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Abstract

The Request for Proposal (RFP) process is used extensively for the procurement of products and services internationally by government and industry. The United States Government (USG) is the largest customer in the world, and yet, this important procurement process has been forgotten in the project management literature. The extant literature has concentrated on the identification of project risks and the negative effect risk has on the performance of a single project. This study expands the risk beyond a single project to include the risk that one project may have on the risk and performance of another project, particularly between the development of the proposal in response to a RFP and the execution of the corresponding project for which the proposal becomes the baseline. Once the proposal development has been completed, the proposal team may be assigned to the next available project while the customer decides if the proposal is to be executed. There is no guarantee that the proposal development team will also be part of the project execution team once the customer has accepted the proposal and the project execution begins. Transactive Memory Systems (TMS) theory has shown that a disruption of a project team may decrease the team’s productivity suggesting that a project’s risk may be reduced, therefore increasing performance, as the number of members of the proposal development team who also work on the project execution team increases. The findings show that as the number of team members that worked on both the proposal development and the project execution increases, the negative relationship between the project’s requirements risk and process performance is reduced. These findings have practical implications for managers by suggesting that project performance can be increased by ensuring that more members of the proposal development team are also members of the project execution team.

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