Need Replay for below discussions of 50 words each favorable to discussions Discussion-1 1) What other factors should Marvin and his team consider? Marvin was the president and (CEO) of his organization. the decision of paying little mind to whether to offer on occupation over a particular dollar regard rested out and upon his shoulders.Already ,his association would offer on all occupations that were a strong match with his association's key targets and association's win-to-setback extent was sublime. in any case , to offer on this occupation would be troublesome. the client was requesting sure data in the interest for recommendation (RFP)that Marvin did not want to release.if Marvin did not consent to the necessities of the RFP, his association's offered would be considered as non responsive. Offering Process Marvin's association was extremely productive at winning contracts throughNew RFP forceful advertising The association was wander driven and most of the income that came into the association came through winning contracts. The greater part of the clients master the association with whole deal contracts and moreover take after on contracts. The greater part of the understandings were firm-settled esteem contracts. Business was obviously incredible, at any rate starting not very far in the pastMarvin developed a course of action whereby 5 percent of offers would be used for responding to RFPs. This was insinuated as an offered and-suggestion (B&P) spending arrangement. Offering Process Marvin's association was extremely productive at winning contracts through New RFP forceful advertising. There are various factors that needs to be taken into consideration when it comes to bidding. They are as follows Bid Cost Tenability Of course Marvin had his list of pros and cons drafted, the cost in terms of time and money that it would take to participate in the bidding process. And of course the probability of winning the bid. In the past, Marvin and his team had been very successful in winning contracts through competitive bidding (), however, he didn’t want to share the detailed cost structure. Also, the previous contracts were based on firm fixed cost, and now it was cost reimbursable. So, he had to take into consideration the pricing of each WBS. 1)Potential Profit: If Marvin and his team were to win the bid, the contract would have been for 10 years, which would lead to cash flow for the company for next 10 years, however the team would have to consider various factors such as having the resources both human and non human, expertise needed. Also, if this bidding was as competitive as the ones in the past. This also means will his company have to lower the bidding such that he looses all the profitability. Lastly, it would be appropriate for him to look into the historical data on profit made on similar projects or at least from the client he was trying to seek the contract for. 2) Funding: One of the most important aspect in PM is budget. Marvin will have to ensure if the client will make timely payments provided the deliverable are on time or will he have to fund the project till the very end till the actual completion of the project. 3)Scope: It is a well known fact that when project scope are not well defined, it actually puts a strain on company-client relationship as the change request may happen so often that the companies may not be able to accommodate the changes. Hence, Marvin and his team must have a clear SOW with well defined scope. 4)Term & Conditions: As mentioned in the case, the RFP request from the client clearly stated the contract type, also the pricing information for each WBS. In addition, each bidder would have to agree to use the WBS created by the client during project execution and to report cost according to the WBS (Kerzner, 2013) 5)Future Opportunity: Marvin and his team will have to consider if there will be any future benefit if they win the contract. In some cases it may be strategic to bid on a project simply to break into a new market, gain expertise and experience in a new technology, or build a relationship with a new client (DesLonde, 2014) Discussion-2 To Bid or Not to Bid 1 day ago Similarly as shown Eventually Tom's perusing my proposition , Marvin's affiliation When completing that,they ought with know genius' Furthermore con's about that Furthermore of RFP Furthermore they ought to distinguish the thing that customer necessities On unpretentious components they necessity on do examination. As stated by my decision , what i have grasp is "TO offer or NOT to BID" those companionship will be performing great conclusions toward winning contracts through those locked in souk of advertising the methodology. Eventually Tom's perusing winning,contracts What's more they are making extraordinary compensation it will supportive for associations should make Acquaintanceship Also they camwood get great out hails. Marvin 's companionship will be recognized Likewise An profitable wander determined winning contracts and customers provided for 10-year possibility agreement Likewise a section from claiming winning souk What's more provides for extraordinary compensation In those period. It offers client's will provide for An unmistakable basics with Marvin's companionship should perceive as An enter right hand as opposed recently a supplier. In the prevailing and only assentions a couple laborers who wont remain longer period aside from key data is known as appeal for proposition (RFP) it create detectably. Over A large portion of the events about understandings, impermanent masters anticipate basic data that is called demand for proposition (RFP). It winds up discernibly real a component here to examination motivation behind Also transforms under a central Some piece on win those the table or disaster will be imminent it might a chance to be recognized Likewise nonresponsive. I could state that , Marvin's affiliation may be getting extraordinary results Previously, examining an the table Furthermore thwy definitely see all the over investing course of action they need aid exceptionally masters yo grasp regarding customers choice. To which the firm settled cst ,just in short i might state the level about evaluting at huge levels are they need aid providing for astounding offers with customers for incredible offers On the whole pieces. RFP might have been discharged. Consistently, WBS i. E. , worth of effort breakdown structure under five levels. Read the case study " TO BID OR NOT TO BID" on page Below and then answer one (1) of the questions • • • Don’t copy from google should be 100% on own words. Should be on api format and should contains 400 words. Need one replay for each discussion attached below of 50 words each should of own words based on discussion(Discussion are attached on word document-2). TO BID OR NOT TO BID2 Background Marvin was the president and chief executive officer (CEO) of his company. The decision of whether or not to bid on a job above a certain dollar value rested entirely upon his shoulders. In the past, his company would bid on all jobs that were a good fit with his company’s strategic objectives and the company’s win-to-loss ratio was excellent. But to bid on this job would be difficult. The client was requesting certain information in the request for proposal (RFP) that Marvin did not want to release. If Marvin did not comply with the requirements of the RFP, his company’s bid would be considered as nonresponsive. Bidding Process Marvin’s company was highly successful at winning contracts through competitive bidding. The company was project-driven and all of the revenue that came into the company came through winning contracts. Almost all of the clients provided the company with long-term contracts as well as follow-on contracts. Almost all of the contracts were firm-fixed-price contracts. Business was certainly good, at least up until now. Marvin established a policy whereby 5 percent of sales would be used for responding to RFPs. This was referred to as a bid-and-proposal (B&P) budget. The cost for bidding on contracts was quite high and clients knew that requiring the company to spend a great deal of money bidding on a job might force a no-bid on the job. That could eventually hurt the industry by reducing the number of bidders in the marketplace. Marvin’s company used parametric and analogy estimating on all contracts. This allowed Marvin’s people to estimate the work at level 1 or level 2 of the work breakdown structure (WBS). From a financial perspective, this was the most cost-effective way to bid on a project 1474 knowing full well that there were risks with the accuracy of the estimates at these levels of the WBS. But over the years continuous improvements to the company’s estimating process reduced much of the uncertainty in the estimates. New RFP One of Marvin’s most important clients announced it would be going out for bids for a potential ten-year contract. This contract was larger than any other contract that Marvin’s company had ever received and could provide an excellent cash flow stream for ten years or even longer. Winning the contract was essential. Because most of the previous contracts were firm-fixed-price, only summary-level pricing at the top two levels of the WBS was provided in the proposal. That was usually sufficient for the company’s clients to evaluate the cost portion of the bid. The RFP was finally released. For this project, the contract type would be cost-reimbursable. A WBS created by the client was included in the RFP, and the WBS was broken down into five levels. Each bidder had to provide pricing information for each work package in the WBS. By doing this, the client could compare the cost of each work package from each bidder. The client would then be comparing apples and apples from each bidder rather than apples and oranges. To make matters worse, each bidder had to agree to use the WBS created by the client during project execution and to report costs according to the WBS. Marvin saw the risks right away. If Marvin decided to bid on the job, the company would be releasing its detailed cost structure to the client. All costs would then be clearly exposed to the client. If Marvin were to bid on this project, releasing the detailed cost information could have a serious impact on future bids even if the contracts in the future were firm-fixed-price. Marvin convened a team composed of his senior officers. During the discussions which followed, the team identified the pros and cons of bidding on the job: Pros: A lucrative ten-year (or longer) contract The ability to have the client treat Marvin’s company as a 1475 strategic partner rather than just a supplier Possibly lower profit margins on this and other future contracts but greater overall profits and earnings per share because of the larger business base Establishment of a workable standard for winning more large contracts Cons: Release of the company’s cost structure Risk that competitors will see the cost structure and hire away some of the company’s talented people by offering them more pay Inability to compete on price and having entire cost structure exposed could be a limiting factor on future bids If the company does not bid on this job, the company could be removed from the client’s bidder list Clients must force Marvin’s company to accept lower profit margins Marvin then asked the team, “Should we bid on the job?” • • • QUESTIONS 1. What other factors should Marvin and his team consider? 2. Should they bid on the job?
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