Chapter 12: The Structure of the Formal Proposal

Overview

Sometimes it's more appropriate to write a formal proposal than to submit a letter proposal. You may decide to do so, for example, if the document is too long (that is, more than four or five pages) to fit comfortably in the letter format, if it's proposing a costly or complicated solution, or if a formal, sectioned response has been mandated by the RFP to which you are responding.

Formal proposals will vary, depending on what's appropriate for the given audience. But, as a general rule, all formal proposals will contain three broad categories of content: the business case; the detailed solution and substantiation; and any attachments.

THE BUSINESS CASE	Cover letter Title page Table of contents Executive Summary Customer needs Customer desired outcomes High-level presentation of solution Key value-added components or uniqueness factors Pricing and payback analysis	Accessible: by all audiences, but focused on the top-level executives and financial buyers
		Content: overview, high-level content focusing mainly on business issues, bottom-line factors
		Graphics: ROI charts, payback analysis, focus boxes to highlight key text
SOLUTIONS AND SUBSTANTIATION	Solution in significant detail, including: Deliverables Operational description of the equipment or system proposed Training Documentation Implementation Pricing/cost analysis ROI or payback calculation Value-added components	Accessible: primarily by technical reviewers
		Content: details addressing how the system works, establishing value, differentiating your offering from competitors'
		Graphics: Product illustrations Flow charts Process diagrams Schematics CAD drawings Gantt chart Cost comparison table
	Scope of work Project plan/master schedule Timeline Project team, resumes, organization chart Subcontractors
	References Case studies Testimonials Uniqueness factors Warranties, service-level agreements
	RFP response Compliance matrix Question and answer section
ATTACHMENTS AND APPENDICES	Terms and conditions Glossary/nomenclature Relevant marketing materials Attachments (digital media, sample code, video, photo tour of prospective facility, etc.)	Accessible: varies; usually a highly specialized reviewer Content: specialized information to facilitate the decision process

The reason you want to structure your formal proposal this way is to provide the right kind of content, aimed at the right level of expertise, for all of the various evaluators who will look at it:

• Senior executives will want the basics: What are they proposing? Why should we do this? What do we gain from choosing these people? What differentiates them? How much will it cost? What kind of ROI can we expect?

• Technical evaluators and gatekeepers have more specialized interests. They want specific, detailed content that addresses their areas of responsibility and concerns.

• A gatekeeper, who often performs the initial screen of all proposals to eliminate as many as possible, is looking for issues of compliance. Are we getting what we asked for? Has this vendor answered all of the questions? Did they follow our instructions?

• A technical evaluator is looking at the proposed solution and all the factors surrounding it, including issues of installation, implementation, training, support, and so forth. This evaluator wants to know: What are they proposing? How does it work? What are the risk factors? Do they have sufficient experience? How will it fit into our operation?

By writing your proposal with three distinct components in mind, you satisfy the information requirements of these different audiences.