Understanding Proposals: Types and Elements

Study Notes

Proposals are documented ideas.
Proposals solve technical problems.
Proposals provide enough information for decision-makers to decide whether to accept the solution.
To accept a proposal, management needs convincing that the solution is technically sound and operationally feasible(Technical Section).
Management needs to be convinced that the proposing person/group has the ability to effect the solution (Managerial Section).
Management needs to be convinced that the costs are reasonable and benefits match the total cost(Financial Section)
A proposal is like a three-legged stool; if one leg is missing or weak, the proposal collapses.
Proposals are similar to recommendation reports; however, proposals focus on one solution, discuss implementation details, and include information about timeline and cost.
Types of proposals include:
- In-firm proposals
- Firm-to-firm proposals
- Research grant proposals
In-firm proposals outline solutions within an organization. They are informal/semiformal and focus on technical and cost-benefit analysis.
Firm-to-firm proposals state who will do what for who and the cost. An example is International Engineering proposing a wastewater treatment facility for $2.4 million.
Research grant requests are offers for services, not acts of begging. Key elements include supporting arguments, need, and a summary of the proposed research.

Introduction: Presents the document's purpose, problem, and scope.
Technical Section: Includes background information, methodology, and project timetable.
Managerial Section: Shows credentials, experience, facilities, personnel, and accountability.
Financial Section: Details costs, payment methods, and generated revenues/cost savings.
Tangible Products of the Project: A list of outcomes directly related to the proposal.
Urge to Action: Encourages the recipient to accept the proposed solution.