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Oil, Gas and Petrochemicals

Project Management

Marketing
& Sales

Bid
&
Proposal

Design
&
Engineering

Installation
Service
Production & Commis&
sioning. Maintenance

Supply Management

Oil, Gas and Petrochemicals

BID AND PROPOSAL STEP


BENEFITS OF THE PROCESS:
proposals clearly targeted on customers red
issues;
enhanced chance of winning the bid through
different ways of selling;
stronger attention on what is going on around us,
by key screening points;

Oil, Gas and Petrochemicals

BID AND PROPOSAL STEP


BENEFITS OF THE PROCESS:

clear

understanding of customer
requirements, scope and cost of supply;

continuous refined selling strategy;

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW

Capture
team
have
already
established a thorough understanding
of customer needs at the sales pursuit
step;
The customer Request for Proposal
has already been received and our
sales strategy has been stated;
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW

Expand
Expand
capture
captureteam
team

Number of people involved


and management required
may vary significantly,
depending on the size and
complexity of the project;
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW

screening
screening

Expand
Expand
capture
captureteam
team

screening
screening

Project screening at key points of the process

continually review our position within the market place;


ensure alignment with our sales strategy;
avoid wasting our resources unnecessarily ;
Oil, Gas and Petrochemicals

screening
screening

Expand
Expand
capture
captureteam
team

screening
screening

BID & PROPOSAL PROCESS FLOW

Develop
Developtechnical
technicalproposal
proposal

The time spent on each step may vary from


minutes to weeks. Anyway, all steps in the
process should to be undertook , irrespective
of the value and type of the opportunity;
Oil, Gas and Petrochemicals

screening
screening

Expand
Expand
capture
captureteam
team

screening
screening

BID & PROPOSAL PROCESS FLOW

Develop
Developtechnical
technicalproposal
proposal

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW

Submit
Submit
technical
technicalproposal
proposal

The more we interact with customer


and create opportunities to receive its
feedback, the more our proposal may
attend to their expectations and more
differentiated it will be from the
competitors ones;
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW

Submit
Submit
technical
technicalproposal
proposal

complete
complete
and
and
submit
submit
commercial
commercial
proposal
proposal

r
si c
R

ew
i
v

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW

Submit
Submit
technical
technicalproposal
proposal

complete
complete
and
and
submit
submit
commercial
commercial
proposal
proposal

screening
screening

Project Management processes interface

Project Manager coordinates a deeper


contract review and agrees with
contract conditions (schedule, scope,
requirements, margin, etc);
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW

Submit
Submit
technical
technicalproposal
proposal

complete
complete
and
and
submit
submit
commercial
commercial
proposal
proposal

screening
screening

Project Management processes interface

Eventual disagreements, or doubts shall be


pointed to further clarification and/or
negotiation with customer, before formal
acceptance of the contract;
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW

Submit
Submit
technical
technicalproposal
proposal

complete
complete
and
and
submit
submit
commercial
commercial
proposal
proposal

screening
screening

Project Management processes interface

Negotiation
Negotiationand
andfinal
final
arrangements
arrangements

This step ends with formal order acknowledgement


(contract signature)

Now,
Now, we
we may
may really
really drink
drink itit !!
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW

Negotiation
Negotiationand
andfinal
final
arrangements
arrangements

Lessons learned
learned
Lessons

Submit
Submit
technical
technicalproposal
proposal

complete
complete
and
and
submit
submit
commercial
commercial
proposal
proposal

screening
screening

Project Management processes interface

Winning or losing the order...

What have we learned with this


bidding and how may we improve
the process for the next ?
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW

Expand
Expand
capture
captureteam
team

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Expand
capture team

##2.1
2.1 set
setup
upcross
crossfunctional
functionalteam
team

2.1
2.1

Purpose:
Extend the selling team (capture
team) with those additional resources
required to be able to develop and
cost the solution, to formalise a
proposal and conduct all negotiations
untill the contract signature.

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Expand
capture team

2.1
2.1

##2.1
2.1 set
setup
upcross
crossfunctional
functionalteam
team

Key activities:
Expand capture team with
members of the main disciplines
(proposal manager, potential
project manager, technical leader,
finance member, major suppliers,
etc);
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Expand
capture team

2.1
2.1

##2.1
2.1 set
setup
upcross
crossfunctional
functionalteam
team

Key activities:
define project specific roles and
responsibilities of the team
members;

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Expand
capture team

2.1
2.1

##2.1
2.1 set
setup
upcross
crossfunctional
functionalteam
team

Key activities:
structure project
packages;

into

work

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Expand
capture team

2.1
2.1

2.2
2.2

##2.2
2.2 study
studyrequest
requestfor
forproposal
proposaland
andplan
plan
tendering
tendering

Purpose:
study of the Request For Proposal
and
achieve
a
common
understanding of the problem to be
solved by the entire Cross
Functional Team;
plan tendering and establish detailed
time schedule to complete proposal.
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Expand
capture team

2.1
2.1

2.2
2.2

##2.2
2.2 study
studyrequest
requestfor
forproposal
proposaland
andplan
plan
tendering
tendering

Key activities:
review findings from the study of
the Request For Proposal;

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Expand
capture team

2.1
2.1

2.2
2.2

##2.2
2.2 study
studyrequest
requestfor
forproposal
proposaland
andplan
plan
tendering
tendering

Key activities:
identify any missing information
and communicate to customer;

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Expand
capture team

2.1
2.1

2.2
2.2

##2.2
2.2 study
studyrequest
requestfor
forproposal
proposaland
andplan
plan
tendering
tendering

Key activities:
compile detailed time schedule to
complete proposal.

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Expand
capture team screening

##S3
S3

Strategy
Strategyassessment/screening
assessment/screening

Purpose:
2.1
2.1

2.2
2.2

S3

Re-evaluation of the strategy and


supporting tactics for a given
opportunity. This leads to a decision
on how to continue the pursuit or to
stop.

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Expand
capture team screening

##S3
S3

Strategy
Strategyassessment/screening
assessment/screening

Key activities:
2.1
2.1

2.2
2.2

S3

Answer to key strategic questions,


like:
* what are the key issues to win?
* who has an ally?
* who has the stronger relationship
with the customer?
* How does our main competitors
solution compare with ours?
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Expand
capture team screening

2.1
2.1

2.2
2.2

S3

##S3
S3

Strategy
Strategyassessment/screening
assessment/screening

Key activities:
Conduct benefits & concerns
meeting with the Capture Team;

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Expand
capture team screening

2.1
2.1

2.2
2.2

S3

##S3
S3

Strategy
Strategyassessment/screening
assessment/screening

Key activities:
Obtain internal sign off for the
decision to pursue;

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Expand
capture team screening

2.1
2.1

2.2
2.2

S3

##S3
S3

Strategy
Strategyassessment/screening
assessment/screening

Key activities:
Update the strategy assessment/
screening document with reasons
for GO or NO GO decision.

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Expand
capture team screening

##2.16
2.16 Review
Reviewprocess
process

2.16
2.16

2.1
2.1

2.2
2.2

S3

Proceed to this step, if decision is

NO GO !
Wait
Wait aa moment
moment for
for more
more details
details about
aboutthis
this learning
learning step...
step...

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Expand
capture team screening
2.16
2.16

2.1
2.1

2.2
2.2

S3

Develop
Developtechnical
technicalproposal
proposal

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Expand
capture team screening

##2.3
Generateproposal
proposalspecification
specification
2.3 Generate
Develop technical proposal

2.16
2.16

2.3
2.3
2.1
2.1

2.2
2.2

S3

Purpose:
Develop the solution in the required detail,
starting from the high level solution conceived at
sales pursuit phase. This step deals with the
technical and costing aspects of the solution.
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Expand
capture team screening

##2.3
Generateproposal
proposalspecification
specification
2.3 Generate
Develop technical proposal

2.16
2.16

2.3
2.3
2.1
2.1

2.2
2.2

S3

The need to create partnership with suppliers


may become apparent during evaluation of the
Request for Proposal, in which case back to
back contractual conditions should be
negotiated.
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW

2.3
2.3

Generate Proposal Specification

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW

2.3

Generate Proposal Specification

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##2.3.1
Definebasis
basisof
ofBid
Bid
2.3.1 Define
2.3.1
2.3.1

Generate Proposal Specification

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##2.3.1
Definebasis
basisof
ofBid
Bid
2.3.1 Define
2.3.1
2.3.1

Purpose:
Purpose:

Define
Specification
Define the
the parameters
parameters on
on which
which our
our Bid
Bid
Generate Proposal

isis based,
based, including
including both
both technical
technical and
and
commercial
commercialaspects
aspectsof
ofthe
theproject;
project;

Identify
Identify and
and split
split supply
supply among
among
partners;
partners;

Define
Definethe
thetime
timeschedule
scheduleof
ofthe
theproject.
project.

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##2.3.1
Definebasis
basisof
ofBid
Bid
2.3.1 Define
2.3.1
2.3.1

Key
Key activities:
activities:

Verify
Specification
Verify that
that
Generate Proposal

customer
customer requirements,
requirements, as
as
stated
stated within
within the
the Request
Request for
for Proposal
Proposal
are
are aligned
aligned with
withABB
ABB expectations
expectations from
from
earlier
earlier customer
customer discussions
discussions and
and are
are in
in
line
line with
with the
the sales
sales strategy.
strategy.Monitor
Monitor and
and
review
reviewcustomer
customerchanges,
changes,ififany.
any.

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##2.3.1
Definebasis
basisof
ofBid
Bid
2.3.1 Define
2.3.1
2.3.1

Key
Key activities:
activities:

Check
Specification
Check for
for
Generate Proposal

ABB
ABB deviations
deviations from
from
Customer
Customerrequirements,
requirements,ififany.
any.

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##2.3.1
Definebasis
basisof
ofBid
Bid
2.3.1 Define
2.3.1
2.3.1

Key
Key activities:
activities:

Define
Specification
Define split
split
Generate Proposal

of
of scope
scope of
of supply
supply and
and
services
services between
between customer,
customer, partners,
partners,
sub-suppliers
sub-suppliersand
andABB
ABB(Brazil).
(Brazil).

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##2.3.1
Definebasis
basisof
ofBid
Bid
2.3.1 Define
2.3.1
2.3.1

Key
Key activities:
activities:

Select
Specification
Select the
the
Generate Proposal

appropriate
appropriate standard
standard for
for the
the
Bid
Bid structure:
structure: the
the proper
proper format
format and
and the
the
proper
proper contents,
contents, according
according to
to the
the
Request
RequestFor
ForProposal;
Proposal;

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##2.3.1
Definebasis
basisof
ofBid
Bid
2.3.1 Define
2.3.1
2.3.1

Key
Key activities:
activities:

Define
Specification
Define time
time
Generate Proposal

schedule
schedule with
with critical
critical
milestones
milestones for
for startup
startup of
of the
the contract,
contract,
project
project solution
solution creation
creation (engineering),
(engineering),
manufacturing,
manufacturing, integration,
integration, including
including
acceptance
acceptancetests
testson
onsite,
site,and
andinstallation.
installation.

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##2.3.1
Definebasis
basisof
ofBid
Bid
2.3.1 Define
2.3.1
2.3.1

Key
Key activities:
activities:

Specify
Specification
Specify
Generate Proposal

documentation
contents,
documentation
contents,
formats,
formats, data
data exchange
exchange formats
formats to
to be
be
supplied
supplied by
by customer
customer and
and ABB
ABB atat
specified
specifiedmilestones.
milestones.

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##2.3.1
Definebasis
basisof
ofBid
Bid
2.3.1 Define
2.3.1
2.3.1

Key
Key activities:
activities:

Identify
Specification
Identify any
any
Generate Proposal

unclear
unclear information
information and
and
clarify
clarify with
withcustomer.
customer.

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##2.3.2
DevelopSolution
Solution
2.3.2 Develop
2.3.1
2.3.1

2.3.2
2.3.2

Generate Proposal Specification

Purpose:
Purpose:

Identify
Identify the
the optimum
optimum solution,
solution, making
making
extensive
extensive use
use of
of standards
standards from
from the
the
Library
Libraryof
ofSolutions.
Solutions.

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##2.3.2
DevelopSolution
Solution
2.3.2 Develop
2.3.1
2.3.1

2.3.2
2.3.2

Generate Proposal Specification

Key
Key activities:
activities:

Define
Define the
the technical
technical concept
concept of
of our
our Bid,
Bid,
ensuring
ensuring its
its alignment
alignment with
with the
the general
general
solution
solution agreed
agreed with
with the
the customer
customer in
in the
the
Sales
Sales Pursuit
Pursuit stage
stage and
and fulfilling
fulfilling
customer
customer requirements
requirements according
according to
to
Request
RequestFor
ForProposal;
Proposal;

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##2.3.2
DevelopSolution
Solution
2.3.2 Develop
2.3.1
2.3.1

2.3.2
2.3.2

Generate Proposal Specification

Key
Key activities:
activities:

Design
Design the
the configuration
configuration of
of the
the main
main
systems,
systems, based
based on
on previous
previous projects
projects and
and
solutions;
solutions;

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##2.3.2
DevelopSolution
Solution
2.3.2 Develop
2.3.1
2.3.1

2.3.2
2.3.2

Generate Proposal Specification

Key
Key activities:
activities:

Define
Define solutions
solutions for
for the
the individual
individual parts
parts
of
ofall
allmain
mainsystems
systemsby
by extensive
extensiveuse
useof
of

standard
standard hardware
hardware and
and software
software
solution
solutionmodules;
modules;

adapted
adapted solution
solution modules
modules from
from
previous
previouscontracts;
contracts;
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##2.3.2
DevelopSolution
Solution
2.3.2 Develop
2.3.1
2.3.1

2.3.2
2.3.2

Generate Proposal Specification

Key
Key activities:
activities:

Design
Design and
and optimize
optimize solution
solution and
and
equipment
equipment for
for all
all main
main systems
systems using
using IT
IT
tools
toolsavailable;
available;

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##2.3.2
DevelopSolution
Solution
2.3.2 Develop
2.3.1
2.3.1

2.3.2
2.3.2

Generate Proposal Specification

Key
Key activities:
activities:

Identify
Identify and
and specify
specify options,
options, with
with the
the
respective
respective advantages
advantages and
and benefits,
benefits, to
to
enable
enable the
the customer
customer to
to differentiate
differentiate our
our
bid
bidfrom
fromthe
thecompetition
competitionone;
one;
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##2.3.2
DevelopSolution
Solution
2.3.2 Develop
2.3.1
2.3.1

2.3.2
2.3.2

Generate Proposal Specification

Key
Key activities:
activities:

Identify
Identify extent
extent of
of engineering,
engineering,
manufacturing
manufacturing and
and services
services necessary
necessary to
to
complete
completethe
theproject;
project;

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##2.3.2
DevelopSolution
Solution
2.3.2 Develop
2.3.1
2.3.1

2.3.2
2.3.2

Generate Proposal Specification

Key
Key activities:
activities:

Generate
Generate the
the proposal
proposal specification
specification and
and
documents
documents using
using standards
standards and/or
and/or
customized
customizedstandards;
standards;

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##2.3.2
DevelopSolution
Solution
2.3.2 Develop
2.3.1
2.3.1

2.3.2
2.3.2

Generate Proposal Specification

Key
Key activities:
activities:

Ensure
Ensurethat
thatall
allorganizations
organizationsinvolved
involvedin
in
generating
generating the
the proposal,
proposal, formally
formally have
have
reviewed
reviewed and
and understood
understood customer
customer
requirements,
requirements, and
and that
that the
the offered
offered
solution
solutionattends
attendsto
tothem;
them;
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##2.3.2
DevelopSolution
Solution
2.3.2 Develop
2.3.1
2.3.1

2.3.2
2.3.2

Generate Proposal Specification

Key
Key activities:
activities:

Ensure
Ensure that
that any
any discrepancy
discrepancy between
between
the
the offered
offered solution
solution and
and customer
customer
requirements
requirements isis formally
formally identified
identified by
by
any
any of
of the
the organizations
organizations involved
involved in
in the
the
proposal
proposalgeneration;
generation;
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##2.3.2
DevelopSolution
Solution
2.3.2 Develop
2.3.1
2.3.1

2.3.2
2.3.2

Generate Proposal Specification

Key
Key activities:
activities:

Ensure
Ensure that
that all
all missing
missing or
or unclear
unclear
information
information related
related to
to customer
customer inputs
inputs
are
aresolved
solvedor
orclarified;
clarified;

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##2.3.3
DevelopTest
TestSpecification
Specification
2.3.3 Develop
2.3.1
2.3.1

2.3.2
2.3.2

2.3.3
2.3.3

Generate Proposal Specification

Purpose:
Purpose:

Define
Define the
the strategy
strategy for
for testing,
testing, together
together with
with the
the
number
numberand
andtype
typeof
oftests
testsneeded;
needed;

Ensure
Ensurethat
thatacceptance
acceptancecriteria
criteriaare
aredefined
definedand
andfixed,
fixed,

Ensure
Ensure that
that additional
additional customer
customer requirements
requirements for
for ininhouse
house acceptance
acceptance testing
testing are
are evaluated
evaluated and
and will
will be
be
quoted
quotedas
asoptions.
options.
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##2.3.3
DevelopTest
TestSpecification
Specification
2.3.3 Develop
2.3.1
2.3.1

2.3.2
2.3.2

2.3.3
2.3.3

Generate Proposal Specification

Key
Key activities:
activities:

Define
Definetest
teststrategies,
strategies,depending
dependingon:
on:

complexity
complexity of
ofproject;
project;

new
newsolutions
solutions(product
(productperformance
performancerisk);
risk);

customer
customerrequirements
requirements&
&participation;
participation;

new
new applications
applications (product
(product performance
performance
risk);
risk);

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##2.3.3
DevelopTest
TestSpecification
Specification
2.3.3 Develop
2.3.1
2.3.1

2.3.2
2.3.2

2.3.3
2.3.3

Generate Proposal Specification

Key
Key activities:
activities:

Define
Define extent
extent of
of standard
standard and
and non-standard
non-standard ininhouse
housetesting;
testing;

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##2.3.3
DevelopTest
TestSpecification
Specification
2.3.3 Develop
2.3.1
2.3.1

2.3.2
2.3.2

2.3.3
2.3.3

Generate Proposal Specification

Key
Key activities:
activities:

Specify
Specifycustomer
customersite
siteacceptance
acceptancetest:
test:

acceptance
acceptancecriteria;
criteria;

test
testprocedure
procedureand
anddocumentation
documentationrequired;
required;

preconditions;
preconditions;

milestones;
milestones;

test
teststandards
standardsconsidered
consideredto
toeach
eachitem;
item;

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##2.3.4
UpdatedGeneration
Generationof
ofCost
Cost
2.3.4 Updated
2.3.1
2.3.1

2.3.2
2.3.2

2.3.4
2.3.4

2.3.3
2.3.3

Generate Proposal Specification

Purpose:
Purpose:

Updating
Updating (as
(as far
far as
as possible)
possible) of
of costs,
costs, using
using the
the
engineering
engineering data
data generated
generated in
in the
the previous
previous steps.
steps.
Engineering
Engineering hours
hours and
and services
services costs
costs are
are also
also
considered.
considered.
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##2.3.4
UpdatedGeneration
Generationof
ofCost
Cost
2.3.4 Updated
2.3.1
2.3.1

2.3.2
2.3.2

2.3.4
2.3.4

2.3.3
2.3.3

Generate Proposal Specification

Key
Key activities:
activities:

While
Whiledeveloping
developingthe
thesolution,
solution,keep
keepinteraction
interaction
with
withcost
costevaluation,
evaluation,considering:
considering:

standard
standardequipment/components;
equipment/components;

engineering
engineeringservices;
services;

support
supportservices
services(installation
(installation,,commissioning,
commissioning,
start-up,
start-up,training,
training,warranty)
warranty)

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


2.3.5
2.3.5

2.3.1
2.3.1

2.3.2
2.3.2

2.3.4
2.3.4

##2.3.5
InvolveSupply
SupplyChain
Chain
2.3.5 Involve
Coordination
Coordination

2.3.3
2.3.3

Generate Proposal Specification

Purpose:
Purpose:

Integration
Integration of
of third
third party
party suppliers
suppliers in
in obtaining
obtaining
cost
cost data
data for
for non-standard
non-standard or
or major
major components.
components.
Negotiation
Negotiation with
with suppliers
suppliers isis conducted,
conducted, as
as
necessary,
necessary, by
by the
the Supply
Supply Chain
Chain Coordination
Coordination
function.
function.
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


2.3.5
2.3.5

2.3.1
2.3.1

2.3.2
2.3.2

2.3.4
2.3.4

##2.3.5
InvolveSupply
SupplyChain
Chain
2.3.5 Involve
Coordination
Coordination

2.3.3
2.3.3

Generate Proposal Specification

Key
Key activities:
activities:

Advise
Advise Supply
Supply Chain
Chain Coordination
Coordination about
about all
all
non-standard
non-standard equipment/services,
equipment/services, to
to enable
enable him
him
to
to obtain
obtain competitive
competitive quotation
quotation from
from third
third party
party
suppliers
suppliers..
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


2.3.5
2.3.5

##2.3.6
DraftProposal
ProposalSpecification
Specificationand
andCost
CostModel
Model
2.3.6 Draft
2.3.1
2.3.1

2.3.2
2.3.2

2.3.4
2.3.4

2.3.6
2.3.6

2.3.3
2.3.3

Generate Proposal Specification

Purpose:
Purpose:

Collate
Collatethe
thedraft
draftProposal
ProposalSpecification
Specificationand
andto
to
produce
produceaaFull
FullCost
CostModel.
Model.

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


2.3.5
2.3.5

##2.3.6
DraftProposal
ProposalSpecification
Specificationand
andCost
CostModel
Model
2.3.6 Draft
2.3.1
2.3.1

2.3.2
2.3.2

2.3.4
2.3.4

2.3.6
2.3.6

2.3.3
2.3.3

Generate Proposal Specification

Key
Key activities:
activities:

Complete
Complete documentation
documentation of
of the
the proposal
proposal
Specifications,
including
all
technical
Specifications,
including
all
technical
descriptions,
descriptions, documentation
documentation (drawings)
(drawings) and
and time
time
schedules;
schedules;
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


2.3.5
2.3.5

##2.3.6
DraftProposal
ProposalSpecification
Specificationand
andCost
CostModel
Model
2.3.6 Draft
2.3.1
2.3.1

2.3.2
2.3.2

2.3.4
2.3.4

2.3.6
2.3.6

2.3.3
2.3.3

Generate Proposal Specification

Key
Key activities:
activities:

Define
Definewhat
whatmaterial
materialisispart
partof
ofthe
theproposal
proposaland
and
what
whatmaterial
materialremains
remainsinternal
internaldocumentation;
documentation;

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


2.3.5
2.3.5

##2.3.6
DraftProposal
ProposalSpecification
Specificationand
andCost
CostModel
Model
2.3.6 Draft
2.3.1
2.3.1

2.3.2
2.3.2

2.3.4
2.3.4

2.3.6
2.3.6

2.3.3
2.3.3

Generate Proposal Specification

Key
Key activities:
activities:

Compile
CompileCost
CostModel
Modelfor
forthe
thedeveloped
developedsolution.
solution.

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


2.3.5
2.3.5

2.3.1
2.3.1

2.3.2
2.3.2

2.3.4
2.3.4

2.3.6
2.3.6

next
steps

2.3.3
2.3.3

Generate Proposal Specification

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Expand
capture team screening
2.16
2.16

2.1
2.1

2.2
2.2

##2.4
RefineProject
ProjectStrategy
Strategy
2.4 Refine
Develop technical proposal
2.3
2.3

S3
2.4
2.4

Purpose:
Capture all business information prior entering
the completion phase of the Bid & Proposal
process (cost, customer feedback, sales
intelligence on competitor, price, etc) and,
interactively, refine the selling strategy Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Expand
capture team screening
2.16
2.16

2.1
2.1

2.2
2.2

##2.4
RefineProject
ProjectStrategy
Strategy
2.4 Refine
Develop technical proposal
2.3
2.3

S3
2.4
2.4

Key activities:
Consider different aspects to refine strategy:
tactics, contract terms and conditions,
payment/financing conditions, draft cost
model, negotiation with major suppliers, risk
assessment, etc.
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Expand
capture team screening
2.16
2.16

2.1
2.1

2.2
2.2

##2.4
RefineProject
ProjectStrategy
Strategy
2.4 Refine
Develop technical proposal
2.3
2.3

S3
2.4
2.4

Key activities:
Continuously validate approach;

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Expand
capture team screening
2.16
2.16

2.1
2.1

2.2
2.2

##2.5
GetCustomer
CustomerOn
OnBoard
Board
2.5 Get
Develop technical proposal
2.3
2.3

S3

2.5
2.5
2.4
2.4

Purpose:
Validate with customer (as far as possible) the
detailed solution, and make sure that our selling
approach meets his expectations. At the same
time, ensure that there will not be any surprises
once the formal bid has been submitted. Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Expand
capture team screening
2.16
2.16

2.1
2.1

2.2
2.2

##2.5
GetCustomer
CustomerOn
OnBoard
Board
2.5 Get
Develop technical proposal
2.3
2.3

S3

2.5
2.5
2.4
2.4

Key activities:
Test solution / approach with customer
(through an informal way/channels)

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Expand
capture team screening
2.16
2.16

2.1
2.1

2.2
2.2

##2.5
GetCustomer
CustomerOn
OnBoard
Board
2.5 Get
Develop technical proposal
2.3
2.3

S3

2.5
2.5
2.4
2.4

Key activities:
Highlight
advantages
considering investment
benefits;

for
and

customer,
operational

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Expand
capture team screening
2.16
2.16

2.1
2.1

2.2
2.2

##2.5
GetCustomer
CustomerOn
OnBoard
Board
2.5 Get
Develop technical proposal
2.3
2.3

S3

2.5
2.5
2.4
2.4

Key activities:
Reach consensus with customer regarding
procedure/ mechanism of contract changes
and the method for managing change.
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Expand
capture team screening
2.16
2.16

2.1
2.1

2.2
2.2

##S4
S4

Strategy
Strategyassessment/
assessment/screening
screening
Develop technical proposal

2.3
2.3

S3

2.5
2.5

S4

2.4
2.4

Purpose:

screening

Re-evaluate the strategy and supporting tactics


for a given opportunity, leading to a decision on
how to continue the pursuit or to stop.
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Expand
capture team screening
2.16
2.16

2.1
2.1

2.2
2.2

##S4
S4

Strategy
Strategyassessment/
assessment/screening
screening
Develop technical proposal

2.3
2.3

S3

2.5
2.5

S4

2.4
2.4

Key activities:

screening

Answer to key strategic questions, like:


* How does our main competitors solution compare with ours?
* who has the stronger relationship with the customer?
* what are the key issues to win?
* who has an ally?
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Expand
capture team screening
2.16
2.16

2.1
2.1

2.2
2.2

##S4
S4

Strategy
Strategyassessment/
assessment/screening
screening
Develop technical proposal

2.3
2.3

S3

2.5
2.5

S4

2.4
2.4

Key activities:

screening

Conduct benefits & concerns meeting with the


Capture Team;
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Expand
capture team screening
2.16
2.16

2.1
2.1

2.2
2.2

##S4
S4

Strategy
Strategyassessment/
assessment/screening
screening
Develop technical proposal

2.3
2.3

S3

2.5
2.5

S4

2.4
2.4

Key activities:

screening

Obtain internal sign off for the decision to


pursue;
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Expand
capture team screening
2.16
2.16

2.1
2.1

2.2
2.2

##S4
S4

Strategy
Strategyassessment/
assessment/screening
screening
Develop technical proposal

2.3
2.3

S3

2.5
2.5

S4

2.4
2.4

Key activities:

screening

Update the strategy assessment/ screening


document with reasons for GO or NO GO
decision.
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Expand
capture team screening
2.16
2.16

2.1
2.1

2.2
2.2

##2.16
2.16 Review
Reviewprocess
process
Develop technical proposal
2.16
2.16

2.3
2.3

S3

2.5
2.5

S4

2.4
2.4

screening

Proceed to this step, if decision is

NO GO !

Wait
Wait aa moment
moment for
for more
more details
details about
about this
this
learning
learning step...
step...
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Expand
capture team screening
2.16
2.16

2.1
2.1

2.2
2.2

##2.6
2.6

Complete
CompleteProposal
Proposal

Develop technical proposal

S3

2.6
2.6

2.16
2.16

2.3
2.3
2.5
2.5

S4

2.4
2.4

Purpose:

screening

Assemble all the components into a strong and


cohesive Proposal Specification.

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Expand
capture team screening
2.16
2.16

2.1
2.1

2.2
2.2

##2.6
2.6

Complete
CompleteProposal
Proposal

Develop technical proposal

S3

2.6
2.6

2.16
2.16

2.3
2.3
2.5
2.5

S4

2.4
2.4

Purpose:

screening

The proposal should give to the customer,


confidence in ABB, demonstrate that ABB
understands customers business issues and present
a sound technical solution at a competitive cost.
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##2.6
2.6

Expand
capture team screening
2.16
2.16

2.1
2.1

2.2
2.2

Complete
CompleteProposal
Proposal

Develop technical proposal

S3

2.6
2.6

2.16
2.16

2.3
2.3
2.5
2.5

S4

2.4
2.4

Key activities:

screening

Integrate modifications (if any), according to


customers feedback

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##2.6
2.6

Expand
capture team screening
2.16
2.16

2.1
2.1

2.2
2.2

Complete
CompleteProposal
Proposal

Develop technical proposal

S3

2.6
2.6

2.16
2.16

2.3
2.3
2.5
2.5

S4

2.4
2.4

Key activities:

screening

Highlight strengths & benefits in the proposal;

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##2.6
2.6

Expand
capture team screening
2.16
2.16

2.1
2.1

2.2
2.2

Complete
CompleteProposal
Proposal

Develop technical proposal

S3

2.6
2.6

2.16
2.16

2.3
2.3
2.5
2.5

S4

2.4
2.4

Key activities:

screening

Review and collate the final proposal;

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##2.6
2.6

Expand
capture team screening
2.16
2.16

2.1
2.1

2.2
2.2

Complete
CompleteProposal
Proposal

Develop technical proposal

S3

2.6
2.6

2.16
2.16

2.3
2.3
2.5
2.5

S4

2.4
2.4

Key activities:

screening

Review Full Cost Model

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Expand
capture team screening
2.16
2.16

2.1
2.1

2.2
2.2

##2.7
2.7

Management
ManagementApproval
Approval

Develop technical proposal

S3

2.6
2.6

2.16
2.16

2.3
2.3
2.5
2.5

2.7
2.7

S4

2.4
2.4

Purpose:

screening

Obtain the necessary internal approvals in order to


sign off the proposal, demonstrating commitment
by top management.
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##2.7
2.7

Expand
capture team screening
2.16
2.16

2.1
2.1

2.2
2.2

Management
ManagementApproval
Approval

Develop technical proposal

S3

2.6
2.6

2.16
2.16

2.3
2.3
2.5
2.5

2.7
2.7

S4

2.4
2.4

Key activities:

screening

Organize and conduct approval meeting

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##2.7
2.7

Expand
capture team screening
2.16
2.16

2.1
2.1

2.2
2.2

Management
ManagementApproval
Approval

Develop technical proposal

S3

2.6
2.6

2.16
2.16

2.3
2.3
2.5
2.5

2.7
2.7

S4

2.4
2.4

Key activities:

screening

Present at the meeting the key points of the


proposal (technical, legal and financial),
screening documents, project strategy and Full
Cost Model.
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##2.7
2.7

Expand
capture team screening
2.16
2.16

2.1
2.1

2.2
2.2

Management
ManagementApproval
Approval

Develop technical proposal

S3

2.6
2.6

2.16
2.16

2.3
2.3
2.5
2.5

2.7
2.7

S4

2.4
2.4

Key activities:

screening

Management approval of the Full Cost Model


and signature of the proposal.

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Expand
capture team screening
2.16
2.16

2.1
2.1

2.2
2.2

##2.8
2.8 Prepare
PrepareProposal
ProposalPresentation
Presentation
Develop technical proposal

S3

2.6
2.6

2.16
2.16

2.3
2.3
2.5
2.5

S4

2.4
2.4

Purpose:

2.7
2.7

2.8
2.8

screening

Prepare a professional presentation of the Proposal


Specification to optimize the possibility of
receiving feed-backs from the customer.
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Expand
capture team screening
2.16
2.16

2.1
2.1

2.2
2.2

##2.8
2.8 Prepare
PrepareProposal
ProposalPresentation
Presentation
Develop technical proposal

S3

2.6
2.6

2.16
2.16

2.3
2.3
2.5
2.5

2.7
2.7

S4

2.4
2.4

2.8
2.8

screening

Although proposal presentations may be considered


not usual nowadays in auction processes, this may
represent an opportunity of differentiate ourselves
as a professional company, specially in new markets
like M&M.
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Expand
capture team screening
2.16
2.16

2.1
2.1

2.2
2.2

##2.8
2.8 Prepare
PrepareProposal
ProposalPresentation
Presentation
Develop technical proposal

S3

2.6
2.6

2.16
2.16

2.3
2.3
2.5
2.5

S4

2.4
2.4

Key activities:

2.7
2.7

2.8
2.8

screening

Prepare a professional presentation , highlighting


main strengths/ benefits of our solution

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Expand
capture team screening
2.16
2.16

2.1
2.1

2.2
2.2

##2.8
2.8 Prepare
PrepareProposal
ProposalPresentation
Presentation
Develop technical proposal

S3

2.6
2.6

2.16
2.16

2.3
2.3
2.5
2.5

S4

2.4
2.4

Key activities:

2.7
2.7

2.8
2.8

screening

Identify customers time frame and attendees of


interest (decision makers and influencers);

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Expand
capture team screening
2.16
2.16

2.1
2.1

2.2
2.2

##2.8
2.8 Prepare
PrepareProposal
ProposalPresentation
Presentation
Develop technical proposal

S3

2.6
2.6

2.16
2.16

2.3
2.3
2.5
2.5

S4

2.4
2.4

Key activities:

2.7
2.7

2.8
2.8

screening

Schedule presentation with customer;

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Expand
capture team screening
2.16
2.16

2.1
2.1

2.2
2.2

##2.8
2.8 Prepare
PrepareProposal
ProposalPresentation
Presentation
Develop technical proposal

S3

2.6
2.6

2.16
2.16

2.3
2.3
2.5
2.5

S4

2.4
2.4

Key activities:

2.7
2.7

2.8
2.8

screening

Define presentation strategy for customer key


personnel;

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Expand
capture team screening
2.16
2.16

2.1
2.1

2.2
2.2

##2.8
2.8 Prepare
PrepareProposal
ProposalPresentation
Presentation
Develop technical proposal

S3

2.6
2.6

2.16
2.16

2.3
2.3
2.5
2.5

S4

2.4
2.4

Key activities:

2.7
2.7

2.8
2.8

screening

Appoint
presentation
team
responsibilities of team members;

and

roles/

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Expand
capture team screening
2.16
2.16

2.1
2.1

2.2
2.2

##2.8
2.8 Prepare
PrepareProposal
ProposalPresentation
Presentation
Develop technical proposal

S3

2.6
2.6

2.16
2.16

2.3
2.3
2.5
2.5

S4

2.4
2.4

Key activities:

2.7
2.7

2.8
2.8

screening

Decide on presentation media (computer


simulation, video support material, visualization
aids)
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Expand
capture team screening
2.16
2.16

2.1
2.1

2.2
2.2

Develop technical proposal

S3

2.6
2.6

2.16
2.16

2.3
2.3
2.5
2.5

2.7
2.7

S4

2.4
2.4

2.8
2.8

screening

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Submit
technical proposal

##2.9
Communicate Technical
Technical Proposal
Proposal
2.9 Communicate
to
toCustomer
Customer

2.9
2.9

Purpose:
Influence customer decisions, through the presentation
of our solution, focusing on its advantages and how it
will deliver benefits to it, besides receiving customer
feedback about our solution.
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Submit
technical proposal

##2.9
Communicate Technical
Technical Proposal
Proposal
2.9 Communicate
to
toCustomer
Customer

2.9
2.9

Although it may not always be possible,


endevour to conduct this step before submitting
the proposal (step 2.10) to obtain customer
feedback prior to submit the bid.
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Submit
technical proposal

##2.9
Communicate Technical
Technical Proposal
Proposal
2.9 Communicate
to
toCustomer
Customer

Key activities:
2.9
2.9

Conduct a pre-presentation to
customer key personnel:
conduct an overview on structure
and content of the presentation;
validate the strengths and benefits
for the customer;
identify customers concerns and
aspects for improvement.
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Submit
technical proposal

##2.9
Communicate Technical
Technical Proposal
Proposal
2.9 Communicate
to
toCustomer
Customer

Key activities:
2.9
2.9

Conduct the presentation by the


capture team;

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Submit
technical proposal

##2.9
Communicate Technical
Technical Proposal
Proposal
2.9 Communicate
to
toCustomer
Customer

Key activities:
2.9
2.9

Obtain all possible feedback and


commitments from the audience;

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Submit
technical proposal

2.9
2.9

##2.10
2.10 Submit
Submit Technical
Technical Proposal
Proposal to
to
Customer
Customer

2.10
2.10

Purpose:
Hand over written technical proposal to the customer.
Format and content of the proposal should be no
surprise to the customer due to the previously
conducted activities.
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Submit
technical proposal

##2.10
2.10 Submit
Submit Technical
Technical Proposal
Proposal to
to
Customer
Customer

Key activities:
2.9
2.9

2.10
2.10

Resolve any concerns of the


Customer Project Team;

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Submit
technical proposal

##2.10
2.10 Submit
Submit Technical
Technical Proposal
Proposal to
to
Customer
Customer

Key activities:
2.9
2.9

2.10
2.10

Modify
technical
accordingly;

proposal

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Submit
technical proposal

##2.10
2.10 Submit
Submit Technical
Technical Proposal
Proposal to
to
Customer
Customer

Key activities:
2.9
2.9

2.10
2.10

Modify Full
accordingly;

Cost

Model

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Submit
technical proposal

##2.10
2.10 Submit
Submit Technical
Technical Proposal
Proposal to
to
Customer
Customer

Key activities:
2.9
2.9

2.10
2.10

Hand-over technical part of the


proposal to the customer ;

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Submit
technical proposal

##2.10
2.10 Submit
Submit Technical
Technical Proposal
Proposal to
to
Customer
Customer

Key activities:
2.9
2.9

2.10
2.10

Obtain customers feedback;

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Submit
technical proposal

2.9
2.9

2.10
2.10

##2.11
2.11 Get
Get Customer
Customer Approval
Approval
Technical
TechnicalSpecification
Specification

for
for

2.11
2.11

Purpose:
Follow up on changes that might have occurred or
asked by the customer , after the submission of the
technical proposal, and to agree with the customer on
the complete technical specification.
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Submit
technical proposal

##2.11
2.11 Get
Get Customer
Customer Approval
Approval
Technical
TechnicalSpecification
Specification

for
for

Key activities:
2.9
2.9

2.10
2.10

2.11
2.11

Establish agreement on proposed


modifications
regarding
customers concerns;

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Submit
technical proposal

##2.11
2.11 Get
Get Customer
Customer Approval
Approval
Technical
TechnicalSpecification
Specification

for
for

Key activities:
2.9
2.9

2.10
2.10

2.11
2.11

Endevour to obtain the customer


agreement on complete technical
specification;

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Submit
technical proposal

##2.11
2.11 Get
Get Customer
Customer Approval
Approval
Technical
TechnicalSpecification
Specification

for
for

Key activities:
2.9
2.9

2.10
2.10

2.11
2.11

in an auction process, evaluate


possible
opposition
to
competitors participation by
technical reasons and, whenever
possible, obtain a decision from
the customer in our favor;

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Submit
technical proposal

##2.11
2.11 Get
Get Customer
Customer Approval
Approval
Technical
TechnicalSpecification
Specification

for
for

Key activities:
2.9
2.9

2.10
2.10

2.11
2.11

Sign
complete
technical
specification with customer;

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


Submit
technical proposal

##2.11
2.11 Get
Get Customer
Customer Approval
Approval
Technical
TechnicalSpecification
Specification

for
for

Key activities:
2.9
2.9

2.10
2.10

2.11
2.11

Review Full
according
to
modifications;

Cost
the

Model
agreed

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##2.12
Risk Review
Review and
and Approval
Approval for
for
2.12 Risk
Commercial
CommercialProposal
Proposal

Submit
technical proposal

2.9
2.9

2.10
2.10

Purpose:

2.11
2.11

2.12
2.12

Submit commercial
proposal

Finalize and get internal approval for the commercial


proposal, including the risk review by ABB. Submit
the commercial proposal to the customer and receive
its feedback.
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##2.12
Risk Review
Review and
and Approval
Approval for
for
2.12 Risk
Commercial
CommercialProposal
Proposal

Submit
technical proposal

2.9
2.9

2.10
2.10

2.11
2.11

2.12
2.12

Submit commercial
proposal

Key activities:

Decide internally on:


Pricing and negotiation strategy to win the order;
Price negotiation range;
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##2.12
Risk Review
Review and
and Approval
Approval for
for
2.12 Risk
Commercial
CommercialProposal
Proposal

Submit
technical proposal

2.9
2.9

2.10
2.10

2.11
2.11

2.12
2.12

Submit commercial
proposal

Key activities:

Review the draft of the contract, based on


previous written examples or specifically
submitted by the customer;
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##2.12
Risk Review
Review and
and Approval
Approval for
for
2.12 Risk
Commercial
CommercialProposal
Proposal

Submit
technical proposal

2.9
2.9

2.10
2.10

2.11
2.11

2.12
2.12

Submit commercial
proposal

Key activities:

Review engineering capacity and time schedule


for the contract;
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##2.12
Risk Review
Review and
and Approval
Approval for
for
2.12 Risk
Commercial
CommercialProposal
Proposal

Submit
technical proposal

2.9
2.9

2.10
2.10

2.11
2.11

2.12
2.12

Submit commercial
proposal

Key activities:

Organize and conduct approval meeting,


including, when applicable, the risk review;
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##2.12
Risk Review
Review and
and Approval
Approval for
for
2.12 Risk
Commercial
CommercialProposal
Proposal

Submit
technical proposal

2.9
2.9

2.10
2.10

2.11
2.11

2.12
2.12

Submit commercial
proposal

Key activities:

Approve final price and sign proposal;

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##2.12
Risk Review
Review and
and Approval
Approval for
for
2.12 Risk
Commercial
CommercialProposal
Proposal

Submit
technical proposal

2.9
2.9

2.10
2.10

2.11
2.11

2.12
2.12

Submit commercial
proposal

Key activities:

Submit commercial proposal to the customer;

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##2.12
Risk Review
Review and
and Approval
Approval for
for
2.12 Risk
Commercial
CommercialProposal
Proposal

Submit
technical proposal

2.9
2.9

2.10
2.10

2.11
2.11

2.12
2.12

Submit commercial
proposal

Key activities:

Receive customer feedback about commercial


proposal.
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##S5
S5

Submit
technical proposal

2.9
2.9

2.10
2.10

Purpose:

Strategy
Strategyassessment/
assessment/screening
screening
screening

2.11
2.11

2.12
2.12

S5

Submit commercial
proposal

Re-evaluation of the strategy and supporting tactics


after the technical and commercial proposal have
been considered winner among competitors by the
customer.

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##S5
S5

Submit
technical proposal

2.9
2.9

2.10
2.10

Strategy
Strategyassessment/
assessment/screening
screening
screening

2.11
2.11

2.12
2.12

S5

Submit commercial
proposal

Project Management processes interface

At this step, Project Manager involvement will


become deeper, through his contract review and
acceptance of the main conditions and requirements
of the contract (Interface with PM processes)
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##S5
S5

Submit
technical proposal

2.9
2.9

2.10
2.10

Strategy
Strategyassessment/
assessment/screening
screening
screening

2.11
2.11

2.12
2.12

S5

Submit commercial
proposal

Key activities:

Project Management processes interface

Contract Review by Project Manager and his


formal agreement to the technical, financial and
contractual conditions (Project start-up);
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##S5
S5

Submit
technical proposal

2.9
2.9

2.10
2.10

Strategy
Strategyassessment/
assessment/screening
screening
screening

2.11
2.11

2.12
2.12

S5

Submit commercial
proposal

Key activities:

Project Management processes interface

Revalidation of Risk Review Committee decision


to GO ON with the business opportunity, after
Project Manager contract review;
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##S5
S5

Submit
technical proposal

2.9
2.9

2.10
2.10

Strategy
Strategyassessment/
assessment/screening
screening
screening

2.11
2.11

2.12
2.12

S5

Submit commercial
proposal

Key activities:

Project Management processes interface

Internal discussion on issues that need further


clarifications or negotiations with customer
(technical, financial, contractual), raised by PM;
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##S5
S5

Submit
technical proposal

2.9
2.9

2.10
2.10

Strategy
Strategyassessment/
assessment/screening
screening
screening

2.11
2.11

2.12
2.12

S5

Submit commercial
proposal

Key activities:

Project Management processes interface

Update the negotiation strategy and the strategy


assessment screening document with reasons for a
GO or NO GO decision.
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##2.16
2.16 Review
Reviewprocess
process

Submit
technical proposal

screening
2.16
2.16

2.9
2.9

2.10
2.10

2.11
2.11

2.12
2.12

Proceed to this step, if


decision is

S5

NO GO !

Submit commercial
proposal

Project Management processes interface

Wait
Wait aa moment
moment for
for more
more details
details
about
about this
this learning
learning step...
step...
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##2.13
2.13 Contract
ContractNegotiation
Negotiationand
and
Order
OrderAcknowledgement
Acknowledgement

Submit
technical proposal

screening
2.16
2.16

2.9
2.9

2.10
2.10

Purpose:

2.11
2.11

2.12
2.12

S5

Submit commercial
proposal

2.13
2.13

Negotiation and final arrangements

Project Management processes interface

Achieve commitment between the customer and


ABB, based on clearly agreed and mutually
beneficial conditions in the contract (technical,
financial, contractual).

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##2.13
2.13 Contract
ContractNegotiation
Negotiationand
and
Order
OrderAcknowledgement
Acknowledgement

Submit
technical proposal

screening
2.16
2.16

2.9
2.9

2.10
2.10

2.11
2.11

2.12
2.12

S5

Submit commercial
proposal

Key activities:

2.13
2.13

Negotiation and final arrangements

Project Management processes interface

Achieve agreement on issues raised on the


previous step, based on agreed scope of supply,
services and approved technical specification;
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##2.13
2.13 Contract
ContractNegotiation
Negotiationand
and
Order
OrderAcknowledgement
Acknowledgement

Submit
technical proposal

screening
2.16
2.16

2.9
2.9

2.10
2.10

2.11
2.11

2.12
2.12

S5

Submit commercial
proposal

Key activities:

2.13
2.13

Negotiation and final arrangements

Project Management processes interface

Agree with customer on main contract


conditions in order to obtain and sign an Order
Acknowledgement (e.g Intermediate Contract or
letter of intent);

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##2.14
2.14 Negotiate
NegotiateRemaining
Remaining
Contract
ContractConditions
Conditions

Submit
technical proposal

screening
2.16
2.16

2.9
2.9

2.10
2.10

2.11
2.11

2.12
2.12

S5

Submit commercial
proposal

Purpose:

2.13
2.13

2.14
2.14

Negotiation and final arrangements

Project Management processes interface

Follow-up on open issues which are part of the


Intermediate Contract and work on them until
completion and approval of the contract.
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##2.14
2.14 Negotiate
NegotiateRemaining
Remaining
Contract
ContractConditions
Conditions

Submit
technical proposal

screening
2.16
2.16

2.9
2.9

2.10
2.10

2.11
2.11

2.12
2.12

S5

Submit commercial
proposal

Key activities:

2.13
2.13

2.14
2.14

Negotiation and final arrangements

Project Management processes interface

Agree with customer on remaining contract


conditions;
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##2.14
2.14 Negotiate
NegotiateRemaining
Remaining
Contract
ContractConditions
Conditions

Submit
technical proposal

screening
2.16
2.16

2.9
2.9

2.10
2.10

2.11
2.11

2.12
2.12

S5

Submit commercial
proposal

Key activities:

2.13
2.13

2.14
2.14

Negotiation and final arrangements

Project Management processes interface

Define open prerequisites to start the contract


and define actual start date on time schedule;
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##2.14
2.14 Negotiate
NegotiateRemaining
Remaining
Contract
ContractConditions
Conditions

Submit
technical proposal

screening
2.16
2.16

2.9
2.9

2.10
2.10

2.11
2.11

2.12
2.12

S5

Submit commercial
proposal

Key activities:

2.13
2.13

2.14
2.14

Negotiation and final arrangements

Project Management processes interface

Agree on points with regard to separate prices;

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##2.14
2.14 Negotiate
NegotiateRemaining
Remaining
Contract
ContractConditions
Conditions

Submit
technical proposal

screening
2.16
2.16

2.9
2.9

2.10
2.10

2.11
2.11

2.12
2.12

S5

Submit commercial
proposal

Key activities:

2.13
2.13

2.14
2.14

Negotiation and final arrangements

Project Management processes interface

Agree on active co-operation with customers


personnel and define conditions;
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##2.15
2.15 Validate
Validateand
andSign
SignContract
Contract

Submit
technical proposal

screening
2.16
2.16

2.9
2.9

2.10
2.10

2.11
2.11

2.12
2.12

S5

Submit commercial
proposal

Purpose:

2.13
2.13

2.14
2.14

2.15
2.15

Negotiation and final arrangements

Project Management processes interface

Formal validation of all agreed conditions of the


contract.
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##2.15
2.15 Validate
Validateand
andSign
SignContract
Contract

Submit
technical proposal

screening
2.16
2.16

2.9
2.9

2.10
2.10

2.11
2.11

2.12
2.12

S5

2.13
2.13

2.14
2.14

2.15
2.15

DONT
TO
DONT FORGET
FORGET
TO
Negotiation and final arrangements
Project
Management processes interface
RING
BELL
RING THE
THE
BELL
Key activities:
AND
CELEBRATE
!!
AND
CELEBRATE
Signature
of all papers
of the contract by both
Submit commercial
proposal

parties;

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##2.15
2.15 Validate
Validateand
andSign
SignContract
Contract

Submit
technical proposal

screening
2.16
2.16

2.9
2.9

2.10
2.10

2.11
2.11

2.12
2.12

S5

Submit commercial
proposal

Key activities:

2.13
2.13

2.14
2.14

2.15
2.15

Negotiation and final arrangements

Project Management processes interface

Signature of all papers of the contract by both


parties;
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##2.15
2.15 Validate
Validateand
andSign
SignContract
Contract

Submit
technical proposal

screening
2.16
2.16

2.9
2.9

2.10
2.10

2.11
2.11

2.12
2.12

S5

Submit commercial
proposal

Key activities:

2.13
2.13

2.14
2.14

2.15
2.15

Negotiation and final arrangements

Project Management processes interface

Update Sales Forecast.

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##2.16
2.16 Review
ReviewProcess
Process

Submit
technical proposal

lessons learned

screening
2.16
2.16

2.9
2.9

2.10
2.10

Purpose:

2.11
2.11

2.12
2.12

S5

Submit commercial
proposal

2.13
2.13

2.14
2.14

2.15
2.15

2.16
2.16

Negotiation and final arrangements

Project Management processes interface

Identify lessons learned in order to improve the


selling process;
Continue the process of developing relationships
with the customer in order to sell more in the future

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##2.16
2.16 Review
ReviewProcess
Process

Submit
technical proposal

lessons learned

screening
2.16
2.16

2.9
2.9

2.10
2.10

2.11
2.11

2.12
2.12

S5

Submit commercial
proposal

Key activities:

2.13
2.13

2.14
2.14

2.15
2.15

2.16
2.16

Negotiation and final arrangements

Project Management processes interface

Conduct benefits & concerns meeting with cross


functional team members;
Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##2.16
2.16 Review
ReviewProcess
Process

Submit
technical proposal

lessons learned

screening
2.16
2.16

2.9
2.9

2.10
2.10

2.11
2.11

2.12
2.12

S5

Submit commercial
proposal

Key activities:

2.13
2.13

2.14
2.14

2.15
2.15

2.16
2.16

Negotiation and final arrangements

Project Management processes interface

Document reasons for winning or losing the order;

Oil, Gas and Petrochemicals

BID & PROPOSAL PROCESS FLOW


##2.16
2.16 Review
ReviewProcess
Process

Submit
technical proposal

lessons learned

screening
2.16
2.16

2.9
2.9

2.10
2.10

2.11
2.11

2.12
2.12

S5

Submit commercial
proposal

Key activities:

2.13
2.13

2.14
2.14

2.15
2.15

2.16
2.16

Negotiation and final arrangements

Project Management processes interface

Establish,
document
and
communicate
improvements , specifically regarding to :
the proposal itself;
the Bid & Proposal process.
Oil, Gas and Petrochemicals