AbstractProblem Domain DescriptionGlossary of termsDDescription of the programDetail requirements for bidding systemUse CasesQuotation and Bidding System Proposal Yi chen <[email protected]> John ericksan <[email protected]> Yuhui Jiao <[email protected]> & Mohamed Fayad, PhD <[email protected]> Abstract The problem is essentially one of developing a bidding/estimation system for a small subcontractor in the telecommunications infrastructure industry. Currently all bidding and estimation is done by hand and with spreadsheets, and nothing in the process is automated. A bidding and estimation system would improve the response time and accuracy of the process. Problem Domain Description The system is a quotations management system for a small, second-tier subcontractor in the telecommunications industry. The company has been in business for approximately 30 years, serving such customers as AT&T, Rockwell International [now Alcatel Network Systems], Sprint PCS, Lincoln Telephone [now AllTel], and similar companies, as well as other contractors and material vendors in the telecommunications infrastructure industry. The company currently tracks all quotations and jobs [successful quotations] in an Excel spreadsheet, and an Access database, so multiple data entry [and related accuracy] is an issue here. A copy of one spreadsheet bid [RFQ] response, as still in use by the company is included in the appendix. The customer sends RFQs [Requests For Quotation] to a group of their preferred vendors, who each estimate material and labor costs, based on the requirements specified in the quotation. The customer will select the bidder [contractor] who mostly closely matches their requirements, and usually, this means the contractor who responds with the lowest total price. A copy of an actual RFQ is included in the appendix. Each RFQ is an aggregation of jobsites [locations where the actual work is to be performed]. So, a given quotation will consist of at least one jobsite, but can easily include 10 or 30 or more sites. Larger contractors might be sent RFQs including hundreds or more jobsites. Each jobsite can be seen as an aggregation of line items specific to that site. For example, AllTel’s cell site at 27th and Old Cheney Road might be a jobsite [the company actually built that cell cite a number of years ago]. At that site there is a list of items that the customer wants to be completed. For this system, we have called these line items sitelines, but that is just an arbitrary name. The line items will normally be a material item, i.e. an DB212 antenna, with an associated labor line item that describes installation of the material items. In this way, the contractors can estimate the labor costs for installing the line items. The material [DB212 antenna], may be specified as either customer furnished or contractor furnished. If the customer furnishes an item, then the material line would naturally be blank or zero. If the contractor is to furnish the item, then the contractor must contact a vendor who supplies the specified material, for the cost of that material item. The vendor will respond with pricing for the item. Of course this process is not completed separately for each item, but rather a list of materials by jobsite, and line item is normally completed and sent to the vendor for pricing. Problems that commonly occur with this process are that different contractors may interpret the RFQ differently. This causes problems in that the customer may be faced with a number of RFQ responses that are really not the same [the apples and oranges problem]. To alleviate this type of confusion, there is usually a formal addendum process involved with most large RFQs. An addendum can be issued at the request of the Customer, or any of the vendors, in response to questions or clarifications thoughtnecessary to the specifications. Addendums are issued before the RFQ due date, and contractors are expected to include responses to each addendum. A related but different problem that commonly occurs is that circumstances or requirements at a given jobsite might change after the contractor has been awarded the job. In this case that changes are normally handled by change orders. Change orders are not part of this system, although they would be part of a future order tracking system. Occasionally, customers will request pricing for an item that has been discontinued or is ‘out of stock’ for the foreseeable future. Contractors then respond with pricing for alternate [equivalent] materials. Unless the customer can include this equivalent material in an addendum, they are likely to receive alternate pricing for several items, again leading to the apples and oranges problem. If a contractor is the successful bidder on a given RFQ, then the customer will issue a contract for the project. Contracts usually specifically refer to or include the original RFQ as source documentation for the contract. For contractors, the successful bids/contracts become orders. Order tracking is not part of this system, but is a needed item for the future. Glossary of terms Customer the company, organization or individual who sends RFQs to contractors. A company that has some sort of work they want someone else to do for a price. Vendor a company who provides a requested product or service to another company, organization or person for a given price. RFQ Request For Quotation. A formal, usually written request, sent to a relatively small number of vendors who each respond with their best price for completing the work as specified in the RFQ. Jobsite RFQs can be considered aggregations of Jobsites, in that each RFQ will consist of at least one jobsite. Jobsites are the specific locations where the products [material] or services [labor] are to be delivered. Siteline Each jobsite can be considered as an aggregation of sitelines, or line items that specify in detail exactly what single product or service is to be provided. Jobsites will consist of at least one siteline. Addendum A change to the RFQ issued before the due date, and expected to be responded to by each contractor in their pricing response. Order A successful RFQ response – results in a contract with the customer. Change Order A change to the specifications after the contract has been signed. Block Diagrams Customer Vendor Constructor Company Block diagram for quote processRFQ Query material