Connect Project Performance with your CRM to Create Better Proposals Faster

Connect project performance with your CRM to create better proposals faster

Government contracting (GovCon) companies must excel at analyzing their finances to win federal contracts. Effective forecasting, budgeting, and cost management are essential for picking opportunities, pricing proposals, and delivering high-quality work on projects. This requires them to maintain a balance between short-term profitability and sustainable long-term growth – all while helping them maintain compliance with strict federal regulations.

To achieve all this, GovCons need cross-functional collaboration during the bidding process. The challenge is that tracking and managing communications across teams can be challenging. An enterprise customer relationship management (CRM) tool tailored for the unique financial, collaborative, and process needs helps increase both alignment and efficiency.

The primary benefit of a GovCon CRM

There are plenty of benefits to consider. Of course, the best one for a GovCon is one that is purpose-built for its industry-specific needs.

A CRM tailored for GovCons allows teams to gather and utilize customer data and insights effectively. They can then use this accurate and timely data to optimize their proposal strategies, estimate costs, negotiate contracts, and increase their opportunities.

A GovCon CRM also supports accurate financial forecasting, which is crucial for the long-term growth and revenue generation that successful GovCons require.

Why predictable financial forecasts and cost estimates matter

Having access to the correct data helps GovCons make informed decisions about what work to pursue as well as the financial feasibility of that work. That’s why predictability in financial forecasting over two to five years helps structure competitive proposals. Accurate cost estimation relies on past project data, including direct and indirect costs at item or task levels. GovCons can then use this to forecast total project costs.

A comprehensive cost estimate, combined with competitor analysis, forms the foundation for a winning proposal. Effective proposal pricing is vital, especially if contracts lack provisions for economic price adjustments. Accurate initial pricing maximizes the chances for profitability even in the face of market fluctuations.

Access to comprehensive information through a CRM enables finance teams to build a detailed financial picture, ensuring bids are competitive and financially viable.

The role of an enterprise CRM in financial forecasting

Think of an enterprise CRM for GovCon as another player on your team. It can offer valuable information that allows finance teams to do their jobs effectively. This includes (but is not limited to) detailed market intelligence, customer data, and sales process insights.

Taking this a step further, integrating your CRM with an enterprise resource planning (ERP) solution for GovCon provides even more helpful financial insights, such as payment histories, project performance, and billing cycles. This information helps finance teams:

• Understand the pipeline, resource deployment, and bid profitability

• Assess which opportunities to pursue based on revenue potential

• Compare competitor capabilities and pricing

• Build accurate sales forecasts for budget planning · Structure proposals according to contract types · Adjust wrap rates and ensure compliance with government regulations

• Manage capital and cash flow efficiently

• Identify payment or credit risks

• Track key metrics like bid-to-win ratio, sales process length, and revenue targets

In short, by enabling you with accurate, real-time data and other capabilities, a CRM (when paired with the right ERP) can help make business easy for your GovCon. You can create and win proposals faster.

The right software will bring your teams together and empower your growth

A well-integrated CRM is a hub for diverse stakeholder contributions, leading to more reliable input and informed decision-making. Being closest to the customer, project managers play a critical role in updating the CRM with real-time project data, especially for follow-on contracts and major modifications. This firsthand information aids in competitive edge planning.

Customer and project information is invaluable to finance and other teams throughout the contract lifecycle. A CRM eliminates information silos, allowing teams to access high-quality shared information. Integrated CRM systems enable teams to support each other, enhancing the quality of proposals and contracts.

To learn more about how an enterprise CRM like Unanet can improve your GovCon proposals, contracts, and financial forecasts, download our eBook: GovCon Growth Playbook.

Jacob Borgeson is senior product marketing manager at Unanet, a software company that provides enterprise resource planning and customer relationship management programs for organizations in government contracting, architecture, engineering, and construction. https://unanet.com/