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Contract Research Proposal Preparation Strategies

Burton V. Dean and Robert H. Culhan
Management Science
Vol. 11, No. 8, Series B, Managerial (Jun., 1965), pp. B187-B199
Published by: INFORMS
Stable URL: http://www.jstor.org/stable/2627558
Page Count: 13
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Contract Research Proposal Preparation Strategies
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Abstract

A bidding model is developed and used to examine alternative contract research proposal preparation strategies. Expected profits due to sales from initial and follow-on production orders are related to proposal preparation cost, contract value, and the probability of contract award. Limited engineering resources may be allocated to proposal preparation effort so as to maximize total expected profits. The model is tested and applied in the proposal preparation activity of a company in the aerospace industry.

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