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The Structure of the Proposal 16 453

sion bridge should describe other suspension bridges it has built. It should
also focus on the equipment and facilities the company already has and on
the management structure that will ensure the project will go smoothly.

budget

Good ideas aren’t good unless they’re affordable. The budget section of a pro-
posal specifies how much the proposed program will cost.
Budgets vary greatly in scope and format. For simple internal proposals,
add the budget request to the statement of the proposed program: “This
study will take me two days, at a cost of about $400” or “The variable-speed
recorder currently costs $225, with a 10 percent discount on orders of five or
more.” Or present a brief budget such as the following:

budget
Following is an itemized budget for our proposed research.

Name Hours Hourly Cost ($)
rate ($)

Jessie Pritiken 10 17 170
Megan Turner 10 15 150

total 320

For more-complicated internal proposals and for all external proposals, in-
clude a more-explicit and complete budget.
Most budgets are divided into two parts: direct costs and indirect costs.
• Direct costs include such expenses as salaries and fringe benefits of program
personnel, travel costs, and necessary equipment, materials, and supplies.
• Indirect costs cover the intangible expenses that are sometimes called
overhead: general secretarial and clerical expenses not devoted exclu-
sively to any one project, as well as operating expenses such as utilities
and maintenance. Indirect costs are usually expressed as a percentage —
ranging from less than 20 percent to more than 100 percent — of the di-
rect expenses.

appendixes
Many types of appendixes might accompany a proposal. Most organizations
have boilerplate descriptions of the organization and of the projects they
have completed. Another popular kind of appendix is the supporting letter: a
testimonial to the supplier’s skill and integrity written by a reputable and

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