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CHAPTER 3: DEVELOPING PROJECT PROPOSALS
1. Successful contract opportunities are grounded in relationships.
a. True
b. False
2. Establishing and building trust is key to developing effective and successful relationships with clients and partners.
a. True
b. False
3. You learn more by telling than by listening.
a. True
b. False
4. Taking credit for outcomes that others have accomplished is a way to build yourself for others to respect you.
a. True
b. False
Chapter 3: Developing Project Proposals
5. Always put the client first.
a. True
b. False
6. It is ok to use foul language, slang, and jargon with clients. Especially when they are using them.
a. True
b. False
7. Waiting to develop a proposal until an RFP is announced is important to be sure all the information is available.
a. True
b. False
8. Helping customers identify needs, even if they are needs your company cannot help them address, is a way to
position your company to win future contracts.
a. True
b. False
Chapter 3: Developing Project Proposals
9. The cost of developing a proposal should be added in as a direct expense in the budget for a proposal.
a. True
b. False
10. It is unethical to submit an unsolicited proposal to a customer.
a. True
b. False
11. It is unfair to receive a noncompetitive contract with a customer that was thinking about developing an RFP.
a. True
b. False
12. A contractor’s pre-RFP/proposal efforts are crucial to establishing the foundation for eventually winning a contract
from the customer.
a. True
b. False
Chapter 3: Developing Project Proposals
13. Contractors interested in submitting a proposal in response to an RFP must be realistic about the probability of being
selected as the winning contractor.
a. True
b. False
14. A contractor should avoid no-bid decisions.
a. True
b. False
15. A contractor should bid on RFPs where there is little or no competition and avoid ones where they might have a
competitor bid on the project.
a. True
b. False
16. If there is high risk for the success of a project, the contractor should include a cost-reimbursement plan in their
cost section if the RFP did not specify a contract type.
a. True
b. False
Chapter 3: Developing Project Proposals
17. An RFP says that the contract planned is to be fixed price. The project is well-defined and low risk. The contractor
should bid based upon the contract type and risk level.
a. True
b. False
18. A contractor should make a no-bid decision for a project that would not be consistent the contractor's business
mission.
a. True
b. False
19. The reputation of the company that announced the RFP should be evaluated as a factor as well as the reputation of
the contractor when making a bid or no-bid decision.
a. True
b. False
20. Good pre-RFP marketing helps a contractor to know if funds will be available for a project in an RFP.
a. True
b. False
Chapter 3: Developing Project Proposals
21. A contractor should only respond to RFPs if they have the required resources already on their staff.
a. True
b. False
22. The length of the proposal is not as important as the quality of the information contained in the proposal.
a. True
b. False
23. The bid or no-bid decision is made on the capability to develop a quality proposal as well as the capability to
complete the project if the contractor wins the bid.
a. True
b. False
24. A bid/no-bid checklist helps a contractor to decide whether to submit a proposal in response to an RFP.
a. True
b. False
Chapter 3: Developing Project Proposals
25. A customer uses a request for proposal to solicit bids and then award a noncompetitive contract.
a. True
b. False
26. Submitting a proposal that meets the customer's statement of work and requirements is all that is needed to secure
a contract.
a. True
b. False
27. The customer selects the proposal that it expects will provide the best value.
a. True
b. False
28. A complex proposal is a technical report with charts and figures to explain the approach.
a. True
b. False
Chapter 3: Developing Project Proposals
29. It is important to emphasize the unique features that differentiate the contractor from other contractors.
a. True
b. False
30. Key partners and subcontractors can help win a project for a contractor by complementing the contractor's
expertise.
a. True
b. False
31. Including complicated graphics in a proposal demonstrates a contractor's advanced skill and shows specific
technical expertise.
a. True
b. False
32. Proposals must be realistic in terms of the proposed scope, cost, and schedule in the eyes of the customer.
a. True
b. False
Chapter 3: Developing Project Proposals
33. Proposals that promise too much or are overly optimistic may seem believable and support that the contractor
understands what needs to be done and how to do it.
a. True
b. False
34. A proposal manager is required to have a consistent, comprehensive proposal by the due date in the RFP.
a. True
b. False
35. Developing a large proposal is a project.
a. True
b. False
36. If the RFP format requirement states a page limit, the customer can reject a proposal that exceeds the page limit
without any further review.
a. True
b. False
Chapter 3: Developing Project Proposals
37. A specific proposed solution should be suggested for the customer's need.
a. True
b. False
38. Specific criteria listed in the RFP should be restated in the proposal to reinforce to the customer that the contractor
understands the requirements.
a. True
b. False
39. Quantitative and qualitative benefits to the customer should be stated to help convince the customer of the value of
the proposed result.
a. True
b. False
40. The proposal should include a lengthy, detailed list of activities to show planning has been well thought out by the
contractor.
a. True
b. False
Chapter 3: Developing Project Proposals
41. The schedule can include times for major tasks and key milestones to show sequence and interdependencies of the
tasks.
a. True
b. False
42. Inclusion of an organization chart or assigned responsibility is helpful for the customer to evaluate the expertise of
the project staff.
a. True
b. False
43. The objective of the cost section of the contractor proposal is to convince the customer that the contractor’s price for
the proposed project is realistic and reasonable.
a. True
b. False
44. Realistic estimated hours and hourly labor rate for each person or classification is included in the cost section.
a. True
b. False
Chapter 3: Developing Project Proposals
45. Equipment that is included in the project costs are those required by the project.
a. True
b. False
46. Special facilities for a project are a project cost and should be included in the project cost estimates for the
proposal.
a. True
b. False
47. Contractors may outsource some of the work to subcontractors or consultants to perform certain project tasks.
a. True
b. False
48. Local travel is usually not included in the project costs.
a. True
b. False
Chapter 3: Developing Project Proposals
49. Documentation deliverables are sometimes shown as separate costs in the project cost estimate.
a. True
b. False
50. Indirect costs of doing business are included in proposals where the customer permits the charging of indirect costs.
a. True
b. False
51. Costs of escalation are costs associated with the increased costs for materials and wages in a long term project.
a. True
b. False
52. Management reserves are the estimated costs to cover unexpected situations.
a. True
b. False
Chapter 3: Developing Project Proposals
53. A desired profit is added after calculating all the direct and indirect costs for a project.
a. True
b. False
54. It is good practice to have the person who will be responsible for the major work tasks estimate the associated
costs.
a. True
b. False
55. Historical data can be used to guide estimating costs for a proposed project.
a. True
b. False
56. A ballpark estimate is acceptable for the proposal. There will be time to figure out the budget after the contract is
won.
a. True
b. False
Chapter 3: Developing Project Proposals
57. For projects that are new and have high risk, the contractor should include larger amounts of contingency.
a. True
b. False
58. A contractor that is entering a similar but new field should plan a smaller profit to increase chances of winning the
project.
a. True
b. False
59. If a customer has stated the budget in the RFP, the customer might reject proposals that have cost estimates
greater than the budget without further review of the proposal.
a. True
b. False
60. By participating in pre-RFP meetings, a contractor may gain budget intelligence and be able to submit a project
proposal with a more appropriate level of effort expected.
a. True
b. False
Chapter 3: Developing Project Proposals
61. The amount of profit on a project is adjusted depending upon the amount of competition for a project.
a. True
b. False
62. Contractors must continue to be proactive after submitting a proposal by contacting the customer to ensure the RFP
has been received and answer any questions.
a. True
b. False
63. Responding to follow-up communications may be viewed as an unfair advantage for contractors.
a. True
b. False
64. For clarification on a specific proposal, a customer may send a list of questions to be answered.
a. True
b. False
Chapter 3: Developing Project Proposals
65. Project proposals are evaluated with a standard set of criteria.
a. True
b. False
66. Proposal evaluation scorecards are used in the decision making process to inform the final choice.
a. True
b. False
67. As soon as a contractor finds out it is the winner, it can start working on the project.
a. True
b. False
68. It is illegal for the contractor to overstate the hours or costs.
a. True
b. False
