We found a match
Your institution may have rights to this item. Sign in to continue.
- Title
BIDDING FOR THE SAKE OF FOLLOW-ON CONTRACTS.
- Authors
Brooks, Douglas G.
- Abstract
Many firms face bidding situations in which follow-on contracts are likely, and the firm winning the initial contract is favored to win the follow-on awards. Managers are tempted to bid the initial contract low in anticipation of receiving the lucrative follow-on contract, but quantitative analysis of these situations can be difficult. A technique is presented herein where the expected present value of the margin of the follow-on contract is added to the present value of the margin of the initial contract to achieve an overall expected margin sufficient to meet the management's minimum target ROI levels.
- Subjects
CONTRACTS &; economics; BID price; RATE of return; REVENUE management; RATIO analysis; VALUATION of corporations; EXPECTED returns; CONTRACT negotiations; BUSINESS planning; MANAGEMENT; ECONOMICS
- Publication
Journal of Marketing, 1978, Vol 42, Issue 1, p35
- ISSN
0022-2429
- Publication type
Article
- DOI
10.2307/1250326