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 EP1. 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 Proposal6. 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 Overhead9. Tightly Budgeted 10 Closely Monitored by Sr Mgt.

Characteristics of Proposal Project

Characteristics-- identical to ProjbutMuch “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 ProposalsTime 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 Owner’s 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 Proposals6. 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 PropProp 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 ProposalsIdentify Comy’s 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 ProposalAfter 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) RFPb) Info by site visits, c) Prebid conferences,d) Contact with Owner/other knowledgeable sources.

PD Indicate:a) Limits of Projb) Specify work items by Owner (work not incl in contractor’s 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 Repc) 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 Org5. Proposed Proj Org

Details Responsibility of Key Member

Org Chart P Team Std Proj org mod to:

a) Best respond to particular orgb) 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 Estib) 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 Using“Std Cost of Accounts” for Contractor

Unless “Owner’s Code of Accounts”.

Consolidtd Esti Reviewed by:

a) Sr Project membrb) 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 contractor’s office.

Compensation

Fee: RFP defines fee structure desired by owner.

a) Cover “Only Profit to Contractor”

b) All or Many of contractor’s 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 contractor’s 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 Contractor’s 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 owner’s offices.

Best to follow “Specified Format” –

ConclusionSuccessful 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.