Chapter 13
Proposals and Formal
Reports
Writing Proposals
Ch. 13, Slide 2
Ways of Doing Business
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Catalog Order
Online Order
Purchase Order
Unsolicited Proposal>Contract ($)
Bid Solicitation (RFP)> Proposal >
Contract ($)
Ch. 13, Slide 3
Companies Which Use
Proposals
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Services
Design and Construction
Consultants
Large custom orders (aerospace)
Government work
Ch. 13, Slide 5
Proposals
Proposals are written offers to solve
problems, provide services, or sell
equipment.
Proposals are the only way that
many companies get their sales
Ch. 13, Slide 4
The Contract Process
Solicited, Competitive Bid Process
• Solicitor (requesting company) • Determines needs and scope of work
• Prepares specifications, drawings, RFP
(Request For Proposal)
• Internal review and approval
• Determines who will get to bid
• Issues RFP/Goes out to bid
• Answers RFI’s (Request For Information)
• Receives proposals
• Evaluates proposals & selects bidder
• Awards contract
Ch. 13, Slide 6
The Contract Process
Contracts
Solicited, Competitive Bid Process
• Bidder (company who will do the work)
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Receives RFP
Evaluates RFP and requirements
Makes bid/no-bid decision
Identifies exceptions
Generates RFI’s
Prepares proposal
Internal review and approval
Submits proposal
Signs contract
Performs work
• Definition of a contract
• Mutual assent supported by the exchange of
consideration
• Mutual assent = offer and acceptance with
mutual understanding
• Consideration
• Promising to do what you have a legal right
not to do, or
• Promising not to do what you have a legal
right to do
Ch. 13, Slide 7
Components of a Contract
• A contract may be comprised of a body of
documents:
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Contract (binds all documents together)
RFP
Specifications
Drawings
Proposal
Schedule
RFI’s
Order of Precedence
Ch. 13, Slide 9
Why Proposal Language Is
So Important
• Proposal is usually made part of the
contract documents
• Under Statue of Frauds, what is in
writing is the sole admissible
evidence in court about the contract
Ch. 13, Slide 12
Ch. 13, Slide 8
Contracts Under the Statue Of Frauds
Contracts That Must Be in Writing
Writing Is the Sole Evidence of the Contract
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Suretyship (co-signing debts)
Executor payments of deceased debts
Marriage contracts (prenuptial)
Sale of real property (real estate)
Contracts taking over 1 year to perform
Sale of goods over $500
Sale of securities
Interest in personal property
Sale of personal property other than
goods over $5000 (contract rights,
patents, etc.)
Ch. 13, Slide 11
Writing Proposals
• Proposals are written offers to solve
problems, provide services, or sell
equipment.
• An RFP is a request for proposal.
Ch. 13, Slide 13
Writing Proposals
Writing Proposals
• Background\Introduction
• Introduction
• Explain why the proposal is being
made.
• Develop a persuasive “hook.” Suggest
excellent results, low cost, or exclusive
resources. Identify a problem or name a
key issue or benefit.
• Discuss the significance of the proposal
and its goals or purposes.
• For unsolicited proposals, convince the reader
that a problem exists.
• For solicited proposals, show that you fully
understand the problem and its ramifications.
• Get attention
Ch. 13, Slide 14
Ch. 13, Slide 15
Writing Proposals
Writing Proposals
Project Management/Team/Staffing/
Technical Plan
• Present your plan for solving the
problem.
• Describe your approach.
• Describe implementation and
evaluation.
• Explain the specific credentials
and expertise of the key personnel
for the project.
• Show that your support staff and
resources are superior to those of
the competition.
• Outline a schedule showing dates.
Ch. 13, Slide 16
Ch. 13, Slide 17
Writing Proposals
• Cost Proposal
• State pricing carefully. Proposals can be
part of the contract documents or
constitute the entire contract.
Writing Proposals
Close
• Ask for approval or the next step. Make it
easy to reply.
• Consider how to itemize your costs.
• Present a deadline for the bid figures.
Ch. 13, Slide 18
Ch. 13, Slide 19
Components in Formal and
Informal Proposals
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Transmittal form
Title page
Table of contents
List of figures
Executive summary
Introduction
Technical Plan
Schedule
Staffing
Cost Proposal/Budget
Exceptions/Clarifications
Appendix
Generally appearing in formal
proposals
• Copy of RFP
Components in Formal and
Informal Proposals
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Transmittal Form
Title page
Table of contents
List of figures
Executive Summary
Introduction
Technical Plan
Schedule
Staffing
Cost Proposal/Budget
Exceptions/Clarifications
Appendix
Generally optional in informal
proposals
Generally appearing in informal
proposals
An informal proposal is
often in the form of a
letter report
• Copy of RFP
Ch. 13, Slide 20
Ch. 13, Slide 21
Writing Proposals
• Exceptions/Clarifications
• List all items in bid package with which you
can not or will not comply
• Clarify reasons for non-compliance
• If bidder does not take exceptions, solicitor
(and courts) may assume whole bid package
scope will be provided
Ch. 13, Slide 22
Preparing Formal Reports
<Break>
Ch. 13, Slide 23
Preparing Formal Reports
• Analyze the report problem and
purpose
• Develop a problem question
Are customers satisfied with our service?
• Develop a purpose statement
The purpose of this report is to investigate
customer satisfaction and to recommend
areas for improvement.
Ch. 13, Slide 24
Ch. 13, Slide 25
Preparing Formal Reports
• Anticipate the audience and the
issues
• Consider primary and secondary
audiences. (What do they already
know? What do they need to know?)
• Divide the major problem into
subproblems for investigation.
Ch. 13, Slide 26
Preparing Formal Reports
• Collect data
• Search secondary sources.
• Gather primary data.
Preparing Formal Reports
• Prepare a work plan
• Include problem and purpose
statements.
• Describe sources and methods of
collecting data.
• Prepare a project outline and work
schedule.
Ch. 13, Slide 27
Preparing Formal Reports
• Document data sources
• Prepare note cards or separate sheets
citing all references (author, date,
source, page, and quotation).
• Use one documentation format
consistently.
Ch. 13, Slide 28
Preparing Formal Reports
• Interpret and organize the data
• Arrange the collected data in tables,
grids, or outlines that help you visualize
relationships and interpret meanings.
Ch. 13, Slide 30
Ch. 13, Slide 29
Preparing Formal Reports
• Compose the first draft
• Write the first draft at a computer. Use
appropriate headings as well as
transitional expressions to guide the
reader.
Ch. 13, Slide 31
Preparing Formal Reports
• Prepare the graphics
• Make tables, charts, graphs, and
illustrations – but only if they serve a
function. Use graphics to clarify,
condense, simplify, or emphasize your
data.
Preparing Formal Reports
• Revise and proofread
• Revise to eliminate wordiness,
ambiguity, and redundancy.
• Look for ways to improve readability,
such as using bulleted or numbered
lists.
• Proofread three times: (1) word or
sentence meaning, (2) grammar and
mechanics, and (3) formatting.
Ch. 13, Slide 32
Preparing Formal Reports
Ch. 13, Slide 33
Formal Report Components
• Evaluate the product
• Ask yourself, “Will this report achieve
its purpose”?
• Encourage feedback so that you can
improve future reports.
Ch. 13, Slide 34
Components in Formal
Reports
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Transmittal Form/Letter of Transmittal
Title Page
Table of contents
Executive summary
Introduction
Body (sections)
Conclusions/Recommendations
Appendices
Ch. 13, Slide 36
Ch. 13, Slide 35
Formal Report Components
• Transmittal Form
• A “receipt” for the delivery of the document
• Standard form in which you fill in exactly what
is being transmitted
• Both sender and receiver sign and keep copies
• Letter of Transmittal
• Announce the topic and explain who
authorized it.
• Briefly describe the project and preview the
conclusions – if the reader is supportive.
• Close by expressing appreciation for the
assignment, suggesting follow-up actions,
acknowledging the help of others, and offering
to answer questions.
Ch. 13, Slide 37
Formal Report Components
Formal Report Components
• Title page
• Table of contents
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Name of the report in all caps
Receiver’s name, title, and organization
Author’s name, title, and organization
Date submitted
• Show the beginning page number where
each report heading appears in the
report.
• Connect page numbers and headings
with dots.
Ch. 13, Slide 38
Ch. 13, Slide 39
Formal Report Components
Formal Report Components
• List of Figures
• Executive Summary
• A table of contents for figures
• An abstract of the entire report
• Include a list of tables, illustrations, or
figures.
• Summarize the report purpose, findings,
conclusions, and recommendations.
• Place the list on the same page as the
table of contents if possible.
• Gauge the length of the summary by the
length of the report and by the
organization’s practices.
Ch. 13, Slide 40
Ch. 13, Slide 41
Formal Report Components
Formal Report Components
• Introduction
• Body
• Explain the problem motivating the report.
• Describe the problem’s background and
significance.
• Clarify the scope and limitations of the
report.
• Consider reviewing relevant literature.
• Consider describing data sources,
methods, and key terms.
• Close by previewing the report’s
organization.
Ch. 13, Slide 42
• Discuss, analyze, and interpret the
research findings or proposed solution
to the problem.
• Arrange the findings in logical
segments that follow your outline.
• Use clear, descriptive headings.
Ch. 13, Slide 43
Formal Report Components
Formal Report Components
• Conclusions and recommendations
• Appendix
• Explain what the findings mean in
relation to the problem.
• Include items of interest to some, but
not all, readers, such as data-gathering
tools like questionnaires.
• Make enumerated recommendations, if
requested.
• Suggest actions for solving the
problem.
Ch. 13, Slide 44
Ch. 13, Slide 45
Formal Report Components
Creating Business Plans
• References and bibliography
• If footnotes are not provided, list all
references in a section called “Notes,”
“Works Cited,” or “References.”
• Optionally, include a bibliography
showing all the works cited (and
perhaps consulted) arranged
alphabetically.
A business plan is a form of proposal that
(a) Helps secure funding and
(b) Provides a detailed road map for a new
business to follow
Ch. 13, Slide 46
Ch. 13, Slide 47
Components in Typical
Business Plans
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Transmittal Form/Letter of Transmittal
Title Page
Table of Contents
Executive Summary
Company Description
Product/Service Description
Market Analysis
Operations and Management
Financial Analysis
Appendixes
Ch. 13, Slide 48
Business Plan Basics:
Questions to Ask
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What is you company’s mission?
What makes your concept better than
that of the competition?
Is your management team able to
implement the business plan?
What monetary, human, physical, and
technical resources do you need?
Do your financial projections make
sense?
Ch. 13, Slide 49
End
Ch. 13, Slide 50