Recompete Strategy: Defending and Attacking Incumbent Contracts

A recompete occurs when a contract ends and the government issues a new solicitation for the same or similar work.

Why recompetes matter:

• Critical for incumbent contractors (defend revenue)
• Opportunity for challengers (unseat incumbent)
• High stakes (existing work, workforce, relationships)
• Win rates differ significantly (incumbent vs. challenger)

Types of recompetes:

• Full and open — Open to all qualified bidders
• Set-aside recompete — Limited to small business, etc.
• Task order recompete — Under existing IDIQ

Incumbent win rate reality:

• Incumbents win ~70-80% of recompetes
• But not automatic — 20-30% lose
• Complacency is the enemy

The incumbent advantage:

• Deep customer knowledge
• Proven past performance
• Existing workforce
• Operational knowledge
• Relationship continuity

How incumbents lose:

• Poor performance (CPARS)
• Price too high
• Complacent proposal
• Changed requirements favor others
• Customer wants change
• Better offer from challenger

Defense strategy elements:

• Outstanding performance throughout contract
• Strong customer relationships
• Continuous improvement and innovation
• Competitive pricing
• Serious proposal effort

Don't rest on past performance:

• Proposal must be excellent
• Can't assume win
• Must compete on merit

See: Incumbent Capture Guide

Unseating an incumbent:

Challenging an incumbent requires deliberate strategy.

How challengers win:

• Incumbent performance problems
• Significantly better price
• Compelling technical innovation
• Superior team or approach
• Customer ready for change
• Better socioeconomic fit

Challenger intelligence:

• Incumbent performance (CPARS, reputation)
• Customer satisfaction level
• Incumbent pricing (if discoverable)
• Requirements changes
• Incumbent vulnerabilities

Challenger positioning:

• Build customer relationship early
• Demonstrate relevant experience
• Offer compelling value
• Plan for transition
• Price competitively

When to challenge:

• Incumbent has known problems
• You have significant advantages
• Customer is accessible
• You can price competitively

2+ years before recompete:

• Know when contract ends
• Begin positioning
• Build/maintain relationships
• Track incumbent performance

12-18 months out:

• Intensify capture activities
• Engage on requirements shaping
• Finalize team strategy
• Assess competitive position

6-12 months out:

• Draft RFP or final solicitation expected
• Solution refinement
• Pricing development
• Proposal preparation

Post-RFP:

• Proposal development and submission
• Orals or discussions (if any)
• Final pricing refinement

Timing matters:

• Early engagement is critical
• Late entry significantly disadvantaged
• Incumbents should never let guard down

For incumbents:

Demonstrate smooth transition approach:

• Continuity of operations
• No disruption to mission
• Retain key personnel
• Leverage existing knowledge

For challengers:

Credible transition plan essential:

• Detailed phase-in approach
• Personnel recruitment strategy
• Knowledge capture plans
• Risk mitigation

Incumbent personnel:

• Key staff often want to stay with work
• Retention planning for both parties
• May be required to offer employment
• Service Contract Act implications

Transition risk:

• Major government concern
• Address thoroughly in proposal
• Mitigate with detailed plans
• Past transition experience helps

Incumbent pricing considerations:

• Current pricing is known (to you and others)
• Price increases scrutinized
• Must remain competitive
• Efficiency gains expected

Challenger pricing strategy:

• Often must undercut incumbent
• Can't always know incumbent's price
• Price too low = sustainability concerns
• Must cover transition costs

Price to win considerations:

• Competitive analysis
• Customer price sensitivity
• Best value vs. LPTA dynamics
• Sustainability of pricing

Realism:

• Don't buy in at unsustainable price
• Consider total contract value
• Plan for efficiency improvements
• Price must be credible

See: Price to Win Guide

Incumbent proposal approach:

• Highlight proven performance
• Show continuous improvement
• Demonstrate deep understanding
• No disruption message
• Innovation and value-adds
• Don't be complacent or arrogant

Challenger proposal approach:

• Fresh perspective and innovation
• Address transition thoroughly
• Relevant past performance
• Compelling value proposition
• Risk mitigation

Avoiding incumbent pitfalls:

• Weak proposal ("they know us")
• Stale approach
• Higher prices assumed acceptable
• Ignoring competition

Evaluation dynamics:

• Evaluators may want fresh look
• Past performance weighs heavily
• Price matters even for incumbents
• Technical approach must be current

If you win the recompete:

• Execute excellent transition (if new)
• Deliver on proposal promises
• Start positioning for next recompete
• Maintain strong performance

If you lose as incumbent:

• Request debriefing
• Understand what happened
• Support professional transition
• Maintain relationships
• Learn for next time

If you lose as challenger:

• Get debriefing
• Understand gaps
• Consider for future opportunities
• Build on relationships developed

Protest considerations:

• Grounds for protest?
• Strategic implications
• Relationship impacts
• Get legal advice

See: Debriefings Guide