Proposals, From a Cost Perspective

1
Proposals, From a Cost Perspective

• Adapted from
• Claude Freaner
• Office of Earth Science
• NASA Headquarters

2
Why Worry About Cost?
Proposal Preparation

• NASA needs to be able to make independent
  assessments of the Cost Risk and the Cost Realism
  of each project to lessen the chance of mission
  failure. Some consequences of inadequate
  assessments are
• Cancellation
• De-scope of Instrumentation
• Loss of spacecraft/instrument
• Loss of resolution
• Reduced operational period
• The earlier the independent assessment is made,
  the more taxpayer dollars may be saved.

3
How are Proposals Selected?
Proposal Preparation

• 1. Headquarters approves a draft NRA/AO/RFP that
  defines what we are looking for.
• 2. PIs write proposals and submit them.
• 3. Reviewers read the proposals, identifying
  strengths, weaknesses, and risks
• Science
• Technical
• Management
• Cost
• Education
• Other Opportunities (SDB, Commercialization,
  Public Outreach)
• 4. Selection Official makes a decision based on
  the above areas plus funding availability and
  political necessity.

4
First Step for a Prospective PI
Proposal Preparation

• READ THE REASoN CAN, COVER TO COVER!!!
• Read the Technical, Management, Cost, Education
  Public Outreach, and Proposal Submittal sections
  with as much attention to detail as you place on
  the Science Section
• The biggest risk to the PI at this stage is that
  the proposal will not be selected. Some
  suggestions to prevent rejection
• Provide ALL requested data
• Look forshow, list, provide, explain,
  describe, etc.
• Make liberal use of a highlighter
• Create a compliance matrix, include it with the
  proposal
• Get a good Project Manager and Systems Engineer
  right away - theyre experts in what
  needs to be done
• Pay attention to proposal submittal instructions

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Example (from IIP NRA)
Proposal Preparation
IIP Proposals 16 of 64 did not provide SOW 9
of 64 did not provide milestone charts 5 of 64
did not provide full-cost accounting for
government work 36 of 64 did not provide a
monthly cost plan
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Proposal Preparation
Examples (Continued)
From IIP NRA
From ESSP AO-3
Indicate funding for PI and each Co-I in a small
table, similar to this, along with the
individuals responsibility in the proposed
project.
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Proposal Preparation
8
Proposal Preparation
Why All This Detail? Risk Reduction. Cost
details tell the reviewer you understand the
problem, youve covered all the costs, and your
costs are reasonable.
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What is a Basis Of Estimate?
Proposal Preparation

• Basis Of Estimate How you determined what the
  cost will be.
• Catalog price
• Vendor quote
• http//www.policyworks.gov/org/main/mt/homepage/mt
  t/perdiem/travel.shtml
• Vendor ROM (or NTE) quote
• Detailed breakdown of time and materials to build
  it
• Similar to one built on another program last year
  (analogy)
• Engineering judgement (SWAG)

Every cost in the proposal should have a Basis of
Estimate!
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Example
Proposal Preparation
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Example
Proposal Preparation
Let the computer do the work
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Proposal Writing Made Easier
Proposal Preparation

• 1. Begin with a skeleton. Create a MS Word
  document with sections marked per NRA/AO/RFP
  directions. If the proposal has a page count
  limitation, give each section the number of blank
  pages allowed. Put in sub-section titles as
  required.
• 2. Identify required information for each
  sub-section. Cut and paste the required info
  from the proposal submittal instructions or your
  compliance matrix.
• 3. Identify which proposal subsections will
  require outside help - get the help started. Get
  an experienced and knowledgeable Project Manager
  and Systems Engineer very early in the proposal
  process.
• 4. Begin writing each subsection, paying close
  attention to the compliance matrix, and updating
  it as you go.
• 5. Arrange for an in-house Red Team review of
  your proposal to take place a couple of weeks
  prior to the submittal date.

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Proposal Writing Made Easier (Cont.)
Proposal Preparation

• Pressed for time?
• If the NRA/AO/RFP mentions student involvement,
  think about college students helping with the
  proposal An undergraduate management student can
  create the compliance matrix for you, an MBA
  candidate with technical BS can create and
  maintain your cost data, your risk assessment
  section, and your management section as you and
  other team members develop them.
• Find an English major or Journalism graduate
  student or civil servant to proofread your
  proposal drafts.
• Find an art or graphic design student to help you
  design the layout and artwork (or contact Center
  graphics office)

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Set Up A War Room
Proposal Preparation

• One page on the wall for each page allowed in the
  NRA/AO/RFP instructions
• Blank at first
• Section headings
• Rough Drafts
• Final Copy
• Ensures everyone knows
• the big picture

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What Does a Red Team Review Do?
Proposal Preparation

• The Red Team pretends to be a Source Selection
  Board.
• Composed of Scientist, Technologist, Management,
  Cost, Education/Public Outreach personnel
• Quickly reads the NRA/AO/RFP
• Validates your compliance matrix to the
  NRA/AO/RFP
• Validates your proposal to the compliance matrix
• The Red Team offers suggestions to improve all
  parts of the proposal
• Brutally frank, but constructive, criticism
• Red Team Review must be completed in just a
  couple of days max!

When the Red Team is finished, re-write your
proposal as appropriate, and complete any
remaining unfinished sub-sections
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Where do I find my Red Team?
Proposal Preparation

• Start with the Center Systems Management Office.
  If they dont have one, demand they provide one.
• Contact Co-Workers - offer to be on a Red Team
  for them in the future.

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Definition Risk Management (7120.5A)
Proposal Preparation

• "An Organized, Systematic Decision-Making Process
  That Efficiently Identifies Risks, Assesses or
  Analyzes Risks, and Effectively Reduces Or
  Eliminates Risks to Achieving the Program Goals.
• Step 1 Admit there are risks
• Step 2
• Identify what can go wrong
• Analyze and Assess consequences
• Mitigate the impacts develop plan to prevent
• Track progress
• Update Continuously

http//www.hq.nasa.gov/office/codeq/risk/risk.htm
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What Can Be Done To Lower Risk?
Proposal Preparation

• Provide requested data. Information can
  reduce uncertainty.
• Plan adequate margins and contingencies
• Anticipate adversity
• Plan (and use) Peer Reviews

?
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How Is Cost Risk Reduced?
Proposal Preparation
?

• Adequate Information About The Estimate
• Provide Requested Data
• Write Down Assumptions
• Provide Basis of Estimate
• Show Calculations
• Be Consistent and Traceable
• Adequate Funding Reserves
• Bottoms-Up Allocations, Based On Risk
• Project Phase Specific
• Adequate Schedule Reserves
• Along Critical Path
• Funded (marching army)
• Tracking And Control (Earned Value)

?
?
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Questions?
Points of Contact
Area POC email Research Martha Maiden
mmaiden_at_hq.nasa.gov Applications Ed Sheffner
esheffne_at_hq.nasa.gov Education Ming-Ying
Wei mwei_at_hq.nasa.gov Technology Karen
Moe Karen.Moe_at_gsfc.nasa.gov SEEDS Kathy
Fontaine Kathleen.S.Fontaine.1_at_ gsfc.nasa.gov
Other questions Ed Sheffner 202-358-0239