In Government contracting, the green team review is the pricing review. Most contractors make this all-important review after the technical red team review. What is frightening is that too many companies make it the only pricing review. Do not make this mistake of scheduling one pricing review and only after the technical solution is ninety percent complete! You will lose on price.
In my book, Secrets of Strategic Pricing® for Government Contractors, I address scheduling at least three green team reviews, preferably more – call them sage, emerald, and forest green. Why? The green team reviews not only assure the proposal and executive team that you are compliant and responsive, but also give the top management team a detailed look into the price, the details of the pricing strategy, and the rationale behind your value proposition. You cannot accomplish all of that and get to a reasonable, competitive, and winning price without more than one review.
Why a Green Team Review?
Keep the green team reviews for pricing only. Hold pink, red, and gold team reviews for the pricing narrative separately. The strongest benefit of scheduling three pricing reviews is that you overcome last-minute price cuts, at least most of the time. When you include leadership in all pricing gate reviews and three green team reviews, they are involved in the pricing decisions and the target price progress. Close examination of the pricing at the mid-point of the proposal process reduces rushed price cuts.
Key Pricing for Each Green Team Stage
|
Sage Green |
Emerald Green |
Forest Green |
|
Pricing strategy consensus |
Tables/graphs supporting pricing |
Integrated technical and cost |
|
Compliant BOE and PWS draft |
Internal model supporting leadership reviews |
Comparison with the price to win |
|
Compliant BOE and PWS draft |
80% BOE and cost data |
Final leadership approval |
|
Compliance matrix of pricing model and narrative |
Executive summary value proposition |
Compliant, complete, and responsive |
Key Benefits of Green Team Reviews
- Gives leadership ample opportunity to review pricing strategy and pricing for direction, correction, and changes
- Organizes pricing for ultimate focus on the price to win targets
- Uncovers hidden pricing pitfalls
- Discovers insights from previous pricing activities
- Achieves the right price
Social Media Info
LinkedIn:https://www.linkedin.com/in/marshalindquist1/
Linkedin Corporate: https://www.linkedin.com/company/granite-leadership-strategies/?viewAsMember=true
Twitter handle: https://twitter.com/MarshaGovCon- MarshaGovCon is the link
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- Strategic Pricing®– It Is Not Just the Numbers - February 2, 2024
- The Big Picture of Strategic Pricing®for Government Contracts - January 29, 2024