Training Technical Proposal Writing

							  ESA Training Courses for Industry

Writing a good technical and contractual proposal
in response to an ESA Invitation To Tender (ITT)

                Gunilla Stjernevi (RES-PL)
    Head of the Contractual Rules and Procedure Office
                 ESA ESTEC, Noordwijk
                  Tel: +31 71 565 3534
             E-Mail: Gunilla.Stjernevi@esa.int




                                                         1
         PRESENTATION OVERVIEW

•   Proposal Structure
•   Evaluation Criteria Content
•   Examples of TEB comments
•   Link – ITT – Evaluation Criteria - Proposal




                                                  2
OVERALL STRUCTURE OF THE
                PROPOSAL


 A good proposal consists of the following, clearly
divided parts (or volumes):




                                                       3
OVERALL STRUCTURE OF THE
  PROPOSAL (continued)

1.          The Cover Letter
1a.         (Option): an Executive Summary
2.          The Technical Proposal
3.          The Administrative Proposal, consisting of:
      3.1          The Management Proposal
      3.2          The Financial Proposal
      3.3          The Contractual Proposal

                                                          4
OVERALL STRUCTURE OF THE
   PROPOSAL (continued)


 The Cover Letter

The CL is an important part of the proposal and plays a
key role at the time of tender opening, when proposals
are initially screened for admission. As specified in the
General and in the Special Conditions for Tender, the
letter should as a minimum include the following general
information, reflecting the detailed contents of the
proposal:

                                                            5
OVERALL STRUCTURE OF THE
   PROPOSAL (continued)

 o The names of the authors of the proposal, and the
 names and coordinates of the contact persons during
 tendering, as well as of the technical and contractual
 managers in case of contract award

 o Clear and unambiguous statements of compliance
 with the Agency’s technical and management
 requirements as well as with the applicable contract
 conditions (i.e. the draft contract) and, if any, special
 Industrial Policy measures as per the ITT

                                                             6
OVERALL STRUCTURE OF THE
   PROPOSAL (continued)


 o The recapitulation of the quoted price and price
 type, including a breakdown by subcontractor, if
 applicable

 o A list of subcontractors, if applicable

 o A confirmation of the required validity of the
 proposal (normally 4 months)


                                                      7
 OVERALL STRUCTURE OF THE
    PROPOSAL (continued)

 The Administrative Proposal: Management Part

The Management Proposal consists of the following main
parts:

    o Relevant background and experience of the company/ies

    o Overall organisation of the company/ies, including the
   position of the proposed team within the organisation


                                                           8
OVERALL STRUCTURE OF THE
   PROPOSAL (continued)


o Key personnel, their experience, functions and time
dedication

o List of deliverable items


o Management Plan, policies and procedures


o Facilities to be used during the execution of the work

                                                           9
OVERALL STRUCTURE OF THE
   PROPOSAL (continued)

o Work Breakdown Structure and Work Package
Descriptions (also in the Technical Proposal together with
the work logic and activity flow chart)

o Detailed Meeting and Review Plan

o Planning information, including a bar chart covering
the execution of the different tasks / Work Packages, the
major milestones, meetings and reviews and highlighting
items which are on the critical path

                                                       10
 OVERALL STRUCTURE OF THE
    PROPOSAL (continued)


 The Administrative Proposal: Financial Part

The Financial Proposal covers the following aspects:

   o Overall pricing information, including price type,
   total price and price breakdown by phase (if
   applicable) and by company (if subcontractors are
   proposed)


                                                          11
OVERALL STRUCTURE OF THE
   PROPOSAL (continued)

o Cost breakdown information using the standard PSS-A
forms
    PSS-A1: Company cost element data sheet
    PSS-A2: Company Price Breakdown Form
   (+ exhibit A if applicable)
    PSS-A8: Manpower and Price Summary at Work
   Package Level


                                                   12
OVERALL STRUCTURE OF THE
   PROPOSAL (continued)



o The commitment to carry out the required work for the
price quoted




                                                     13
 OVERALL STRUCTURE OF THE
    PROPOSAL (continued)


The PSS-A forms must be provided, for each company, for
the total of the activity and, if applicable, for each of the
phases foreseen by the draft contract


   o Travel and Subsistence Plan




                                                            14
  OVERALL STRUCTURE OF THE
     PROPOSAL (continued)


 The Administrative Proposal: Contract

The Contractual Proposal covers the Bidder’s response to
the conditions of the draft contract

Full, explicit and unconditional compliance is expected.
However, the Bidder has the possibility to:



                                                           15
OVERALL STRUCTURE OF THE
   PROPOSAL (continued)


 o Comment on certain contractual conditions: proposed
 deviations from the draft contract need to be clearly
 justified and fully phrased, keeping in mind that such
 deviations may have a negative effect on the evaluation

 o Request the application of specific parts of the General
 Clauses and Conditions (e.g. protection of background
 information) provided this does not clash with the
 explicit conditions of the draft contract

                                                        16
OVERALL STRUCTURE OF THE
   PROPOSAL (continued)


 o Propose a payment plan based on the milestones
 identified in the management proposal and in accordance
 with the outline laid out in the draft contract




                                                     17
OVERALL STRUCTURE OF THE
   PROPOSAL (continued)


 o Integrate the parts of the draft contract which have
 been left blank in the ITT (e.g. the name of the
 company’s representative authorised to sign the
 contract, the name of the company’s project manager
 and contracts officer, the name of the companies
 proposed as sub-contractors




                                                          18
       Evaluation criteria content
    Criterion 1: Background and experience (general and
    related to the particular field concerned) of the company
    (ies) and staff (including adequacy of proposed facilities)
•   General experience of the company/ies
•   Specific experience of the company/ies which is of
    relevance for the specific tasks and objectives of the ITT
•   General background/experience/suitability of proposed
    staff
•   Specific background/experience/suitability of proposed
    staff
•   Suitability of the proposed facilities

                                                              19
     Evaluation Criteria content
  Criterion 2: Understanding of the requirements and
  objectives and discussion of problem areas

• Critical assessment of the SOW (in terms of
  requirements and objectives)
• Overview of the technical content/current state of the art
• Trade-offs/requirement limitations/constraints/problem
  areas
• Discussion on various options available
• Identification of possible concepts


                                                           20
     Evaluation Criteria content
  Criterion 3: Quality and suitability of proposed
  programme of work; adequacy of engineering approach
• Identification of the selected baseline (based on
  technical discussion),
• Detailed description of the selected baseline
   – Specs, Work logic, Work Package Descriptions (input,
     description, output)
• Compliance matrix
• Credibility of proposal wrt objectives of the activity
• Completeness/compliance of the deliverable list wrt to
  the requirements and specs



                                                            21
      Evaluation criteria content
  Criterion 4: Adequacy of management, costing and
  planning for the execution of the work
• Team company organisation; team position within the
  overall structure of the company (for each company)
   – Responsibility of company and each individual
   – Reporting and communication lines
   – In case of sub’s – solidity and credibility of the management
     approach of the team




                                                                     22
          Evaluation Criteria content
    Criterion 4: Adequacy of management, costing and
    planning for the execution of the work, cont’d
•   Overall management effort
•   Time dedication of keypersonnel and credibility in
    relation to their task
•   Work breakdown structure – management wise
•   Name of company/WP manager per WP in the WBS
•   Acceptance of management requirements
•   Iteration of the management requirements in a
    Management Plan


                                                         23
       Evaluation Criteria content
  Criterion 4: Adequacy of management, costing and
  planning for the execution of the work
• Completeness and clarity of cost breakdown
   –   PSS-forms and travel subsistence
   –   Other cost elements
   –   Travels total cost
   –   Economic conditions – if applicable
   –   Profit level/overheads/administration
• In case of co-funding – credibility of the total cost of the
  work, evaluation of the balance ESA/Bidder funding



                                                                 24
      Evaluation criteria content
  Criterion 4: Adequacy of management, costing and
  planning for the execution of the work
• Bar chart
   – WBS- WPD reflection
   – Major meetings/milestones/reviews
   – Critical path (if applicable)
• Choice of milestones
   – General, Specified wrt payment plan
• Duration wrt to ITT
• Credibility of planning including travel plan/meeting plan



                                                           25
      Evaluation criteria content
• Criterion 5: Compliance with administrative tender
  conditions and acceptance of contract conditions
• Tender
   – All formal aspects not considered under previous criteria (CVs,
     PSS forms etc)
   – All remaining formal aspects
       • Validity, ESA bidder code, support letters, geo. distribution table,
         addressing announced ind. policy measures




                                                                                26
      Evaluation criteria content
  Criterion 5: Compliance with administrative tender
  conditions and acceptance of contract conditions

• Contract
   – Statement of compliance and acceptance
   – Reservations/non-compliances to specific parts of the contract
   – Payment percentage as per draft contract




                                                                      27
  Examples of TEB Comments
  Criterion 1: Background and Experience (General and
  related to the particular field concerned) of the company
  (ies) and staff (including adequacy of proposed facilities)


• Experience in a specific field of a company not
  mentioned
• Company and/or key-personnel lacks
  experience
• Vague and general CV of the key-personnel
• Description of facilities not clear
                                                            28
  Examples of TEB comments,
 Criterion 4: Adequacy of management, costing and
 planning for the execution of the work
• Organisational charts missing
• Unclear reporting lines within the project
  team
• Unclear where the project is located within
  the company
• No management policies and procedures

                                                    29
    Example of TEB comments
  Criterion 4: Adequacy of management, costing and
  planning for the execution of the work

• Absence of Management WP
• WPDs too fragmented/too
  superficial/insufficiently broken down
• No clear list of key-personnel and no clear
  description of role
• No/Insufficient time dedication of key personnel


                                                     30
   Examples of TEB comments
  Criterion 4: Adequacy of management, costing and
  planning for the execution of the work

• Planning not in line with complexity of work
• Barchart schedule missing
• Barchart does not reflect the work packages,
  major milestones, reviews
• Barchart reveals unrealistic planning (tasks are
  starting before needed outputs from other WPDs
  are finished)


                                                     31
     Examples of TEB comments
    Criterion 4: Adequacy of management, costing and
    planning for the execution of the work
•   PSS-A forms incomplete and/or unclear
•   Exhibit A missing
•   Number of hours as per time dedication higher than total
    number of labour hours quoted in the PSS A forms
•   Company’s own contribution not equally distributed
•   Hourly rates quoted not in line with the approved rates
•   Management effort too high


                                                           32
   Examples of TEB comments
• Criterion 5: Compliance with administrative tender
  conditions and acceptance of contract conditions
• Proposal not complete (as per special tender conditions)
• Non compliances with the tender conditions or with the
  contract conditions
• SME certification missing
• SW license conditions not explained
• No clear acceptance of contact conditions
• Specific contract conditions ignored


                                                         33
WHAT IS THE LINK BETWEEN THE ITT, THE
   EVALUATION CRITERIA AND THE
             PROPOSAL?

         ITT           Evaluation Criteria          Proposal

• Statement of Work   1) Background and      • Management Part
 Task Description    Experience              Company
 Technical           (general and           description(s)
requirements          related to the          Key Personnel + CVs
                      particular field
 Mgmt requirements   concerned) of the       Description of
• Special Tender      company(ies) and       technical facilities
Conditions            staff (including       needed to carry out the
 Management          adequacy of            work proposed
 Facilities          proposed facilities


                                                               34
WHAT IS THE LINK BETWEEN THE ITT, THE
   EVALUATION CRITERIA AND THE
        PROPOSAL? (continued)

       ITT           Evaluation Criteria            Proposal

• Statement of       2) Understanding • Technical Part
Work                 of the            Introduction
 Introduction       requirements and  Objectives
 Scope and          objectives and    Trade-offs (if applicable)
Objectives           discussion of
                                       Refinement of basic ITT
 Task Description   problem areas
                                      requirements (if applicable)
 Technical                            Discussion on potential
Requirements /                        problem areas and possible
Constraints                           solutions
                                       Compliance Matrix vs.
                                      technical requirements (if
                                      applicable)                  35
WHAT IS THE LINK BETWEEN THE ITT, THE
   EVALUATION CRITERIA AND THE
        PROPOSAL? (continued)

         ITT               Evaluation             Proposal
                            Criteria
• Statement of Work     3) Quality and   • Technical Part
 Objectives            suitability of    Compliance Statement &
 Work organisation     proposed         Matrix (may also be repeated
 Task description      programme of     in mgmt)
                        work; adequacy    Study/Development Logic
• Special Tender
                        of engineering   (chart)
Conditions
                        approach          Detailed WP description
 Work Breakdown
Structure (in mgmt)                      via PSS-A20 form (also in
                                         mgmt)
 Work Package
Description (in mgmt)                     Technical output
                                          “Model Philosophy” (if
                                         appl)                    36

                                          PA/QA approach (if appl.)
WHAT IS THE LINK BETWEEN THE ITT, THE
   EVALUATION CRITERIA AND THE
        PROPOSAL? (continued)

        ITT               Evaluation               Proposal
                           Criteria
• Statement of         4) Adequacy of     • Management Part
Work                   Management,         (Compliance Statement &
 Objectives           Costing and        Matrix)
 Work organisation    Planning for the    Organisation of
 Task description     execution of the   company(ies), incl.
                       work               organisation charts etc.
 Mgmt. req. + Stds.
 Schedule info.                           Mgmt. Plan and
and constraints                           Procedures
 Sp. Tender                               Team org., incl. team
Conditions                                position within overall
                                          organisation(s)
 Management part
                                           Key pers. role and time37
                                          dedication
WHAT IS THE LINK BETWEEN THE ITT, THE
   EVALUATION CRITERIA AND THE
        PROPOSAL? (continued)

     ITT        Evaluation                Proposal
                 Criteria
  (continued)   (continued)   • Management Part
                               Planning and Schedule, incl.
                              Planning bar-chart, milestones
                              definition, critical path items (if
                              applicable), etc.
                               Work Breakdown Structure
                              and Work Package Description
                              (also in Technical Proposal)
                               List of Deliverables
                               Meeting Plan

                                                            38
WHAT IS THE LINK BETWEEN THE ITT, THE
   EVALUATION CRITERIA AND THE
        PROPOSAL? (continued)

        ITT               Evaluation                Proposal
                           Criteria
• Statement of         4) Adequacy of     • Financial Part
Work                   Management,         Price summary (per
 Objectives           Costing and        company and/or per phase if
 Work organisation    Planning for the   applicable)
 Task description     execution of the    Cost breakdown via PSS-A2,
                       work               A8 forms (per company and/or
 Mgmt. req. + Stds.
                                          per phase if applicable)
 Schedule info.
and constraints        (continued)         Milestone Payments Plan (in
                                          accordance with Mgmt.
 Special Tender                          Proposal and with draft
Conditions                                contract)
 Financial part
                                                                  39
WHAT IS THE LINK BETWEEN THE ITT, THE
   EVALUATION CRITERIA AND THE
        PROPOSAL? (continued)

        ITT               Evaluation              Proposal
                           Criteria
• Cover Letter         5) Compliance    • Whole proposal (regarding
 E.g.: Special Ind.   with             formal response to all
Policy Measures        administrative   applicable tender conditions)
 Other instructions   tender           • Contractual Proposal
regarding the          conditions and    Compliance statement
contents of the        acceptance of     Comments/Integrations
proposal               contract
• Special Tender       conditions
Conditions
 All sections
• Draft Contract
                                                                 40