WorldWide Drilling Resource

33 WorldWide Drilling Resource ® JULY 2013 How to Win Bids by JD Sullivan Brunner & Lay, Inc. I imagine today’s job bidding mar- ket is more competitive than any time in the past. Companies are traveling farther searching for their next project; and bidding is intense with shorter bid preparation time and more complicated bidding processes and procedures. What it amounts to, simply stated, is more hoops to jump through, on or before bid day. I have had the good fortune to win and lose my share of bids and, over time, I have developed several steps I believe have helped me win bids. Often- times, winning bids is about more than just the lowest number on the bid sched- ule. It’s important to remember that nowadays it’s about the lowest, most responsible, responsive bid that wins the award. Let’s look at responsible and respon- sive bidding. Normally, this means your bid package is complete. Everything requested or required is included. I often err on the side that more is better than less, but sometimes you are penal- ized for going over the prescribed number of pages or submittals. I like to carefully read the entire package before I start completing it. I look for important clauses and requirements, and highlight them so I can easily find them in the rush to put the package together before bid day. Responsible generally means you have successfully completed similar size and scope projects in the past. I main- tain a file of previous job testimonials on customer letterhead or with contact information, so the information regarding previous completed work can be easily verified on bid day. I make certain our bonding ability and previous bonding are documented. Responsive and responsible are subjective terms often interpreted by the bid writer or bidding entity in the manner which suits them best. Don’t leave anything to chance, and be pre- pared to document your ability, includ- ing financially performing the work and successfully completing the project. I spend a lot of time reviewing the project specifications and bid schedule to fully understand the scope of work. I look for discrepancies, questionable prac- tices, or specifications. If I find them, we clarify them before submitting the bid, never afterwards. I never count on change orders to profit from a job. Change orders are getting much more difficult to obtain and are usually the subject of lots of arguing and hard feelings. I look at ways in which I can per- form the work more efficiently than my competition. Do I have faster, better, newer equipment? Are my employees better trained, smarter, or better equipped for this particular task? Are we located closer to the job than the competition? Do we have a better source of supply or better materials pricing than the other bidders? All of these answers start to shape my final bid pricing. I once bid a large project which involved a complicated chemical for- mula based on part-per-million usages. Everyone in my office took a stab at it, and we all came up with different quan- tities required for the project. I finally located a university chemist through the Internet who helped determine the actual quantity needed. All of our com- petitors bid the project with the incor- rect chemical quantities, which caused large price variances. My bid was the lowest and was supported by an e-mail from the chemist we spoke with. I was awarded the contract; it proved to be the correct amount of chemicals, and very profitable. I also like to research and keep files on past bid results. They help determine where the market is and how competi- tors think and prepare bids. Some throw them together at the last minute, some price bids according to a set for- mula, and others price bids based on current workloads. Keeping track of past bid results can easily help determine the marketplace and where you need to be to win. Not long ago, I was involved with a multiyear municipal service contract. I knew there were only two other com- panies submitting bids besides myself. One was the incumbent and the other was from out of state. After the prebid meeting was over, I went to the city clerk’s office to obtain a copy of the incumbent’s contract. The term was for three years, as was the new contract being bid. I figured the out-of-state bid- der would have mobilization, per diem, and hotel charges to add to his final number. I correctly guessed the current contract holder was going to up his prices by 5% for each of the previous three years. My bid was submitted at 13% more than the current contract amount. We beat the incumbent contract holder by 2% and won a three-year multimil- lion dollar contract. Bidding is a constantly evolving pro- cess that requires you to be thorough, detail oriented, organized, and efficient. When reading bids or working on them, I avoid clutter and confusion. I like to close my door and concentrate on what I’m doing. If I need help, I ask for some- one to back me up while I prepare the bid. After I’m finished, I generally ask someone in the office to check the pack- age page by page. It never hurts to get a second set of eyes. Finally, bids and quotes need to be fast tracked for one reason or another. I keep a file of standard bidding require- ments at my desk. It has safety training certificates, insurance certificates, brief company profile, references from ven- dors and past customers, equipment lists, banking references, and anything else I think demonstrates we are both responsible and responsive bidders. JD JD Sullivan may be contacted via e-mail at admin@ worldwidedrillingresource.com In Memoriam Russell Bradford Banks, Jr. (1930~2013) Russell Bradford Banks, Jr. passed away April 9, 2013. He was born in Fayetteville, Georgia. He served in the U.S. Air Force during the Korean War, was the owner of Banks Well Drilling for 25 years, and a member of the Pine Ridge Baptist Church in Dallas, Georgia. Russell is survived by his wife of 50 years Carolyn; son Douglas (Cheryl); daughters Terri (Charles) and Connie (Harris); seven grand- children; four great-grandchildren; and two great-great-grandchildren. The management and staff of WWDR offer their condolences to Russell’s family and friends.