Exploring AI

Choosing the right AI tool for your business

Learn how government contractors can choose the right AI tools to boost efficiency, speed up proposal responses, and tailor solutions for high-stakes federal contracting needs.

9 minute read

In today’s fast-paced business environment, government contractors are increasingly looking for ways to streamline processes, reduce proposal response times, and maximize efficiency. One of the most promising solutions is using generative AI tools to assist in formulating solutions and writing proposals. But choosing the right AI tool for your organization isn’t as simple as picking the most popular platform. It requires a careful evaluation of your business needs, particularly in the high-stakes world of federal contracting. Here, we break down the key characteristics to consider when selecting the right AI tool for your business development (BD) and proposal operations. 

Key characteristics of AI tools 

AI tools that support business development and proposal writing share common characteristics. Understanding these features will help you evaluate which tool best suits your organization. 

Domain-aware capabilities 

An AI tool’s ability to understand industry-specific terminology and regulations is critical. For federal contractors, it’s essential that the AI tool can navigate jargon, federal regulations, and procurement mechanisms such as General Services Administration (GSA) schedules and Federal Acquisition Regulation (FAR) clauses. A domain-aware AI will generate accurate and relevant outputs, saving time and reducing the need for constant rewrites and edits. 

Answer models (GPT and similar) 

Many AI tools are powered by large language models (LLMs) like GPT (Generative Pre-trained Transformer), designed to process and generate text based on provided data. These tools offer a flexible way to create proposal narratives, summaries, and responses. By leveraging GPT-based models, AI tools can assist in drafting, structuring, and enhancing the content of your proposals, speeding up the process and allowing your team to focus on customization and refinement. 

Text generation and repository functions 

Generative AI tools rely on repositories of past data to create new content. For government contractors, this data includes past proposals, corporate capabilities, resumes, and performance information. A well-designed AI platform continuously ingests and refines data, expanding its repository as your company grows. This capability enables the tool to pull from relevant information and generate consistent responses, particularly for repetitive sections like corporate experience or team resumes. 

Key differentiators 

While many AI tools share common characteristics, certain features set them apart. It’s important to consider these differentiators based on your organization’s specific needs. 

Tailored outputs 

AI tools differ in their ability to generate content tailored to the various phases of the proposal lifecycle. For example, some tools can create compliance matrices by cross-referencing solicitation requirements with your proposal draft, while others specialize in developing cost estimates or suggesting win themes based on past performance data. Tools that generate specific outputs for executive summaries, technical narratives, and SWOT analyses provide greater value by saving time and improving proposal quality. 

Document review and manipulation 

AI tools can do more than generate content—they can review and manipulate documents to ensure compliance with federal requirements. Tools with document review features can identify sections that don’t align with solicitation criteria or suggest edits for improved readability, coherence, and persuasiveness, all while ensuring compliance. This allows proposal teams to focus on higher-level strategy rather than getting bogged down in line edits. 

Collaboration capabilities 

AI tools that facilitate team collaboration can streamline the proposal development process, especially when multiple stakeholders are involved. Look for AI tools that support real-time collaboration, enabling team members to work on the same document simultaneously, make edits, leave comments, and track changes. Some platforms also integrate with project management tools, providing real-time updates and keeping the team on track. 

Templates and formatting 

Many federal proposals have strict formatting and organizational requirements. Some AI tools come equipped with customizable templates that adhere to these guidelines, saving time on reformatting documents. Tools that provide pre-built templates for federal proposals ensure consistency and compliance across proposals while reducing the workload on your team. 

Security features 

Security is paramount for government contractors. Ensure that the AI tool you choose offers robust security features such as encryption, user authentication, and access controls. These measures help protect sensitive data and ensure that only authorized personnel can access or edit proposal documents. 

Hosting and security considerations 

Given the sensitivity of information involved in government contracting, security is a top priority when selecting an AI tool. Contractors must ensure that the platform they use adheres to federal security standards and offers hosting options that align with their needs. 

NIST compliance 

Any AI tool used by federal contractors must comply with National Institute of Standards and Technology (NIST) security standards, which protect data from cyber threats. Check if the platform is also compliant with the Federal Risk and Authorization Management Program (FedRAMP), which standardizes security assessments for cloud products. 

Hosting options: Cloud, on-premise, or company-hosted 

AI tools can be hosted in the cloud, on-premise, or on the contractor’s own infrastructure. Each hosting option has pros and cons: 

  • Cloud hosting: This option is scalable and easy to manage since the vendor handles updates and maintenance. However, it may raise security concerns, particularly if you handle Controlled Unclassified Information (CUI). 
  • On-premise hosting: This provides more control over data and security, making it easier to comply with federal requirements, but it requires significant resources for hardware and IT support. 
  • Company-hosted: Some contractors opt for company-hosted solutions, offering the flexibility of cloud hosting with the security benefits of on-premise solutions. While this option may require a higher upfront investment, it allows more control over data and security protocols. 

Handling Controlled Unclassified Information (CUI) 

Federal contracts often involve CUI, which must be handled securely. Ensure that the AI tool can manage CUI in compliance with relevant regulations, such as the Defense Federal Acquisition Regulation Supplement (DFARS). The ability to securely store, process, and transmit CUI is crucial when selecting a tool. 

Cost considerations 

Investing in AI tools for BD and proposal writing can be expensive, so it’s important to evaluate the associated costs carefully. 

License packages and implementation fees 

AI vendors typically offer various licensing models, ranging from per-user licenses to enterprise-wide packages. Consider how these models fit your organization’s size and usage. Also, be mindful of implementation or setup fees, which may be necessary to get the system operational. 

Hosting fees and scalability 

Cloud-based solutions often come with ongoing hosting fees, which may vary based on the volume of data processed or stored. Ensure the platform offers scalable options to add more users or data without incurring significant additional costs. 

Hidden costs 

Be aware of hidden costs such as charges for additional support, customization, or updates. These costs can add up quickly, so clarify all fees with the vendor before finalizing any agreements. 

Platform use vs. user interactions 

Some AI tools charge based on the number of users or interactions, while others base pricing on data volume or task complexity. Choose a pricing model that aligns with your organization’s typical usage to avoid unexpected costs. 

Selecting the right AI tool for your BD and proposal operations is a critical decision that can significantly enhance efficiency and competitiveness in federal contracting. By focusing on domain-aware capabilities, tailored outputs, security requirements, and cost considerations, you can make an informed decision that aligns with your organization’s needs and goals. With the right AI tool, contractors can streamline their proposal processes, improve collaboration, and maintain a competitive edge in a fast-paced, regulated market. 

Unanet Proposal AI stands out as an ideal fit for government contractors by addressing many of these crucial factors. Its domain-aware capabilities allow it to understand and process federal regulations and procurement mechanisms, making it adept at generating accurate, compliant, and tailored proposal drafts. Powered by advanced AI models, it can produce narratives and summaries quickly, saving time and reducing proposal response cycles. Interested to learn how it can help? Schedule a demo today.