As an engineer, you most likely will not be responsible for the details of the cost proposal, but you will make a large contribution to developing the information needed to complete it.

You will work in conjunction with the appropriate disciplines, such as manufacturing, to develop the proposed approach described in the technical proposal. Included in this process will be the definition of the project schedule(s) and the type of personnel (skill mix) required to complete the work. You must also define other activities such as trips, meetings, documentation, use of outside subcontractors, etc., to complete the technical work. These are basic inputs required by your cost-estimating group for them to establish the total project cost.

Part 3 of the Writing Winning Proposals series has presented you with the typical cost elements that must be considered when arriving at a total project cost estimate. These examples must be considered generic in nature. They are not definitive examples, since the accounting practices of different firms and organizations may vary greatly. The point here is to give you some sense of the various components that may enter into the total project cost.

As previously mentioned, the labor rates (dollars per hour) and labor overhead and total G&A factors discussed in this module are presented for illustrative purposes only. In no way should they be considered representative of actual rates. Again, your financial organization is responsible for the development of these rates.

For guidance on preparing technical proposals, see part 2 of the Writing Winning Proposals series.

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