SRO provides both formal and informal (ballpark) cost estimates to clients/researchers.  The Proposal Development Group facilitates all proposal package development and works together to define the work scope and estimate costs for proposed projects. 

Client Interview Form

Activities for this task could include, but are not limited to:

2.2.1 Assign Technical Leader

Researchers requesting a proposal for SRO services are referred to the Director of SRO’s Proposal Development Group or the Proposals and Contracts Supervisor.  A Technical Leader is assigned to follow up with the researcher, to get information about the purpose of the research and the work scope.

2.2.2 Decision to bid

If the technical lead is unsure of whether or not SRO should bid on the work, he/she will bring it to the SRO Administrative Group for discussion and a final decision.

2.2.3 Assign Survey Operations (SO) proposal number

The Technical Leader requests an SO budgeting number from SRO’s Proposal Development Group. SO budgeting numbers are used to track proposal efforts.

2.2.4 Request budget

The Technical Leader writes a task-based work scope description and budget request, which is submitted to the Proposal Development Group.

2.2.5 Assign proposal team

When the budget request has been received, the Proposal Development Group assigns staff members to a proposal team.  The size and composition of the proposal team will vary depending on the nature of the budget request.

2.2.6 Develop budgets

Developing budgets is usually an iterative process, where the Proposals Coordinator or the Research Process Coordinator (referred to as the Financial Leader) and Technical Leader (and other proposal team members) work together to refine the work scope and assumptions to arrive at a budget and work scope that meets the client’s requirements and is our best estimate of true SRO costs.  This may involve collecting cost data or other information from previous studies and negotiating work scope changes with the client. Below is a list of basic elements of design that should be included in all proposals:

• Project dates;
• Funding source;
• Sample type;
• Location of sample;
• Number of interviews;
• Mode of data collection;
• Response rate target;
• Average interview length;
• Number of variables in questionnaire;
• Respondent payments;
• Field period;
• Number of interviewers;
• Training design;
• Interviewer hours per interview (HPI);
• Estimated interviewer attrition rate;
• Expected level of post-production processing; and
• Deliverables.

2.2.7 Prepare budget package

The Technical and Financial Leaders work together to prepare a budget package.  SRO may provide either a ballpark or a formal budget package, depending on the needs of the client.  See Sections 2.2.10 and 2.2.11 for more information on ballpark and formal budget packages.

2.2.8 File final budget spreadsheets and accompanying documents 

Final budget spreadsheets, work scope memos, and other documents (e.g., budget justification text and technical or business proposals) are filed in a “submitted” subfolder.

2.2.9 Review and approval

After the budget package has been prepared, it goes through the review and approval process. This process varies depending on the researcher’s affiliation and the type of package.  The approval process is described in Section 2.3.

2.2.10 Ballpark budgets

Ballpark budgets are informal, non-binding estimates of cost.  They are used to provide the client with preliminary cost estimates that can be used in the planning stages to help the client refine the formal work scope request, or to provide a quick cost estimate where speed is more essential than precision.  The ballpark budget spreadsheet can be prepared by the Technical Leader or by the Research Process Coordinator. Ballpark budget packets include a work scope memo with a bottom-line cost estimate provided as a total dollar amount with a +/-7.5% range (rounded to the full $1,000). Standard, approved language is used in all ballpark memos to correctly characterize the “non-binding” nature of the estimate. Budget detail is usually not included with the ballpark memo.  Ballpark budgets must be approved by the SRO Director (or designate) before being sent to the client.  Since a ballpark does not extend an offer to complete the work for the price estimated, it does not need ISR, SRC, or Office of Research and Sponsored Projects (ORSP) approval.

Example of Ballpark Transmittal Memo

2.2.11 Formal budgets

Formal budgets provide an offer to complete the work for the price estimated.  They maybe included in proposals and are our best estimate of true SRO costs for the work scope defined in the memo to the researcher. Formal budget packages may include a transmittal memo describing the work scope, a spreadsheet showing hours and dollars budgeted for major categories, and budget justification text explaining each line item in the budget.  Both the transmittal memo and the budget justification document contain standard, approved language to correctly characterize the formal nature of the cost estimate and the appropriate descriptions of the budget categories.  The package may also include other material such as text for the technical proposal including a description of ISR facilities and services, detailed information about the survey design, or biosketch information for key SRO staff. Formal budget packages must be approved by the SRO Director (or designate), SRC, ISR, and ORSP representatives before being submitted to the funding agency.

Formal Transmittal Memo
Budget Justification
Example of “Values” Budget Spreadsheet
ISR Facilities and Capabilities

The approval process for formal proposals varies by the affiliation of the principal investigator.

Activities for this task could include, but are not limited to:

• ISR principal investigators:  Proposals submitted to investigators within ISR require approval from the SRO Director (or designate) only.  Approval from SRC, ISR and ORSP will be obtained by the principal investigator.
• University of Michigan principal investigators:  Proposals submitted to investigators outside ISR but still within the University of Michigan require approval from the SRO Director (or designate), as well as SRC and ISR approval.  The University of Michigan investigator will obtain ORSP approval prior to submitting the proposal to the funding agency.
• External principal investigators:  Proposals submitted to investigators outside the University of Michigan require approval by the SRO Director (or designate), SRC, ISR, and ORSP.  The ORSP office (or with ORSP approval SRO) will send the official proposal to the investigator. Figure 2.2  provides a diagram of the proposal approval process.

Proposal Approval Form (PAF)

Figure 2.2 Proposal Approval Process

After funding has been awarded by the sponsor, the principal investigator notifies SRO.  The SRO Administrative Group assigns a senior project advisor and a Project Leader to the project.  Financial Services assigns a Financial Analyst, who works with the project lead on initiation activities (see Chapter 3).

Activities for this task could include, but are not limited to:

• ORSP receives the award notice and award documents, as well as contract or subcontract documents (as appropriate); and negotiates any changes that arenecessary.
• When the contract/subcontract is approved, ORSP issues a Project Award Notice (PAN) which includes the P/G (Project Grant) number and shortcode.

Example of Project Award Notice (PAN)

• The PAN is sent to the PI, and a copy is sent to the Proposal Development Group.  The Proposal Development Group forwards a copy to Financial Services and the Project Leader, and project initiation activities begin (see Chapter 3).

Figure 2.3 Financial Services Project Awarded Phase

If the work scope for a project changes, or if the assumptions upon which the initial budget was based are found to be incorrect, the budget is reevaluated and adjusted if necessary.  Activities for this task could include, but are not limited to:

• The Project Leader prepares a request for rebudget, which outlines the work scope change and/or the changes in the budgeting assumptions.
• The proposals coordinator or research process coordinator revises the project budget, and the Project Leader evaluates the new budget and negotiates changes as appropriate.  Final review and approval of the budget and associated memos/descriptions is done by the Proposal Development Group and Technical managers.
• The SPA, as the SRO Director’s designate, reviews and approves the new budget, and the Project Leader presents the revised budget to the PI, who secures additional funding or reduces the scope of work if necessary.
• After the PI has approved the new budget, the Financial Analyst submits a revised 7471 and updates the budget and projections in the Cost Reporting System.