Question

instructions: please include sources

3)Provide an example of when a contractor should bid and when a contractor should not bid. (one example each). Explain why bid/no-bid decision must be taken in above examples.
4. What are the three major sections of a proposal? Why are these three elements important? nstructions: please include sources

Answer 1

Answer 4:-

Proposals are often organized into three sections: technical, management, and cost. The amount of detail the contractor includes will depend on the complexity of the project and the contents of the RFP.

A. Technical Section—the objective of this section is to convince the customer that the contractor understands the need or problem and can provide the least risky and most beneficial solution. The technical section should contain the following elements:

1.   Understanding of the problem—the contractor must show the customer that they thoroughly understand the problem to be solved.

2.   Proposed approach or solution—the proposal should describe the approach or methodology that would be used in developing the solution.

3.   Benefits to the customer—the contractor should state how the proposed solution or approach would benefit the customer, including cost savings; reduced processing time; reduced inventory; better customer service; reduced errors; improved safety conditions; more timely information; reduced maintenance, etc.

B. Management Section - the objective of this section is to convince the customer that the contractor can do the proposed work (the project) and achieve the intended results. The management section should contain the following elements:

1.   Description of work tasks—the contractor should define the major tasks that will be performed in carrying out the project.

2.   Deliverables—the contractor should include a list of all deliverables that will be provided during the project, such as reports, drawings, manuals, and equipment.

3.   Project schedule—the contractor should provide a schedule for performing the major tasks required to complete the project. The task schedule can be given in any one of several formats: a list of tasks with their estimated start and completion dates, a Gantt chart (covered in Chapter 9) or a network diagram (covered in Chapter 9).

4.   Project organization—the contractor should describe how the work and resources will be organized to perform the project. An organization chart (covered in Chapter 7), resumes of the key people, and a responsibility matrix (covered in Chapter 9) are often helpful.

5.   Related experience—the contractor should provide a list of similar projects it has completed and the dollar value of those contracts.

6.   Equipment and facilities—the contractor may want to provide a list of the equipment and special facilities it has, in order to convince the customer that it has the necessary resources.

C. Cost Section—the objective of the cost section of the contractor proposal is to convince the customer that the contractor’s price for the proposed project is realistic and reasonable. The cost section usually consists of tabulations of the contractor’s estimated costs for such elements as the following:

1.   Labor—the estimated costs for the various classifications of people who are expected to work on the project. It might include the estimated hours and hourly rate for each person or classification.

2.   Materials—the cost of materials the contractor needs to purchase for the project.

3.   Subcontractors and consultants—when contractors do not have the expertise or resources to do certain project tasks, they may hire subcontractors or consultants to perform those tasks.

4.   Equipment and facilities rental—sometimes the contractor will have to rent special equipment, tools, or facilities solely for the project.

5.   Travel—such as airfare, lodging, and meals if trips are required during the project.

6.   Documentation—some customers want the contractor to show separately the costs associated with the project documentation deliverables. This would be the cost of printing manuals, drawings, or reports or the cost of producing videotapes.

7.   Overhead—contractors will add a percentage to costs in items 1 through 6 to cover indirect costs of doing business, such as insurance, depreciation, accounting, general management, marketing, and human resources.

8.   Escalation—for large projects that are expected to take several years to complete, the contractor needs to include the costs of escalation in wage rates and materials costs over the length of the project.

9.   Contingency or management reserve—an amount the contractor may want to include to cover the unexpected items that have been overlooked.

10. Fee or profit—Items 1 through 9 are costs. The contractor must now add an amount for its fee or profit. The total cost plus the profit is the contractor’s price for the proposed project.

References:- Foundation Relations. (n.d.). Retrieved from umasscfr/grant-writing/basic-components-proposal