Win rates: industry average = 30%
Every so often a Member asks us: what is the industry average win rate? Here is a new look at average federal win rates using the FY07 FPDS data.
When IT work is competed and there is more than one bidder, the average win rate is 30%. How does your company fair?
What do you think about these rates?
| Category | Win rate |
|---|---|
| All FY07 federal spending (approx. 50% had only 1 bidder) | 65% |
| IT spending | 62% |
| IT spending and competed (competed = full and open, competitive delivery order, or full and open after exclusion of sources) | 49% |
| IT spending and competed and > 1 bidder | 30% |
Methdology by example:
Assume total spending was $100. If $50 worth of spending had 2 bids, and $50 worth of spending had 10 bids, the win rate for the first $50 was 50%, and 10% for the second $50.
The average win rate across the total $100 = 1/2*50% + 1/2*10% = 30%.
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