The October edition of National Defense Magazine showcases “Making the Case for Irrational Bid Behavior” authored by Avascent Senior Associates Jim Thompson and Kristin White. The article discusses aggressive bid strategies employed by defense contractors who are operating in an increasingly cutthroat market. Thompson and White explain that this behavior is often justified, as long as it is informed by well-researched customer cost expectations, and clarity per a company’s internal risk tolerance.
“History is riddled with examples in which uninformed and aggressive bid decisions have led contractors down a risky path that ultimately resulted in failure. However, capture managers and executive leadership are now recognizing that aggressive strategies can be very effective, and therefore appropriate and rational, when driven by the right intelligence. An asymmetric strategy requires a detailed understanding of competitors and customers in order to manage risk. In an environment where everyone is trying to gain an edge, there are some contractors who have successfully played to win.”
Read the full article online here.