Public Sector Return On Investment

Focus On Public Sector Return On Investment

Gaining An Edge:  Always present the benefits of your solution from the perspective of the client.  Government client’s interests go beyond return on investment to public sector return on investment.  Show the client you understand the full bounty of the benefits you are providing.

Capital Expenditure Requirement

Per Exhibit 300 and Circular A-130, which represents OMB’s policy and guidance on the management of information technology, an agency must “Demonstrate a projected return on the investment” as part of the selection of a capital expenditure.  A capital expenditure includes both assets and services that have an estimated life of two years or more.

No doubt you strive to show, in proposals or otherwise, how your method, result, or outcome is better, faster, quicker or smarter, than those of your competition.  Gain an edge by fully defining and quantifying the solution or outcome.  For me, I like to use public sector return on investment.  Few companies do this and even fewer have the insight to draw this quantification.  But you will separate yourself from the pack by drawing this distinction.  When you think about it, the government wants to pick the solution with the best return on investment.  It may well be the lower price but the more prudent and seasoned government investors will select the deal that has the highest return on their investment, fully recognizing the risks of delivery.  That is if the price is affordable.

Public Sector Return On Investment

Consider a proposed project whether to build a toll highway.  The decision would logically be based on profit – is the projected revenue from the toll highway more than the cost of construction and maintenance?  But consider the other myriad benefits that can be realized from the toll road.  These are what I call Public Sector Returns On Investment.  Traffic will be reduced, or thoroughfare increased on other roads, thus improving commerce.  There will be fewer accidents, perhaps less loss of life, by reducing the congestion on the affected roadways.  There will also be increased employment.  These are public sector benefits that greatly enhance the value of a project, or capital asset.

Step back and think about the project or solution you are proposing.  Call out the benefits relative to the full suite of returns.  Most important, characterize these benefits from the perspective of the client.  Show how the agency will benefit but also how agency personnel will benefit.  Show how the agencies’ clients will benefit in terms of cost, time, and level of effort.  Go beyond these benefits and describe how agencies and agency clients will now have additional time or funds to conduct other projects.

Go One Step Further:  Consider adding a section in your proposal citing (Public Sector) Return On Investment from Form Exhibit 300.  This is indeed what is being requested of the government so make their job easier to select your proposal.