Risk in Government Proposals
Historically, companies that have submitted proposals for government contracts have included in each proposal one or more sections intended to convince their customer that they can complete the contract on time and on budget. Because many government contracts have seen severe schedule delays and cost growth, many government agencies - notably the military and NASA - have developed an intense interest in risk management.
Many government requests for proposals (RFPs) these days explicitly require that the contractors include sections on risk management. The risk management section must include a description of the contractor's overall risk management program, as well as a discussion about how that program will be tailored to a risk management plan for that particular program. To be compliant, this section must include specific details about risk management responsibilities, meetings, criteria, forms, policies, procedures, thresholds and so on. To be evaluated well, this section should also include a preliminary risk assessment of as many areas of the program as possible, containing potential risk events, probabilities, cost and schedule impacts, mitigation plans, and contingency plans.
Additionally, government RFPs may also explicitly require sections on technology maturity. To be compliant these sections must include a description of the current state of the technologies being proposed and plans on how that maturity will grow throughout the program. This discussion should include the criteria by which technology maturity will be assessed - a technology readiness level (TRL), for example - the methods by which maturity will be assessed, the risks associated with technology development, and associated mitigation and contingency plans.
When Bill was working for a large aerospace company he was given the assignment to write the risk management and technology maturity sections for a large proposal. Through his interviews with the engineering staff he was able to assess the current state of the technologies being proposed, and the potential risks associated with the program. The company ultimately did not win the contract award, but in the debrief with the customer two of the sections in the proposal were cited as being extremely well-written and responsive: Risk Management and Technology Maturity.
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