Case C Expand II: Commercial Realism and BAFO Discipline
Case C · Expand II (parent: Bid/no-bid overview). Translate Conditional pursue into commercials that are deliverable—or walk away cleanly.
1. Commercial models under uncertainty
| Model | Fit for this RFP |
|---|---|
| Time and materials | Discovery and uncertain scope |
| Capped T&M | Phase 1 with ceiling |
| Fixed price | Only after clear deliverables and stable deps |
| Milestone-based | Stage payments on discovery → design → pilot |
| Outcome-linked | Avoid until measurement and client levers exist |
| Managed / subscription | After a working service exists |
2. Guarantees and liability
Decline or tightly qualify: guarantees that AI will cut X% cost regardless of adoption, data quality or process change; unlimited liability for model outputs; training on client data without residency clarity.
Exchange concessions: narrower scope for lower price; longer commitment for discount; faster client decisions for faster delivery; stronger assumptions for any fixed-price element; change control for extra work.
3. Conditional pursue offer (example)
Paid 4–6 week discovery and architecture / RAI design sprint:
- Problem reframe and journey risk tiering
- Data/residency and knowledge readiness assessment
- Evaluation approach and control design
- Options (pilot vs transform) with rough order of magnitude
- Go/no-go recommendation for Phase 2
If procurement requires a full transformation proposal with outcome guarantees and no discovery gate → no bid, documented with win/loss hygiene for the account team.
4. BAFO discipline
Final solution, price, team, contract position, differentiators, feasibility, approvals.
Assess every clarification for scope, cost, timeline, risk and contract impact—do not absorb unpaid scope.
Preferred bidder still needs MSA, SoW, DPA, security schedule, SLA, change control.
5. Metrics beyond win rate
Pursuit cost vs win quality · assumption accuracy post-mobilisation · margin after discount · risk incidents · whether Conditional offers convert to healthier Phase 2 work.
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