2005 PRICE INSight
PRICE H Improves Electro-Optical Company's Bid/No Bid Decisions, Proposal Process and Profitability
Among PRICE Systems' global customer base is a world leader in the design, development, and manufacture of precision optics and electro-optical systems and sensors for defense, aerospace, scientific, and commercial applications. Accurate cost estimating plays a critical role in the customer's bid analysis to assess the profitability of potential new business, and during proposal development when targeted business can be won or lost.
For years, the customer used an internal system of spreadsheets and a team of industry-seasoned experts to provide information for bid analysis and proposal work. This methodology of manual "bottom up" estimating however was recognized to be inefficient after the emergence of PRICE tools for parametric modeling. An increase in requests to see parametric models in business proposals provided the final incentive for the customer to move forward with a PRICE Systems' solution.
The customer implemented PRICE H to satisfy a market demand, and for faster, more credible and repeatable processes for bid analysis and proposal development. At stake was their competitiveness and profitability on billions of dollars worth of aerospace and defense industry contracts.
Using PRICE H, the customer has reduced their time to make bid/no bid decisions from days to hours and dramatically streamlined their proposal development process by more than 50%. They now save approximately one-third on estimating costs than with their prior methodology, and are better positioned to successfully pursue more profitable business.
"With PRICE tools and best practices, our expert staff works smarter and more productively," said a company spokesperson. "PRICE equips us to better communicate our true capabilities to meet and exceed customer's specific requests in our RFP responses."
