Proj Proposal

October, 2008
 Project Proposals

Most Proj
undertaken by org,
Most changes made
within org
Begin with
proposals.
 Project Proposal,

Set of Documents submitted for Evaluation

Document Submitted to Another Enterprise

Proposing a Business & Proj arrangement.

Kinds of document
Get you or
Your Org Approved or hired to do a Proj
 Categories : Invited & Un-invited.
1.Invited:
A)"Info for Bid" Call for Tender Standard
Govt/Corpn Post Request from Potential
Customer.
Asking Contractors to bid.
Competing against all bidders
B). RFPs
Competing against few Client
as suitable.
RFP - More gen Statement of Goals.
-Customer Req suppliers to create their
own Designs
-Describe How will achieve Specified
Goals.
Contract to Supplier - Offers Most
Persuasive Proposal

Bidder's Document Stipulates:

A) Style of Proposal
B) info to cover.
RFP & Call for Tender know
A) Svc/prod wanted
B) Competing against Other People
Who Bid.
Select Best of all Bidders.

2. Un-Invited: Originates from Pot

Supplier.
U hv idea for a Prod/Svc of Benefit to X.
U Provide Svc/Dev Prod
Xchge for Funding/consideration.
 Un-Invited Propsal
Proposing Some type of Business
Relationship
Potential Customer not formally RFP,
Supplier invited to submit Proposal after
two org met & discussed Proj informally.
 Business Plans
Detailed documt how yr
business is set up.
Business Structure
Products & Svs
Mkt Research & Mkg Stratgy
Budget & 5 yrs Fin Projections .
Start ups & existing businesses req
Developing Req lot of research
& No Crunching.
 BP - Workable strategy to follow
Blueprint to success
Business Idea to Business Success.

Ways to Raise Funds

Business Loan,
Venture Capitalist,

 Real Proposals.
Offer/bid to do a certain proj for someone.

Convince Client : Svc/Product

Potentially Valuable &
You or your company is
Credible & Stable.
Proposal : well researched,
Well written & a Reasonable budget.
Spend time on Document
You'll be ahead of People
 Proposal Contain info
Enable audience To decide:
Whether to Approve Proj,
or hire you to do work, or both.

For Successful Proposal

Put yourself in Place of audience

Think what sorts of info they
Need to feel confident about you for proj.

Internal Proposal. (IP)

Purchase a new m/c
Restructure a dept
Less elaborate document
External Prop (EP)
Formal & Detailed
CDA Police Replaces Cars,
Ask bids-auto mfr to submit EP
1. Detailing Cost,
2. Tech Spec
3. Del Schedules.
 Writing the External Proposal
Myth:Proposal writing Ltd to govt
contractors.
-Auto mfr buys engines
-Spark Plug Org buys steel
Most product/services purchased on a
contractual basis.
 Issues During Preparation Proposals:

1. Which Proj ? bid on?

2. Org & Staffing -Prop Prep Process?
3. Efforts on Prop Prep for Bids?
4. Bid Prices?
5. Bidding strategy? Is it ethical?
 Most contracts Awarded
on Basis of Proposal submitted
in Response to inquiry
issued by owner.
Commonly Engg,
Procurement, & Construction
(EPC) responsibilities.
Proposal of Intensive Proj .
Headed by Proposal Mgr
Prop-Proj Mgr (PPM)

PMgr to PPM both hv.

Common Attributes
Skills-of PPM
Rapid & Effective Writing
Characteristics of Prop Proj

1.Hi priority, short-duration

efforts.
2. Completed to Schedule
Requirement .
 Characteristics of Proposal Project Contd
3. Owner Specify:
Format of Props
Preference Location
You may suggest alternate cost-effecting project.
Specs Preferred payment /Alternates suggested
Construction Labor Arrangement
Presentation of Requested info
 Characteristics of Proposal
6. Proposal writing is a project itself:
7. Require Team of Reps:
Sales
PM
Technical & Sp Functions.
hv responsibilities over & above proposal
Workloads considered

8. Costed against Corporate Overhead

9. Tightly Budgeted
10 Closely Monitored by Sr Mgt.
 Characteristics of Proposal Project
Characteristics-- identical to Proj
but
Much Shorter Schedule
& Resource Constraints

So Difficult to Complete :
-On Schedule
- Within Budget.

To Produce Competitive Proposal meets Req of

both side, we must consider these charististics.
 Preparation for Future Proposals
Time Restraints
Repetitive Nature of Data:
Necessitates Collection max possible info for Proposal in
advance.
1. Propol P_ Mgr in Advance.
Former Pmgr:
Verbal/written Skills
Proper Personality Can Survive in:
Pressure Cooker Envirt of Proposal Prep.
Hi Tolerance for working
Tight schedules,
Stringent Budgets
Borrowed Per,
Object of Criticism Sakoon Dilwanz
 Preparation for Future Proposals Contd
2. Proposal Publication Staff
Individuals skills in:
Editing,
Use of word Processing
Preproduction Equipment
Graphic Arts Capability.
Work Effectively in various stages of to meet schedules.
3. Technical Info Data Base
Types of Proj delivered so far
FS,
Engg Proj
Full-Scope Proj
 Preparation for Future Proposals
4. Standard Scopes of Svcs
Readily Customized for Particular Proj .
Info of Proj Similar
But Req Conformance:
With Owners Reqts
Facility of Location.

5. Comprehensive Definition of Various Levels of Efforts

Associated with Producing Cost Esti
Imp for dev Proposals for F.S.
 Preparation for Future Proposals
6. Devoted Work Plans
for Various Basic Types of Proj.

Gen info Modif to Conform with Plans for Specific Proj.

7. Data Bank - Helps to standardize Commercial Cost with

Listings which define:
Costs incld Overhead
Those which are not .
Helpful in Reimbursable Contracts to Control Changes
to std Checklist
& Resultant Changes in Reimbursable Unit Costs.
 Preparation for Future Proposals
8. Qualification Material
Updated frequently in Standard Formats e.g:
Proj Performance data, schedule & costs
Descriptions of Past Projects
Resumes of key Personnel
Write-ups on support areas such as:
Project Controls
Procurement Procedures
Material Management
Quality Assurance Practices
 Preparation for Future Proposals Contd
9. Typical Write-Ups: For Parts of Proposal.
Modified for:
RFP or Inquiry docu, include:
Introduction
Proj org
Schedule
Proj Controls
Compensation
 Pre-Proposal Effort for Spfic Prop
Prop Start with Indication of:
a) Bid List
b) Preliminary info available on Proj.
Early effort incld:
Preli Assignments Made Based when:
RFP Rel
Prop Due Date
Assignments Incl:
Prop P Mgr
P Mgr Proposed to head project,
Prop Publication & Tech Sp Per.
Lead Estimator/Scheduler,
Key Technical Per
Proc & Construction Rep
 Pre-Proposal for Specific Proposals
Preli Proposal Plan, Schedule & Budget
Blocked out.
Proposal Plan-Outline of Prop & Preli Assigts
Schedule indicates:
Completion of preli drafts,
Job-hr & Cost estimates
Final Draft Dates,
Nec Dates for Approval,
Pub & Del Dates.
 Pre-Proposal for Specific Proposals
Identify Comys Str/Weaknesses to handle:
Tech Aspects of Proj

C/Out Rigorous assessment of Coy

Plan Immd/specific Actions to Enhance:

1. Corporate Capability
2. Background info to cover these critical areas.
 PROPOSAL EFFORT

1. Assignment of Proposal Team

Members
When Bid Confirmed
Assignment of Proposal Team Formalized.
Involve those who participated in
Pre-proposal
 2. Kick-off Meeting (KOM)
Proposed-PMgr meet- Prop PMgr befre Kick-of to:
a) Coord Proj Planning
b) Communicate Proj Strategy & Philosophy

Proposal Team Join at KOM.

At this Time:
1. Task Assignments Done
2. Corresponding Schedules Made.
 Kick-off Meeting (KOM)
At KOM:
Tech+Legal +Compensation consdrtion
a) Reviewed
b) Responsibility made for:
1) Propsd PMgr
2) Propopsl Proj Mgr
3) Propsal Pub Mgr
 Kick-off Meeting (KOM)

Proposed Proj Manager Responsibility

Define Scope of work
Proj Objective Setting
Proj Plan & strategy
Description of Project Org
Dev of organizational Chart
Identi special & unusual svs req
Proj Schedule showing service performed
in time sequence determined by work plan
Estimate of job-hours for project
Cost Estimates by RFP
 Kick-off Meeting (KOM)

Proposal Project Manager

Set Proposal Schedule: allowing sufficient time for
preparing, reviewing & editing draft material; for
reviewing & approving final proposal; & time required for
printing & delivering proposal.
Establish Proposal Job-hour & Cost Estimates
Prepare first draft of letter of transmittal & all sections of
proposal except qualification (summarized later)
Specify qualification material needed
& review avail qualification material (what is appropriate &
identify what must be developed)
Set up master dummy book in exact order that:
final proposal is to be submitted.
 Kick-off Meeting (KOM)
Proposal Publication Editor:
Edit Resumes

Develop Qualification Section

Legal Review of RFP

Establish Req for:

Graphic Arts work,
Covers, Tabs, Charts, & Illustrations.
Track progress of Prop to assure:
Sufficient Time available for Printing
Assembly of Proposal.
 3. Preliminary Review of Proposal Text
Material double spaced Typed,
Wide margins
Page identified by section
Page no.
Date of issue/Rev.
Typed Drafts Chkd against Original 2 verify:
Nothing Omitted
Drafts Sent to interested parties incl:
Contract Draft, for info
Editorial Changes & Mod Retyped draft:
Posted on sheets contained in Master Dummy.
 4. Final Review
Final Text:
All changes incorporated into Typed Text,
Now submitted for:
a) Review of Ops Mgt
b) Final Legal Review.
Flag Major changes for:
Quick Signoff
 5. Publication & Signoff
After Review
After Any addtl Changes
Proposal is Printed.
Camera-Ready Chkd against Dummy Book
to Cfm:
- Changes Incorporated,
- Copies Reproduced,
- Collated, & Bound.

Final aprval given by signoff set by Sr Mgt.

 6.Delivery of Proposal
After Signoff
Proposal is del in Accordance with:
a) Schedule
b) Method Estab

by Owner &/or Established Plan.

 Typical EPC Proposal Contents
Content of Cost Reimbursable Proposal
Engg, Procrmnt & Construction (EPC) Svs:

1. Introduction & Summary:

- RFP Conditions sumrzd
-Gen Apch by contractor indicated.
-Recap Sec of Prop
-Helps to Clarify Contents to:
- New Readers
- Intro method for material presentation.
 Typical EPC Proposal Contents Contd
2. Project Description (PD) :
Source:
a) RFP
b) Info by site visits,
c) Prebid conferences,
d) Contact with Owner/other knowledgeable
sources.

PD Indicate:
a) Limits of Proj
b) Specify work items by Owner
(work not incl in contractors scope of
svcs)
 Typical EPC Proposal Contents Contd
3. Scope of Services:

What Svc Contractor Will Provide.

-Svc Performed
-Docu Produced.
-Svc Defined not Open Ended
(even in Reimbursable Cost Prop)
Svs Listed According to:
Div of Proj Org Assigned Responsibility
for that work.
 Typical EPC Proposal Contents Contd
4. Work Plan (WP) & Schedule:
WP Delvped:
a) Stated Obj of owner
b) Defned by Sales Rep
c) Obj of contracting firm

Plan consists of:

a) sequencing work activities
b) Development of how they will be executed.

Assumptions: Spelled Out Carefully.

WP Presented in:

Graphic form showing interrelationship b/w various activities.

 Project Org
5. Proposed Proj Org
Details Responsibility of Key Member

Org Chart P Team

Std Proj org mod to:
a) Best respond to particular org
b) Interfaces reqd by conditions of RFP.

What Type of Org Best suited to Job Reqt

Owner like Task Force To:

a) Cont over Time Charges
b) Per assignments.
 5. Project Organization Contd
-Interface with Supplier of Techgy
Defined
Techn Review Responsibilities
Assigned.
-Incl CV of key Per(Two pages)
Indexed or in Alphabetical order
Place in Appendix.
 6. Estimates, Hours, Cost

Esti Prep Based Strictly:

a) Scope of Svc
b) Work Plan
c) Proposed Schedule.

Consolidate Various esti from Sources

Charged
Final Cost esti prepd for Work.
Confidential Cost Data Entered in Esti by:
a) Corporate Esti
b) Fin grp.
 6. Estimates, Hours, Cost
Manning Chart showing:
No of People by Discipline
By Pay Grade.
Salary Ranges for each Pay Grade.

Cost Esti incl:

-Direct salaries Techn Per
-Non-Technical Per
-Indirect Costs (Travel, comm,
computer use, & reproduction).
 6. Estimates, Hours, Cost Contd
Preli Esti of Total Proj Cost Reqd to:
Chk Validity of Cost Esti for Svs.

Esti UsingStd Cost of Accounts for

Contractor

Unless Owners Code of Accounts.

Consolidtd Esti Reviewed by:

a) Sr Project membr
b) Rep of functional Mgt Delegated auth
 7. Compensation
After esti Reviewed
Commercial Terms Finalized by Adding Discretionary Fig:
a) Burdens,
b) Contingencies,
c) Overlays,
d) Fees reqd by format of bid.

Reimbursable-Type Proposals Specify Compensation:

A) Thru Payment
b) Costs Incurred in Performance of Svc
C) through proposed treatment of fee.
 7. Compensation Contd

based upon following elements of reimbursable costs:

Salaries & wages together with stated percentage to be

added to cover payroll burdens

Commercial terms for compensation for job shop or

contract personnel who are not regular employees of
contractor

Stipulated percentage to be applied to direct costs to

cover corporate overhead for such items as non-
reimbursable selling, administrative & management
costs of contractor organization
 7. Compensation
Out-of-pocket costs for outside services

Costs incurred in issuing purchase orders not otherwise

reimbursed

Payment of traveling & living expenses for personnel on

assignment out of contractors office.
 Compensation

Fee: RFP defines fee structure desired by owner.

a) Cover Only Profit to Contractor
b) All or Many of contractors indirect costs.

Prep of chklist of Reimbursable Costs Imp.

Proposed chklist if not Proper Potential Effect on

Profitability of Work.
 7. Compensation
Payment:
Schedule Terms - Effect on contractors CF

Advance Payments Timely received

Contractor not financing from Borrowed Money

Maj Eqpt & Build materials not Purchased by contractor.

Change Order Formula -be included in Propsl.

 Compensation Contd

Qualifications:
Strengthen Confidence to Contractors
capability in the Mind of Owner.

Material from Old Files of Contractor.

Reviewed to make sure info presented:
Accurate,
Pertinent
Forceful.
 Modifications to Standard Proposals
Many owners hv Specific Format Reqt
-Contractor Depart from Std Proposal Format.

Purpose: To simplify Proposal Evaluation

Process in owners offices.

Best to follow Specified Format

 Conclusion
Successful mgt of propl Req:
a) Qualified per to propl Effort;
b) Advance Prep of Sp Org
c) Poposl info & data B4 Receipt of RFP;
d) Timing expected from Prop Effort
e) Close coord b/w Prop Mgr, PMgt, FM &
Sr Mgt
f)Adherence to Realistic Publction
Schedule.
 Conclusion

Wining proposal requires ability to

identify those things owner really needs,
to respond in sensitive manager to this
concerns, & to convince him that your
firm is highly qualified to provide best &
most economic job.