CM-MA-703 Limited Effort Proposals (Level 2)

Table of Contents

1. Purpose
2. General
3. Responsibilities
4. Procedure
5. Flowchart
6. References
7. Attachments

1. Purpose

The objective of this procedure is to present directives for issuing limited effort, Level 2 proposals of Company.

2. General

This procedure describes the necessary activities for the preparation of limited effort proposals. It mainly concerns studies, basic engineering, audits etc. The procedure applies for all product lines.

Proposal efforts exceeding Level 2 and all LSTK proposals shall follow procedure ref. 6.1.

Generally proposals shall follow the requirements for document control as per procedure ref. 6.2.

3. Responsibilities

The Proposal Manager is responsible for informing the necessary staff of their task, control of proposal budget (manhours), balance and control quality of technical input, control and forward manhour estimates/pricing input.

The Business Development Manager (BDM) is responsible for commercial part of the proposal, pricing philosophy and overall control of the proposal quality and has the final responsibility.

Proposals prepared by the environmental department are the responsibility of the environmental department. The BDM shall not be responsible.

For environmental proposals to key customers of the process product line, the environmental department will work closely with the BDM and the BDM has the final release authority.

The departmental secretary is responsible for departmental administration and filing of the proposal.

4. Procedure

This procedure is now further applicable for “limited effort proposals”.

4.1 Bid Decision

For all Bid/No Bid decisions, the BDM shall make the Bid/No Bid recommendation and defend his position in the Bid/No Bid meeting.

If decided not to bid the requester will be notified by the BDM.

If decided to bid the requestor will be notified (when requested by requestor) and a proposal number will be opened using his personal number (example N-00901...).

4.2 Registration

A Job Prospect Analysis (JPA) (ref. 6.4) is not required for (limited effort) proposals. The Bid/No Bid register and personal job number will suffice.

4.3 Proposal Preparation: Technical Part

If decided to bid, a proposal manager may be appointed.

In case a proposal manager is assigned he will arrange a strategy meeting.

If a proposal manager is not assigned the BDM will act as the proposal manager.

The proposal manager will arrange a strategy/kick-off meeting with:

• the manager of the product line;
• the BDM;
• representative of the estimating department;
• representatives of all other departments as necessary.

The proposal manager will appoint tasks related to the preparation of all technical input for the proposal to the attendants of the strategy meeting.

The proposal manager will coordinate all technical input for the proposal in close conjunction with the BDM.

The proposal manager will be responsible for the technical part of the proposal, including:

• all write-ups;
• all manhour estimates;
• all materials estimates;
• indicate necessary subcontracting;
• appointment of key staff to the proposal (after consulting the respective department managers);

The proposal manager will arrange the required reviews and present the (draft) technical proposal to the BDM.

4.4 Proposal Preparation: Commercial Part

The BDM will prepare the commercial part of the proposal.

• A representative of the estimating department will be present at the proposal strategy meeting.
• The BDM will inform the contracts department and obtain their input as required.

The BDM will request final approval from Company management, VP product line or general manager for issuing the proposal to the client.

The BDM and the proposal manager will review both for completeness/correctness.

The Proposal Approval Form (ref. 6.3) is signed by the product line manager or general manager and BDM to approve issue of the proposal to the client.

4.5 Distribution and Administration

• the client will receive the requested number of proposals.
• one copy will be issued for back up to the contracts department.
• the technical proposal shall be filed in the proposal department file.
• the commercial proposal shall be filed in the BD department file.
• the estimating department shall receive a separate technical and commercial proposal copy.

5. Flowchart

6. References

7. Attachments

None.