Lone Star Consulting Firm submitted a proposal to Alamo Research Institute for an Innovative Capabilities Audit. The audit will evaluate ARI's strategic management capacity, resource availability and allocation, capacity to understand technological environments, and ability to perform competition analyses. A formal report of the results will be submitted to help ARI make informed decisions.

1. Lone Star Consulting Firm
321 One Way Dr.
San Antonio, Texas 78217
April 16, 2012
Alamo Research Institute
San Antonio, Texas
Dear Alamo Research Institute,
Enclosed is the proposal for an Innovative Capabilities Audit.
As representatives of Lone Star Consulting Firm, we appreciate this opportunity to present to you our proposal for an
Innovative Capabilities Audit. We recognize that Alamo Research Institute is one of the largest research &
development organizations in San Antonio, Texas. We are honored to submit a proposal to assist you with increasing
your firm’s innovation, research & development, and overall quality. Based on the audit that we provide, we are
confident you will be pleased with our proposal.
Our firm consists of highly qualified individuals from a variety of backgrounds and experiences in all levels of
management. Our expertise consists of data and financial analytics, information security and technology, mechanical
engineering, and audit. Additionally, our consulting firm has the background and experience necessary to follow a
disciplined and strict time line. Our proposal presents detailed plans that can formulate the strategic management
capacity, resource availability and allocation, capacity to understand technological environment and perform
competition analysis.
Please let us know if you would like to further discuss the details of our proposal and ask any questions regarding our
response.
Sincerely,
James Groh
Enrique Loera
Johan Lund
Sonok Rivetto

2. Scope Statement
The Innovative Capabilities Audit will accomplish the requirements specified by the Alamo Research Institute. Firstly,
this audit will evaluate the strategic management capacity of ARI. The requirements include planning, executing, and
evaluating the assessment of ARI management’s capacity to support innovation. Furthermore, it includes evaluation
of the capacity for one management group to work with other levels of management groups including top, middle,
and venture managers. The team will evaluate the strategic importance of the new incentives and how it lines up
with the overall ARI’s core capabilities.
Secondly, this audit will evaluate the resource availability and allocation. In order to accomplish this, an assessment
of the availability, strength, range of skills, and competencies of internal resources will be performed. A review of
resource spending and allocation along with activity tracking within different organization endeavors will also be
executed. Additionally, an assessment of how corporate funding is utilized within ARI is to determine that funding is
appropriately allocated. This analysis will help support strategic and tactical management planning for ARI’s potential
growth and efficiency of resource use.
Thirdly, the capacity to understand technological environments will be assessed. This assessment will include the
ability to understand the technological environment that ARI currently operates and the future technological
environment it will operate in will be performed. ARI’s ability to assess and determine which technology or research
department is their strongest and identifying technological opportunities for business units will be reviewed. ARI’s
capacity for technological forecasting and forecasting impacts between technological areas will also be evaluated in
order to facilitate impeding external forces relevant to business units, research divisions, and opportunities.
Finally, an assessment of the firm’s ability to perform competition analyses will be performed. ARI’s past competition
analyses will be collected and pertinent data will be extracted for analysis. The analytical methods employed by the
firm will be judged based on completeness, accuracy, and timeliness, with each variable evaluated on different
criteria. The firm’s analysis of its primary competitor will be compared to an independent study conducted by Lone
Star, which will investigate the competitor’s operations, marketing, finance, and corporate strategy. Finally, the firm
will be judged on its ability to anticipate external forces such as the entry of new competitors and macroeconomic
forces.
A formal report will be submitted with summary of the results. ARI will be able to use the data provided to make
informed decisions.

3. Work breakdown Structure
Management capacity to
support new initiatives
1.0
Top Management Middle Management New Venture Managers
1.1 1.2 1.3
Long term corporate Support for new Build new
Business Strategy initiatives organizational
(1.1a) (1.2a) capabilities
(1.3a)
Strategic importance of Corporate strategy
initiatives framework for new
(1.1b) initiatives Business Strategy for
(1.2b) new initiatives
(1.3b)
Relate initiatives to core
capabilities Coach new venture
(1.1c) managers
(1.2c)
Resource Availability and
Allocation
(2.0)
Corporate Funding Breadth and Depth of Skills Distinctive Competencies Distribution of Research and
Levels Assessment Assessment Assessment (2.3) Development Assessment
(2.1) (2.2) (2.4)
Research and
Current Business
Development
Operations
Personnel
(2.4a)
(2.2a)
Engineering Exploratory Research
Personnel (2.4b)
(2.2b)
New Business
Market Research Definitions & New
Personnel Business development
(2.2c) (2.4c)

4. Understanding Technological
Environment
3.0
Determine Strength and Technological Forecasting Technology Roadmaps
Insufficiencies
3.2 3.3
3.1
Financial Analysis
Evaluate Preliminary
3.1a Assessing Technologies Phase
3.2a 3.3a
Previous Audit Results
3.1b Evaluate Developmental
Phase
Identify Technologies 3.3b
3.2b
Evaluate Follow up Activity
Needs Analysis
3.3c
3.1c
Capacity to Perform
Competition Analyses
4.0
Data Collection Analytical Methods Primary Competitor External Forces
4.1 4.2 4.3 4.4
Accuracy Operations
(4.2a) (4.3a)
Completeness
Marketing
(4.2b)
(4.3b)
Timeliness Finance and
(4.2c) Strategy
(4.3c)

5. Work Packages
Example work packages were included showing the details of the work that will be performed. All work
packages can be provided upon request.
Project: Innovative Work Package (1.1a): Top Management Capabilities for long-term corporate
Capabilities Audit development
Description: Evaluate top Deliverables: Results of available capacity for top management
management capacity to Input:
define long-term corporate
development strategy
Direct Labor Activities: Labor Specialty Effort (hrs) Cost
Plan for top management Senior Professional Specialist 24 $2,880.00
capacity for long term Associate Professional Specialist 16 $1,440.00
strategy Clerical 8 $160.00
Senior Professional Specialist 24 $2,880.00
Execute success of long term
Associate Professional Specialist 24 $2,160.00
strategies
Clerical 24 $480.00
Executive 8 $1,920.00
Evaluate Data Collection
Senior Professional Specialist 8 $960.00
Total Direct Labor 136 $12,880.00
Direct Non-Labor Activities (Material Costs-Office Supplies,
Computer Expense $100.00
Direct Overhead (Rated at 40% of Direct Labor Costs) $5,152.00
Total Direct Cost (Labor + Non-Labor + Overhead) $18,132.00
General Administrative Costs (Rated at 10% of Total Direct Costs) $1,813.20
Total Cost (Total Direct Cost + General Administrative Costs) $19,945.20
Profit (10% of Total Cost) $1,994.52
Total Work Package Cost $21,939.72
Project: Innovative Work Package (2.1): Resource Availability and Allocation - Corporate Funding
Capabilities Audit
Description: Plan and Deliverables: Results from Corporate Funding Assessment
execute assessment of Input: Work Packages (1)
corporate funding to
determine if funding is
being appropriately
allocated to research and
development activities.
Direct Labor Activities: Labor Specialty Effort (hrs) Cost
Planning for Corporate Senior Professional Specialist ($120) 24 $2,880.00
Funding Clerical ($20) 3 $60.00
Associate Professional Specialist
Execute Fieldwork of ($90) 40 $3,600.00
Corporate Funding Senior Technician ($80) - Helps to
pull data from database for analysis 16 $1,280.00
Senior Professional Specialist ($120) 16 $1,920.00
Evaluate Fieldwork Testing Associate Professional Specialist
($90) 8 $720.00
Clerical ($20) 1 $20.00
Review of Assessment
Executive ($240) 16 $3,840.00
Total Direct Labor 124 $14,320.00
Direct Non-Labor Activities (Material Costs-Office Supplies,
Computer Expense $100.00
Direct Overhead (Rated at 40% of Direct Labor Costs) $5,728.00
Total Direct Cost (Labor + Non-Labor + Overhead) $20,148.00
General Administrative Costs (Rated at 10% of Total Direct Costs) $2,014.80
Total Cost (Total Direct Cost + General Administrative Costs) $22,162.80
Profit (10% of Total Cost) $2,216.28
Total Work Package Cost $24,379.08

6. Project: Innovative Capabilities
Audit Work Package (3.1 a): Understanding Technological Environment- Financial Analysis
Description: Evaluate and assess Deliverables: Determine which areas are the strongest and which areas have the most
each research areas financial potential for growth.
situation Input:
Direct Labor Activities: Labor Specialty Effort (hrs) Cost
Evaluate cash inflows and Senior Professional Specialist 24 $2,880.00
outflows Associate Professional Specialist 16 $1,440.00
Senior Technician 8 $640.00
Evaluate Budgets 24
Senior Professional Specialist $2,880.00
Associate Professional Specialist 24 $2,160.00
Apprentice Professional Specialist 8 $480.00
Review Financial Resources Executive 8 $1,920.00
Senior Professional Specialist 8 $960.00
Total Direct Labor 120 $13,360.00
Direct Non-Labor Activities (Material Costs-Office Supplies, Computer
Expense $200.00
Direct Overhead (Rated at 40% of Direct Labor Costs) $5,344.00
Total Direct Cost (Labor + Non-Labor + Overhead) $18,904.00
General Administrative Costs (Rated at 10% of Total Direct Costs) $1,890.40
Total Cost (Total Direct Cost + General Administrative Costs) $20,794.40
Profit (10% of Total Cost) $2,079.44
Total Work Package Cost $22,873.84
Project: Innovative Capabilities Work Package (4.1): Data Collection
Audit
Description: Plan and execute Deliverables: Results from Data Collection
collection of firm's past Input:
Competition Analyses.
Direct Labor Activities: Labor Specialty Effort (hrs) Cost
Plan Data Collection Senior Professional Specialist 24 $2,880.00
Data Collection Associate Professional Specialist 24 $2,160.00
Apprentice Professional Specialist 24 $1,440.00
Clerical 24 $480.00
Evaluate Data Collection Executive 8 $1,920.00
Total Direct Labor 104 $8,880.00
Direct Non-Labor Activities (Material Costs-Office Supplies, Computer
Expense $100.00
Direct Overhead (Rated at 40% of Direct Labor Costs) $3,552.00
Total Direct Cost (Labor + Non-Labor + Overhead) $12,532.00
General Administrative Costs (Rated at 10% of Total Direct Costs) $1,253.20
Total Cost (Total Direct Cost + General Administrative Costs) $13,785.20
Profit (10% of Total Cost) $1,378.52
Total Work Package Cost $15,163.72

7. Project Schedule
Gantt chart sample from MS Project. This portion of the project Gantt chart depicts work package 2.1-
Corporate Funding, of the Resource Availability and Allocation section of Lone Star’s audit. Tasks are depicted
in blue and summary tasks in black. The entire project consists of 158 tasks (including subtasks) and some tasks
were delayed or split due to resource constraints, therefore presenting the entire project Gantt chart here
would be cumbersome, but it can be provided upon request.
6 6 6 7 7 7 8 8 8 9 9 9 1
6 / / / 7 7 / / / 8 / / / 9 9 / / / 0 10 10 10
/ 1 1 2 / / 1 2 2 / 1 1 2 / / 1 2 3 / /1 /2 /2
3 0 7 4 1 8 5 2 9 5 2 9 6 2 9 6 3 0 7 4 1 8
Executive 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Senior
Professional
Specialist 2 4 4 4 4 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Associate
Professional
Specialist 2 4 4 4 4 4 1 1 1 0 0 0 0 1 1 1 1 1 1 1 1 0
Apprentice
Professional
Specialist 2 3 3 3 2 0 1 3 1 0 1 1 1 0 0 0 0 0 0 0 0 0
Senior
Technician 1 1 0 1 1 0 0 1 0 0 0 0 0 1 1 0 0 0 0 1 0 0
Junior
Technician 0 0 0 1 1 0 1 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0
Clerical 2 2 3 4 1 1 0 1 1 1 0 1 0 1 0 1 0 1 1 0 1 0
Human Resource Schedule. The number of each type of labor specialty assigned to the project is provided for
each week. This schedule is designed to minimize the weeks when an individual must work more than 40 hours
per week or less than 20. Although some positions require individuals leave and return to the project when
labor is required, many individuals will not return once they leave the project, thus, eliminating the need for
people to reorient themselves with the project upon their return. This is the best solution given the resource

8. needs of the project. Lone Star will receive ARI’s requests for the retention of specific individuals during the
project, but reserves control over its labor force.
Labor Specialty Hours/Week
Executive 16.935
Senior Professional Specialist 26.91591
Associate Professional Specialist 26.26471
Apprentice Professional Specialist 30.9103
Senior Technician 19
Junior Technician 16
Clerical 13.07
Average work week for each labor specialty. Given the number of individuals of each labor specialty assigned
to each week and the specialty’s required labor hours for that week the average work week for each specialty
can be computed. Individuals in the position of Apprentice Professional Specialist devote a greater portion of
their time to a single project and thus, are scheduled a significant amount of time on the project, while the
Executive balances multiple projects and is scheduled for less time. Furthermore, the positions more relevant
to the project are allotted more time than those with less application, e.g. the various Professional Specialists
are required for more tasks than the Technicians. The exact number of hours each specialty works each week
can be provided upon request, but this table, coupled with the Human Resource Schedule, should provide ARI
with an approximation of the hours each position is available should one need to be contacted regarding the
project.

9. Lone Star Consulting
Cost Estimate
JOB DESCRIPTION
Lone Star Consultants will perform a thourogh Innovative Capabilities
Audit of Alamo Research Institute and its five divisions.Specifically
evaluating strategic management capacity, resources availibilty and
allocation, the capcity to understand the technological environment, and
capacity to perform competition analyses.
ITEMIZED ESTIMATE: TIME AND COST AMOUNT
Direct Labor $ 378,340.00
Non Direct Labor $ 9,400.00
Overhead $ 151,336.00
General and Adminstrative $ 53,999.00
Profit $ 59,399.08
Direct Labor Hours 3,841.00
$652,474.08
Price Estimate for Services
Innovative Capabilities Audit- Strategic Management Capacity
Cost Description 1.1a 1.1b 1.1c 1.2a 1.2b 1.2c 1.3a 1.3b
Hours worked on job 136 136 136 136 136 136 136 136
Direct Labor Cost $ 12,880.00 $ 12,880.00 $ 12,880.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00
Overhead Cost $ 5,152.00 $ 5,152.00 $ 5,152.00 $ 4,000.00 $ 4,000.00 $ 4,000.00 $ 4,000.00 $ 4,000.00
Direct Non Labor Cost $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00
General and Adminsitrative $ 1,813.20 $ 1,813.20 $ 1,813.20 $ 1,410.00 $ 1,410.00 $ 1,410.00 $ 1,410.00 $ 1,410.00
Profit $ 1,994.52 $ 1,994.52 $ 1,994.52 $ 1,551.00 $ 1,551.00 $ 1,551.00 $ 1,551.00 $ 1,551.00
Total cost $21,939.72 $21,939.72 $21,939.72 $17,061.00 $17,061.00 $17,061.00 $17,061.00 $17,061.00
Total Phase Cost: $151,124.16
Total Direct Hours: 1088
Price Estimate for Services
Innovative Capabilities Audit- Resource Availability and Allocation
Cost Description 2.1 2.2a 2.2b 2.2c 2.3 2.4a 2.4b 2.4c
Hours worked on job 124.00 124.00 124.00 124.00 80.00 127.00 132.00 126.00
Direct Labor Cost $ 14,320.00 $ 12,320.00 $ 12,320.00 $ 12,320.00 $ 10,080.00 $ 14,760.00 $ 15,280.00 $ 14,740.00
Overhead Cost $ 5,728.00 $ 4,928.00 $ 4,928.00 $ 4,928.00 $ 4,032.00 $ 5,904.00 $ 6,112.00 $ 5,896.00
Direct Non Labor Cost $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00 $ 100.00
General and Adminsitrative $ 2,014.20 $ 1,734.80 $ 1,734.80 $ 1,734.80 $ 1,421.20 $ 2,076.40 $ 2,149.20 $ 2,073.60
Profit $ 2,216.28 $ 1,908.28 $ 1,908.28 $ 1,908.28 $ 1,563.32 $ 2,284.04 $ 2,364.12 $ 2,280.96
Total cost $24,378.48 $20,991.08 $20,991.08 $20,991.08 $17,196.52 $25,124.44 $26,005.32 $25,090.56
Total Phase Cost: $180,768.56
Total Direct Hours: 961.00
Price Estimate for Services
Innovative Capabilities Audit- Capacity to Understand Technological Environment
Cost Description 3.1a 3.1.1a 3.1b 3.2a 3.2b 3.3a 3.3b 3.3c
Hours worked on job 120 128 120 120 120 120 120 120
Direct Labor Cost $ 13,360.00 $ 12,000.00 $ 12,720.00 $ 12,560.00 $ 12,560.00 $ 12,000.00 $ 11,600.00 $ 11,840.00
Overhead Cost $ 5,344.00 $ 4,800.00 $ 5,088.00 $ 5,024.00 $ 5,024.00 $ 4,800.00 $ 4,640.00 $ 4,736.00
Direct Non Labor Cost $ 200.00 $ 100.00 $ 100.00 $ 600.00 $ 500.00 $ 100.00 $ 500.00 $ 100.00
General and Adminsitrative $ 1,890.40 $ 1,690.00 $ 1,790.80 $ 1,818.40 $ 1,808.40 $ 1,690.00 $ 1,674.00 $ 1,667.60
Profit $ 2,079.44 $ 1,859.00 $ 1,969.80 $ 2,000.24 $ 1,989.24 $ 1,859.00 $ 1,841.00 $ 1,834.36
Total cost $22,873.84 $20,449.00 $21,668.60 $22,002.64 $21,881.64 $20,449.00 $20,255.00 $20,177.96
Total Phase Cost: $169,757.68
Total Direct Hours: 968.00

10. Price Estimate for Services
Innovative Capabilities Audit- Capacity to Perform Competitive Analyses
Cost Description 4.1a 4.2a 4.2b 4.2c 4.3a 4.3b 4.3c 4.4
Hours worked on job 104.00 96.00 96.00 96.00 120.00 112.00 116.00 112.00
Direct Labor Cost $ 8,880.00 $ 10,360.00 $ 10,240.00 $ 10,240.00 $ 12,080.00 $ 10,320.00 $ 11,040.00 $ 11,760.00
Overhead Cost $ 3,552.00 $ 4,144.00 $ 4,096.00 $ 4,096.00 $ 4,832.00 $ 4,128.00 $ 4,416.00 $ 4,704.00
Direct Non Labor Cost $ 100.00 $ 100.00 $ 3,200.00 $ 300.00 $ 600.00 $ 100.00 $ 100.00 $ 1,100.00
General and Adminsitrative $ 1,253.20 $ 1,460.40 $ 1,753.60 $ 1,555.60 $ 1,751.20 $ 1,454.80 $ 1,555.60 $ 1,756.40
Profit $ 1,378.52 $ 1,606.44 $ 1,928.96 $ 1,711.16 $ 1,926.32 $ 1,600.28 $ 1,711.16 $ 1,932.04
Total cost $ 15,163.72 $ 17,670.84 $ 21,218.56 $ 17,902.76 $ 21,189.52 $ 17,603.08 $ 18,822.76 $ 21,252.44
Total Phase Cost: $ 150,823.68
Total Direct Hours: 852.00
Project Risk Assessment
Key risks were identified and written as risk statements to gain an understanding of the types of issues that
could face the project. Risk responses were also created to help mitigate the potential that these risks were to
become realized.
# Risk Statement Risk Response
1 If each work package is not completed on time, Ensure that there is an appropriate amount of planning spent on
then the project could be delayed and not each work package (assessment) to gain an understanding of
completed on schedule. the scope and what needs to be completed for fieldwork
assessments.
2 If a consultant is on leave, absent, or sick for During the ARI audit, ensure that other secondary resources
extended period of time then the schedule may from Lonestar Consulting Firm are on standby in the case that a
be delayed. selected consultant is unexpectedly unavailable.
3 If the audit has abnormally complex or Ensure the right consultants with right history of experience
complicated assessments the quality of the audit from the firm are assigned to the project.
results may be decreased and over schedule.
4 If the audit requirements are not appropriately Preliminary discussions with ARI management who are
defined then the scope and created work requesting the innovative capabilities audit will be conducted to
packages will not be completed on time or with mitigate any undefined areas that have ambiguity.
the right assessments.
5 If ARI personnel do not appropriately cooperate Ensure that a kick-off is conducted emphasizing partnership with
with Lonestar consultants regarding the audit ARI and enlist the help of ARI management’s commitment to
then the right evidence may not be obtained and appropriately spend the right amount of time and resources on
the schedule overrun. the audit.
6 If the results of the assessment do not Ensure that Lonestar Consulting Firm’s executive spends a
appropriately address ARI’s concerns and portion of time on each work item that is performed and
increase their innovative capabilities then delivered to ensure that the appropriate quality and insight is
Lonestar Consulting reputation may decrease provided.
with potential contract renegotiations by ARI.
7. If there are changes in the schedule mid-audit, Throughout the audit, apply corrections and guidance to the
then there may be a delay which may potentially schedule and resources as needed to stay on schedule and
cause confusion and misallocation of resources. budget.

11. Earned Value Plan
Performance Measurement Baseline
$700,000.00
FINISH
$600,000.00 $581,578.80
$558,353.40
$535,112.60
$523,692.40
$500,000.00 $508,059.20
$498,517.80
$469,803.40
$443,586.00
$400,000.00
$357,321.80
$300,000.00
$282,961.80
$247,238.20
$200,000.00 START
$158,274.60
$132,547.80
$100,000.00 $125,655.20
$-
11-Jun 18-Jun 25-Jun 2-Jul 9-Jul 16-Jul 23-Jul 30-Jul 6-Aug 13-Aug 20-Aug 27-Aug 3-Sep 10-Sep 17-Sep 24-Sep 1-Oct 8-Oct 15-Oct 22-Oct
11-Jun 18-Jun 25-Jun 2-Jul 9-Jul 16-Jul 23-Jul 30-Jul 6-Aug 13-Aug 20-Aug 27-Aug 3-Sep 10-Sep 17-Sep 24-Sep 1-Oct 8-Oct 15-Oct 22-Oct
CUM PV $125,65 $132,54 $158,27 $247,23 $282,96 $357,32 $443,58 $443,58 $469,80 $498,51 $498,51 $508,05 $523,69 $535,11 $535,11 $558,35 $558,35 $558,35 $581,57 $581,57
PV $125,65 $6,892. $25,726 $88,963 $35,723 $74,360 $86,264 $- WEEK$28,714
$26,217 OF $- $9,541. $15,633 $11,420 $- $23,240 $- $- $23,225 $-
For the Performance Measurement Baseline, fixed formula (50/50) technique was used to determine the
Planned Value (PV).
Alamo Research Institute Organization Chart
Chief Executive Officer
Financial Office Division Marketing Division Engineering Division
(Includes Aerospace Electronics,
Data Systems, Biomedical
CFD – Internal Engineering, Nanotechnologies,
Funding Group and Materials Engineering
Divisions)
Engineering Division –
Advanced R&D
Groups
Division of Business Venture Mgmt Division Legal Counsel
Operations
Business Continuity
Group
Information
Technology Group
The following divisions and groups would need to be coordinated with to have appropriate assessments and
discussions to complete the innovative capabilities audit.

12.  Leads in business operations, engineering, and marketing to perform an assessment on skills
 Management in Internal funding to understand the process of how funding is being allocated
 Key individuals within the Financial Office Division to discuss and assess financial investments and
competitors
 Management in Operations will be utilized to evaluate the business operation practices
 Advanced R&D groups are needed to assess the allocation to exploratory research
 Senior Management and CEO to discuss new and developing businesses, corporate strategy &
framework, and entrepreneurial initiatives
 Mid-level management in all divisions will need to be utilized to assess communication with top level
management and to assess their capacity to coach new ventures.
 Leads and mid-level management in the Venture Management Division will be needed to assess
capacity, and business strategy for initiatives
 Lawyers in Legal Counsel to discuss processes surrounding patents
 Key management within the Marketing Division to discuss customers, promotions, and sales
 Key leaders within the Business Continuity area to discuss external exposures that could impact
business operations and other divisions
 Information Technology management to perform an assessment on technological factors, technology
roadmaps, and forecasting
During the audit, we will emphasize the importance for key individuals to participate so that accurate and valid
information will be gathered to perform a quality audit. Also during the kick-off meeting and other key
meetings with ARI executives, we will emphasize the need to have particular resources available during specific
weeks which they are needed.
Contract Type
Lone Star Consulting is grateful to be considered by the Alamo Research Institute as a candidate to perform an
Innovative Capabilities Audit. After careful evaluation, Lone Star Consulting proposes a fixed price contract.
We are confident in our ability to stay on schedule and within our proposed cost.
Proposed Contract Offer:
Cost Estimate: Cex= $652,500.00
Fee= $10,000.00
Price= $662,500.00
Our proposed start time is June 4th, with a projected completion date of October 30 th. We will operate during
the standard work week of Monday through Friday, 8 AM to 5 PM with a one hour break. Any proposed
schedule changes or anticipated inconvenience to ARI’s daily business operations should be addressed to Lone
Star Consulting prior to the project’s commencement. During the duration of the five month project, Lone Star
Consulting and its employees will perform an Innovative Capabilities Audit for each research division.
Specifically, we will be evaluating strategic management capacity, resources availability and allocation, the
capacity to understand the technological environment, and capacity to perform competition analyses. The
data collected will be evaluated, reviewed, and the findings presented to ARI in a formal presentation where
ARI can utilize the information to make informed decisions. The value of this service is expressed in Cex, while
the Fee is a standard contracting fee. Any significant disagreements that arise during the project regarding how
Lone Star is carrying out the audit should be addressed to the project’s Executive in order to satisfy these
disputes in a timely fashion. The proposed contract offer is valid for 90 days. After 90 days, the contract and
proposal will be subject to reevaluation to ensure ARI that Lone Star Consulting is assessing any market or
industry changes. Lone Star Consulting appreciates your time and we guarantee that we will satisfy these
contractual obligations. Lone Star Consulting looks forward to satisfying Alamo Research Institutes needs.