How do organizations manage Bid Amount versus Probability of Win?
Organizations typically have a target Probability of Win based on their perceived importance of the competition and their desired risk profile. A more aggressive (lower) bid amount will ensure a higher Pwin, but may lower profits or be more difficult to execute. A more conservative (higher) bid amount will lower the odds of winning the competition, but will provide a more profitable engagement if won. Typical values for PWin are in the 80-90% range.