writing in their pricing narratives, not just in the technical proposal. They actively ghost competition with market data and benchmarking. This is especially important for incumbents whose labor and non labor rates are typically higher than their competitors’. Comparing your delivery costs to SFG 20, BICS standards, Minimum/Living Wage are critical so that yo dont overprice it without proper explanation.

 

We will help you develop cost/price volume-specific win themes that work in conjunction with your overall win strategy. We will weave win themes throughout the volume, including the cost/price volume’s Executive Summary, to ghost your competitors’ lack of price realism and reasonableness. We will also conceptualize impactful cost volume graphics to showcase the strengths of your pricing solution.

You may need to calculate your on cost (wrap) rate to complete your cost/price volume. Wrap Rates are the indirect burdens covering Fringe Benefit, Overhead, and General & Administrative (G&A) costs. They are applied on top of direct labor costs to derive the true cost of labor. We will analyze your historical wrap rates, account for future changes in costs, and bid wrap rates based on these projections. This will bring down your proposal price, helping you win. We will also help you calculate your Subcontract Material & Handling (SM&H) rate applied on top of fully burdened rates provided to you by each teammate.

Let us help you develop your proposal cost volume correctly to ensure you remain profitable, raise your win probability, and do well in post-award contract audits.

Determining and justifying your costs is critical when creating a winning price for your proposal. Baachu will work closely with your technical and management teams to identify your solutions’ cost using established risk modelling methods such as factored analogies, parametric models, learning curves, and Monte Carlo estimates. We will then document this information within a BOE.

 

Using Baachu’s BOE methodology, we will format cost information to facilitate the financial team’s overall price development. Our comprehensive approach to costing and pricing ensures a smooth, streamlined interface between the technical and finance teams, reduction in mathematical and categorization errors, and timely review of the volume’s text and pricing spreadsheets. BOEs are not always required for proposals. However, you may still choose to submit them to show the government that you understand the costs involved in accomplishing the work requested, which can give you an advantage over competitors.

 

BOEs prove that the price you propose is the lowest possible credible price, even when your price appears higher than your competition’s.

Our pricing consultants will help you manage the interface with the teammates. Pricing consultants will ensure your teammates understand what is needed for the cost volume, why it is needed, and when it is needed to facilitate complete and timely submission of data calls.

 

Pricing consultants will gather teaming partners’ information by labor hour/category or by line item for service or product. They will also ensure that your subcontractors receive target labor rates, wrap rates, or fee targets.

 

We will work with subcontractors on their price to receive timely and accurate submissions, securing their correct price inputs in time for incorporation into your spreadsheets. This will allow you to create a consolidated Cost/Price to submit to the government. We can even help negotiate or adjust workshare to help reach the Price to Win.

 

If your subcontractors submit sealed price packages directly to the government, we will provide a firewalled pricing consultant to ensure their submissions are correct. That way, you won’t have inconsistencies among your and your teammates’ submissions.

Our expert price consultants will contribute to your cost proposal strategy. Their roles are outlined below.

 

Cost Volume Lead

 

Our Cost Volume Leads manage all pricing-related aspects of a bid, including writing, proposal management, proposal reviews, editing, publishing, printing, binding, and delivering cost/price proposals and accompanying material. Often the Cost Volume Lead is also a Price Strategist. The Cost Volume Lead’s typical tasks and responsibilities include:  

 

  • Oversee preparation of the Cost Proposal and Business Proposal volumes
  • Ensure that all aspects of the Cost and Business Proposal volumes are accurate and adequate
  • Ensure that all cost/price proposal documents are reviewed in a timely manner
  • Actively participate in the Cost/Price, Business, and Technical Proposal reviews
  • Ensure the Cost/Price and non-price volumes are consistent
  • Maintain version control of proposal sections within the established workflow
  • Issue target rates to the teaming partners and work with them to arrive at the right numbers and inputs
  • Produce Cost and Business volumes in sufficient time for formatting, technical editing, and production

Our Price Strategists help you arrive at the right price to both win the bid (based on the Price to Win) and perform successfully and profitably on the contract. In many cases, a Price Strategist may also serve as the Cost Volume Lead. Our Price Strategist’s responsibilities may include the following: 

 

  • Study capture information about the opportunity
  • Gather pricing intelligence to predict what the government expects to pay and what competitors are likely to offer
  • Collect pricing information from recent contracts on the same or similar products or services, buyers, and end-users
  • Analyze company’s expected costs in performing the contract and its profitability, taking into consideration bid instructions that include conditions of purchase, delivery, contract type, and payment
  • Work with the technical team to develop and iterate the plan of work and the associated direct costs necessary to perform the contract effectively at the lowest possible cost
  • Develop Should Cost Models and Pricing Models
  • Estimate direct labor and other direct costs using the plan of work
  • Perform competitive Labor Rate Analysis
  • Assist with developing the Price/Cost Proposal win themes and narrative
  • Determine the bid price, taking into consideration the contract type (e.g. selecting competitive pricing strategies that are different for Firm Fixed Price bids and their variations, and for Cost Plus Bids and their variations)
  • Define contract modifications strategy ahead of time, if necessary
  • Set the strategy for developing BOEs, if applicable, and collect and organize information to support the bottom-line dollar figure with facts and figures
  • Determine fee or profit customary for the specific government client and contract type
  • Assist with the development of indirect cost rate, in conjunction with the company’s finance and accounting staff, if necessary
  • Assist with the Evaluation Notices (EN) response and Final Proposal Revision (FPR) process and negotiations with the government

Our Proposal Estimators/Pricers collect and analyze data on all factors that affect costs, such as materials, labor, location, duration of the project, and special equipment/machinery requirements. The methods that Estimators/Pricers use for estimating costs differ by industry.

 

Our Proposal Estimators/Pricers gather all data relevant to the final project estimate, and then determine the quantity of materials and the labor required to complete the project. Estimators/Pricers also collect and analyze bids submitted by subcontractors and vendors.

 

Our Estimators/Pricers work with the technical proposal staff to develop a Work Breakdown Structure (WBS) and review the project schedule. They make decisions concerning equipment needs, the sequence of operations, the size of the workforce required in terms of labor hours, and physical constraints. Estimators/Pricers also include taxes, insurance, warranties, and other costs.

 

Our Estimators also account for cost increase factors as allowances for wasted materials, bad weather, non-productive time, and/or shipping delays. Our Estimators may weigh in on a make/buy decision, such as whether it would be more efficient to produce or to purchase parts.

 

A cost estimator prepares time-phase charts and learning curves. Time-phase charts indicate the time required for design and fabrication, debugging, and testing. Learning curves graphically represent the rate at which the performance of workers producing units improves with repetition. This “cost reduction” approach can be linear or curvilinear as workers learn and become more efficient, resulting in a lower unit price.

 

If your company has a database of parametric data on the costs and conditions of multiple other similar projects, our Estimators/Pricers may use parametric analysis. It is a process used to estimate costs per unit based on projects similar in size, scope, location, and complexity. Our Estimators/Pricers understand how to relate similar projects to a bid to make or justify pricing assumptions.

A BOE is part of the proposal cost volume that shows how you came up with your price – the basis of your cost estimate. It shows the government that you understand the purpose of the project and you can justify your proposed solution using the lowest possible, credible cost. A good BOE relies on proof, but many BOEs lack the basis portion. For example, a basis could be professional opinion combined with an element of a similar past project. Or a basis could be parametric data from a database on the costs and conditions of multiple other similar projects. The parametric analysis uses the statistical relationship between past information and other specific variables.

 

Our BOE Development Experts/Pricers are adept at capture (solution development), estimating, and pricing. Their responsibilities may include the following:

 

  • Understand multiple solutions for the project, alternatives, and the resulting costs
  • Decide on the primary estimating methodology used to prepare the cost estimate
  • Explain the scope of work being estimated
  • Identify the types and status of engineering and design deliverables to prepare the estimate, including any design basis assumptions
  • Document the project management, engineering, design, procurement, fabrication, and construction approaches to the project, along with the contracting and resource strategies
  • Document assumptions that could impact the end result of the estimated cost
  • Describe the methods and sources for determining all material, labor, and Other Direct Costs (ODC) pricing
  • Identify allowances, exclusions, exceptions, contingencies, and management reserve
  • Document any comparisons of resulting metrics, ratios, and factors with similar projects, historical data, and industry data, as well as differences between the bid project and the one used for the BOE
  • Discover and report potential cost- or time-saving opportunities
  • Decide on the appropriate level of detail to ensure consistency between various BOEs submitted in the proposal, and to support, justify, and confirm the cost estimate
  • Identify risks and opportunities within the BOE
  • Collect the documents used in the estimate development and reference them in the BOE; itemize and accurately describe them in the appropriate section of the BOE
  • Participate in cost volume reviews, and incorporate reviewers’ comments

 

We use a proprietary table-driven, dynamic tool for BOE development in our work. This BOE tool allows our BOE Development Expert to:

 

  • Support a single BOE development paradigm
  • Have generic data structure define a dependable interface between cost estimation and pricing
  • Support development of reusable reports and components
  • Streamline work through drop down selection wherever lists are applicable
  • Control input and editing
  • Remove mechanical errors of BOE development
  • Remove categorization errors
  • Eliminate mathematical errors
  • Reduce rework

Our Support Options

1. Estimating & Commercial Support 

By taking advantage of Baachu's professional estimators, your pricing submission will be standardised, benchmarked and competitive, giving you a much greater chance of winning the contracts your business needs.

Pricing an effective ITT or RFP can take time and is a specialist job. 

Our professional estimators and commercial managers are trained to:

  • Clarify precisely what your client is looking for
  • Help you define your pricing win themes, USPs and differentiators
  • Identify additional information needed to build pricing submission 
  • Ask the right pricing clarification questions of the client
  • Draft a detailed bottom up Hard FM (labour load) and Soft FM submissions

While nobody knows your business better than you do, we will gather from you the standard costs and templates improvise it to make your pricing stand out. And of course, you’ll have final pricing sign-off on submission, so you’ll be 100% satisfied that what the client sees is your business at its very best.

 

2. Retained Service 

By booking dedicated Estimating and Pricing specialists every month you can use our expertise on specific tender opportunities or on everyday best practice tasks, such as benchmarking your costs, building standard cost/financial models, budgets, supply chain analysis etc. Importantly, this time can be booked flexibly, meaning if you are waiting for a strategic tender or proposal to be published you can be sure we’ll be available to work on it with you.

By reserving a minimum number of days or hours with Baachu each month, you’ll be able to plan strategically and be fully prepared for when the next important opportunity lands. And from there, we’ll work hand in glove with you to ensure you have the best chance of winning.

Retained Service is for businesses serious about growing through tender and proposal wins; you will gain priority access to our estimators, commercial managers and financial analysts and their work.

 

3. Fully Outsourced Estimating Support 

Outsourcing parts or all of your bid (proposal writing, reviews or pricing) is a long-established approach whereby you hire a specialist business like Baachu to deliver their service. 

Numerous awards, qualifications and client testimonials, as well as a win rate topping 80%, suggest that Baachu is the best integrated strategy to business winning outsourced bid support option in the FM market today.

We can take on all or part of your process, from conducting pre-bid activity such as competitor intelligence right through to ensuring that lessons learned are acted on for future opportunities. While you are the experts in your business, we are the experts when it comes to bidding and commercials, and with our pool of talented estimators and financial analysts having worked across 11+ FM public and private sectors you can rest assured we’ll build the right team for your organisation.

 

4. Model Audit and Review Support 

If you’ve already drafted your pricing response but want to know how it stacks up, then our Model Audit and Commercial Support is exactly what you need.

Going well beyond a formula and assumptions (although that is included, of course), our experts will check that all your client’s pricing template fields have been calculated correctly and all their requirements followed. Crucially, we flag up any discrepancies in good time before submission, so you get as much time as possible to reprice and improve your response.

We will also advise on margin improvements, cost benchmarking 

and critique pricing risks, sensitivities and USPs. 

As with our Standard Bid Consulting services, we will also provide a full Review Report to help you prepare for your future opportunities.

 

5. Interim Commercial/Estimator Support 

Staff vacancies, absences and a high volume of bids are unfortunately part and parcel of running a business. Consequently, the option of short-term cover can make a real difference, particularly when you’re faced with must win tenders and bids.

Baachu can step in to keep your business development running smoothly. Whether you need someone to manage your full pricing submission, or simply support the SFG labour load or Soft FM cost build or deliver commercial leadership and management for your bid , we provide in-house professionals who can fill the void.

Part of the service means we can use our outside perspective to assess your pricing cost build processes, strengths and weaknesses and create an action plan to implement improvements so that your bids are at optimal industry price point. 

Your team members can also benefit from one-to-one coaching and mentoring, proving that you invest in them, increasing staff retention and all the while upskilling them.

 

6. Recruitment 

Building your estimating team with the right people, brimming with potential and intelligence, who hold the right skills to win you more business, is a business-critical task.

Baachu can provide expert assistance so you select the right individuals for your organisation – estimators, commercial managers, writers and managers who can help you win bid after bid in a professional and reliable manner. By choosing our Recruitment Support you’ll get a service that tests the skills, traits and competencies of your candidates.

The Recruit and Learn Assessment Centre will include:

  • A clear understanding of your bidding and commercial culture and the expertise required to thrive in it
  • A timed estimating exercise relevant to FM industry
  • A custom roleplay scenario simulating part of your bidding process
  • A member of our team joining your interview panel

7. Training 

Responding successfully to bids and tenders is a skill – one that can be taught. If your bid team needs to improve in a specific area, or indeed, in all areas of bidding, then Baachu Scribble can give them the tools, templates to succeed.

Inside Scribble, we have 250 hours bid and proposal learning including APMP Certification Training. Your training requirements are unique, which is why we will work with you to create a curriculum that is completely bespoke resulting in improved bid performance for all your bid writers and managers.

We’ll give an honest and accurate assessment of your current bidding performance, to identify shortfalls and opportunities before we work together through questions from recent – or even live – bids, so your colleagues can take what they learn into their everyday work.

There is a huge shortage of estimators in the FM industry, Drop Ros Ewart, our Resourcing Director a line - ros@baachu.com to discuss your interim, permanent, retained and fully outsourced estimating support.

Contact us today to discuss how we can build a pricing strategy that sees your business grow.

 
DOWNLOAD OUR SAMPLE REPORT!

The United Kingdom is one of the largest markets for facility management services in Europe in terms of maturity and sophistication. The market is highly competitive as well, owing to the presence of several organized players and strong presence of top global companies, such as Mitie, ISS, Sodexo, CBRE, JLL among others.

The market has been valued at USD 63.97 billion in 2020 by Mordor Intelligence. Frost & Sullivan estimates the UK FM Industry revenues to be $43 Billion. As per our database the overall FM market in the UK stands at £107.2 billion in TCV. The public sector contributes 59% while the private sector contributes 41%. Among the service types Hard & Soft FM Contributed almost equally at 36% & 35% respectively. The integrated services contributed with 29%. Local government authorities were the lead buyers in the overall stack with 19% of value contribution followed by Central Government and Office both at 14% each.

For details, Read the free  Summary report. 

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