A
The last opportunity for a contractor to reduce its price to a customer who may be considering proposals from several contractors
What is best and final offer (BAFO)?
Formal, rational process a contractor should undertake to determine whether to submit a proposal or a no-bid letter in response to an RFP
What is bid/no-bid decision?
An amount of funds added to the base cost estimate to cover estimate uncertainty and risk exposure
What is a contingency?
Legal agreements between the contractor and customer or sponsor that spells out the duties of each party
What is a contract?
Contract in which the contractor is paid for all of its allowed expenses to a set limit, plus additional payment to allow for a profit
What is a cost-reimbursement contract?
Contract wherein the payment does not depend on the resources or the time spent
What is a fixed-price contract?
Costs that are not directly attributable to a cost object, such as administration, rental, utility and security costs
What are indirect (or overhead) costs?
The amount of the total allocated budget withheld for management control purposes rather than designated for the accomplishment of a specific task or set of tasks
What is the management reserve or contingency?
The total amount of income left over for the contractor after all costs and expenses are deducted from the price
What is profit?
The contractor's total aggregated estimated costs for a project plus its desired profit
What is price?
The percentage of the number of proposals a contractor won out of the total number of proposals he submitted to customers over a particular time period
What is a win ratio?
Section of a proposal in which the contractor tries to convince the customer that s/he understands the problem or need and can provide the least risky and most beneficial solution
What is the technical section of a proposal?
Section of a proposal that attempts to convince the customer that the contractor can do the proposed work and achieve the intended results
What is the management section?
Section of a proposal in which the contractor attempts to convince the customer that the price for the proposed project is realistic and reasonable
What is the cost section?
The value of proposals the contractor won as a percentage of the value of all the proposals the contractor submitted to various customers during a specific time period
What is total dollar value?
Project funding announcement posted by an organization for which companies place bids
What is a request for proposal (RFP)?
The three sections of proposal to a customer
What are technical, management, and cost?
The estimated costs of various types or classifications of people who are expected to work on the project
Clause in the contract that prohibits one party from disclosing project confidential information, technologies or processes
What is the disclosure of proprietary information clause?
The basis upon which the customer will make payments to the contractor
What are terms of payment?
This section of the proposal would include such items as labor, materials, equipment, facilities, and overhead
What is the cost section?
This section of the proposal would include elements such as the description of major tasks, deliverables, equipment and facilities, and related experience
What is the management section?
The quantifiable goods or services that must be provided upon completion of a project
What are deliverables?
This section of the proposal would include elements such as an understanding of the need, the proposed approach or solution, and benefits to the customer
What is the technical section?
Document outlining the tasks or work elements the customer wants the contractor to perform
What is the statement of work (SOW)?