A Culture Change
PAST PERFORMANCE Companies angling for federal information technology dollars in an environment where wins and losses hinge on past performance must take new steps to ensure customer satisfaction or pay the penalty, industry and government officials say. By Nick Wakeman With added pressure to establish a solid record of delivering projects on time and within budget,
PAST PERFORMANCECompanies angling for federal information technology dollars in an environment where wins and losses hinge on past performance must take new steps to ensure customer satisfaction or pay the penalty, industry and government officials say.By Nick WakemanWith added pressure to establish a solid record of delivering projects on time and within budget, companies are paying closer attention to their customers and bending over backwards to meet their expectations. Companies are also keeping closer tabs on their partners and moving quickly to resolve any contractual disputes.
"Sometimes you have that fear of getting blown out by the 800-pound gorilla, but past performance can be an equalizer," he says. Knowing past performance is being verified also serves as a reminder to be truthful in proposals, industry officials say. "You have to be more realistic about what you bid on and what you say about yourself," says AverStar's Burton. "It makes people think twice, and that's healthy." While all the agencies are looking for similar information about potential contractors, ranging from how well companies meet schedules and budgets to how quickly they resolve problems, there is a variety of ways in which past performance data is collected, industry officials say. "Some agencies want a lot of references, others don't," says Burton, who wonders about added burdens on customers that must fill out multiple forms for the same contractor. And that paper burden is a double-edged sword. "It is quite a process," Connor says. "Each solicitation is a new day."
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isn't enough. "Things need to be followed up on and acted on."
Barbara Connor -Bell Atlantic Federal |
Paul Lombardi -DynCorp |
Phil Odeen -TRW |
A Culture ChangeIt may seem hard to believe, but past performance was a critical factor in Phil Odeen's decision to put up his old company, BDM International Inc., for sale. Odeen, now executive vice president and general manager of TRW Inc.'s systems integration group, says he got a wake-up call in spring 1997 when the former McLean, Va.-based integrator lost a contract he thought it should have won easily. Instead of walking away with the prize, which Odeen declined to name, the spoils went to a larger competitor with a broader base of past performance references to give the agency. "It was a shock to the system that maybe [at $1 billion a year] we weren't big enough," says Odeen. The agency's request for proposals had asked potential contractors for 50 references, which the larger company easily supplied. "We were smaller and we had to really stretch," says Odeen. The loss triggered much soul searching at BDM about where the government market was headed and what it would take to compete. And though past performance wasn't the only reason for BDM to link up last December with TRW of Cleveland in a $1 billion deal, it was a major factor, says Odeen. The combined company created a $3 billion a year systems integration unit. |