1 © Mahindra Satyam 2009 Version 1.0 Bid Management Process.

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© Mahindra Satyam 2009© Mahindra Satyam 2009

Version 1.0

Bid Management Process

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© Mahindra Satyam 2009

Bid Management ProcessPurposeThe intent is to outline the process for opportunity management in order to: Generate feasible proposals and quotations that meet the needs and requirements of all potential

customers Ensure bid preparation activity with optimal efficiency Win the business contract from the Customers

Scope Starts with Relationship Manager or Sales Manager receiving the RFI /RFP from the Customer or

Prospect Ends with the knowledge capture of the submitted proposal post win/loss and handling over to delivery Covers all the RFIs / RFPs /Tenders / Pre-Bid Qualification information received from a Lead / Prospect /

Customer irrespective of the domain or naming conventions such as government bids/tender, etc.,

Out of Scope:Proposals out of the scope from the Bid Management process are those where there is no change in prevailing contractual terms and conditions and the bids that are covered under the following categories: Repeat business in terms of work packages (PO/WO) Business arising due to Change Control in current proposals/contracts Extension of existing contracts Standard Contracting Assignments on T&M basis where existing person day-rates are not being changed Contracts between Mahindra Satyam and other parties who provide products or services, which are

covered separately by the Vendor Management process.

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Key Highlights

• Comprehensive process covering end-to-end management of bids

• Integration of all sub-processes (for ex: 30-60-90, Estimation) which were earlier managed

in silos

• Checklists for Bid Qualification, Bid review, Contract sign-off and Transition to Delivery are

introduced

• Authority matrix highlighting approval levels for various bid sizes

• Integrated Win room process touch points

• Bid Manager as a role is identified in the process

• Sign-off by Delivery Head is introduced

• Process elements for formal Transition to delivery is introduced

• Win/loss analysis and repository creation/Updation is introduced

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Bid Management Process – High Level

4

Bid Planning Bid Review

Proposal Defense &

Deal Finalization

Transition to Delivery

Contract Sign-off

5


Bid Management Process

YES

Submit Proposal

RFI / RFP with OPID and updated

/ Opportunity information in xSell

Proxima

Bid

Pla

nnin

g Bid Qualification

Bid-No Bid Criteria

Bid Go Ahead?

END

YES

NO

Bid Strategy and Planning

Pro

posa

l D

efen

se &

Dea

l F

inal

izat

ion

Proposal Defense

NO

Tra

nsiti

on to

D

eliv

ery

Bid Closure Review & Win-loss Analysis

KT and Handover to

DeliveryEND

Contract Review, Negotiations and Sign Off by Delivery, CoRCC, HR,

Commercials, Corporate Services, Finance, Legal & Corporate

Develop 1. Solution2. Delivery Plan3. Commercials4. Risks

Touch Points

•Estimation Process

•30-60-90 Planning Process

•Contract Management – Finance

•Contract Management – Legal

Touch Points

Repository Updation

Archive Contract

documents

Bid

Rev

iew

Con

trac

t S

igno

ff

Review & Approval by Delivery, CoRCC, HR,

Commercials, Corporate Services, Finance, Legal &

Corporate

Bid Approval

?

YES

Contract Approved

?

YES

NO

Bid Shortlisted

?

NO

Win Room to be involved for all deals >=$3M

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PHASE I - Bid Planning

6

PR

OC

ES

S RFI / RFP with OPID and updated

/ Opportunity information in xSell

Proxima

Define scope

Conduct Kick-off Meeting with all Stakeholders

Res

pons

ibili

tyIN

PU

TS

Sales / Relationship

Manager

Pre-Sales, Sales /

Relationship Manager

Bid Manager, Presales, Solutions,

Delivery (IBU &CDU)

RFP/ RFI/ RFQ/LOI / Any

other Opportunity Info

Executive Summary Template

Bid-No Bid Checklist

Primary Accountability

Understand Requirements

Identify all stakeholders

(to involve Win Room if

bid value >=3m US$ ?)

Bid Manager,Sales /Relationship, Presales, Solutions,

Delivery (IBU & CDU), Legal,

Finance, Win Room, CoRCC, HR, Commercials,

Corporate Services

Bid Manager,

Pre-Sales, Win

Room

Win Room to be involved for all deals >=$3M

Identify Bid

Manager

IBG/IBU Sales Head

A

7


7

PR

OC

ES

S Bid Strategy and Planning

(Key Deliverables,

Timelines)

Develop 1. Solution2. Delivery Plan3. Estimations 4. Pricing5. Procurement6. Risks7. Assumptions

Res

pons

ibili

tyIN

PU

TS

Bid Manager

Bid Manager, Bid Team, Pre-Sales,

Solution,*Delivery Head (IBU & CDU), Legal, Finance, CoRCC, HR, Corporate Services,

Quality, Sales / Relationship

Bid Manager, Presales,

Solutions, Bid Team

1.Proposal Checklist2.Proposal Schedule

1. Solution Architecture Brainstorming Worksheet2. Estimation Procedure, templates3. Risk Management Plan Template4. 30-60-90 Planning Process

Form Bid

Team


Customer Intelligence

A

Deviations identified during

Bid Review

B

Integrate Proposal


Manager

PHASE I - Bid Planning Contd.C

Bid Go Ahead?

END

NO

YES

8


8

PR

OC

ES

SR

espo

nsib

ility

INP

UT

S

Delivery Head / Rep

(IBU & CDU)

1.Integrated Proposal2.Bid Review Checklist3.Proposal Response Review Checklist4.Delivery Manager’s Validation Checklist5. Proposal Approval Checklist6. Deal Review Checklist (Win Room)7. Deal Review Process (Win Room)

Y

Delivery Review

* No Proposal will be finalized without the sign off from DeliveryPrimary Accountability

PHASE II – Bid Review

Other SSUs (CoRCC , HR, Commercials,

Corporate Services) Reviews

Finance Review

Legal Review

Corporate Review**

Approved Approved Approved Approved

CC

CB

DY Y Y

N N N N

CoRCC, HR, Commercial, Corporate Services

Head / Rep

Finance Head /

Rep

Legal Head /

Rep

IBG Head / IBD Head, COO / CEO / CFO

Submit Proposal

Sales / Relationship Manager

Exceptions / Deviations Approved?

App

rove

d

Rejected - to be Re-Worked

Rej

ecte

d

END

To be used for deals $3M & above

** All deviations identified by Finance & Legal to be approved by Corporate

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PHASE III - Proposal Defense & Deal Finalization

9

PR

OC

ES

S Proposal Defense

BAFO** Accepted

?

Res

pons

ibili

tyIN

PU

TS 1. Submitted Proposal

2. Guidelines for Due Diligence

N

YProposal Shortlisted?

N

1. Contract Management - Legal2. Contract Management - Finance

* During Negotiations, compromise to be made on commercials and not on effort beyond what delivery agrees Primary

Accountability

Contract Negotiation

Bid Manager, Bid Team, Pre-Sales,

Solution,*Delivery Head (IBU & CUD), Legal, Finance, CoRCC, HR, Corporate Services, Quality,


D E

G

Customer

YBid Won

Negotiation Possible?

Y

N

F

** Best And Final Offer

Deviations identified during Contract Review, for re-Negotiations

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10

PR

OC

ES

SR

espo

nsib

ility

INP

UT

S

Delivery Head / Rep

(IBU & CDU)

1.Contract from Customer2.Contract Sign-off Checklist

Y

Delivery Review

Note: Sign off from Delivery is mandatory


PHASE IV – Contract Signoff

Other SSUs (CoRCC , HR, Commercials,

Corporate Services) Reviews

Finance Review

Legal Review

Corporate Review**

Sign Off Sign Off Sign Off Sign Off

F F

E

Y Y Y

N N N N

Finance Head /

Rep

Legal Head /

Rep

G

F

Exceptions / Deviations Approved?

App

rove

d

Rejected to be Re-NegotiatedWith Customer

Rej

ect

ed

** All deviations identified by Legal to be approved by Corporate

IBG Head / IBD Head, COO / CEO / CFO

CoRCC, HR, Commercial, Corporate Services

Head / Rep

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PHASE V - Transition to Delivery

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PR

OC

ES

S Bid Closure Review/ Win-loss Analysis

Handover all documents / Knowledge Transition to

Delivery

Res

pons

ibili

tyIN

PU

TS

Bid Manager, Sales, Relationship,

Solutions, Delivery (IBU & CDU), Legal, Finance, Bid Team

Bid Manager, PreSales, Solutions

Bid Manager, Delivery Head /

Rep (IBU & CDU)

1. Customer Feedback Form

2. Deal Win-Loss Analysis Template

Update Repository in

PreSales Portal

Archive copy of Contract

END

Legal, Finance Rep

1. Extract Learning Report2. Final Proposal


Sign off from Delivery

Presales, Bid Manager

GBid Won

Transition to Delivery Checklist

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Roles & Responsibilities

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IBG/IBU Heads•Ensure pipeline data compliance and accuracy of data on xSell Proxima

•Identify the Bid Manager

•Identify the right Deal Owner for Win Room Deals and communicating to Win Room

•Participate in deal reviews: Blue Team Reviews, Red Team Reviews & LOS Reviews

•Validate of all information on Deal Wins and Losses: IBG Heads will be copied on all Win Room-Deal

Team communication

•Act as the First point of resolution for deal teams

•Deal Team staffing

•Deal related escalations and support requirements

•For Win Room support, be in loop for all support requirements

•Help in Bid/No-Bid decision, where required

•Final Bid Sign-off based on clearance from Solution, Delivery, Legal and Finance .

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Sales / Relationship Team•Qualify opportunity, update opportunity info in xSell Proxima and provide OPID info

•Participate in bid qualification/chances of winning and identify risks

•Participate in Bid/ No-Bid decision

•Receive and dispatch customer documentations e.g. RFP, RFQ, RFI, LOI etc.

•Inform customer drivers, preferences and background to the bid team

•Provide information about likely competition and their strengths/weaknesses

•Liaison with the customer for seeking clarifications queries

•Inform the bid team of happenings at the customer end and competition activities

•Prepare the Executive Summary and get the same reviewed

•Bid submission and related logistics

•Commercial Interaction with third-party suppliers

•Provide support during Proposal Defense.

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Roles & ResponsibilitiesBid Manager

•Carries end to end responsibility from the receipt of the proposal to the closure of the bid

•Proposal Planning & Tracking

•Responsible for Bid /No-Bid Decision

•Provide Response Strategy

•Obtain necessary approvals required for the bid

•Overall Co-ordination for strategic decisions & directions

•Participate in proposal defense

•Participate in contract review

•Ensure knowledge capture and updation of repository

•Ensure transition to delivery with sign-off in case of Win

•Responsible for production of the bid, integrating technical and other sections of the document

•Responsible for the final version of the proposal

•Agree and Track SLAs with all Stakeholders participating in the Bid

Bid Team•Provide support in proposal planning, tracking, and identification of risks

•Provide support in preparing & review effort estimates

•Review proposal for alignment with the acceptance criteria

Quality•Estimation Approach & Review

•Provide description of various process and company wide quality metrics

•Review bid process periodically

•Provide standard updated documentation on Quality management practices

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Roles & ResponsibilitiesDelivery Head / Delivery Team (IBU / CDU)

•Help in Bid/No-Bid decision based on experience with the customer and delivery capabilities

•Assign Proposal manager and delivery support staff

•Proposal / Executive summary review

•Provide delivery experience collateral relevant to the bid

•Prepare and review effort estimates

•Technical Interaction with third-party suppliers

•Prepare project team build-up plan

•Bid response Sign-off during bid review and contract sign-off


Solution Team•Help in Bid/No-Bid decision based on technical capability and availability of skilled resources

•Provide technical solution and technology consultancy

•Liaison with third party product or technical services suppliers

•Provide product or technology comparisons and recommendations

•Prepare technology specific description in the proposal

•Identify and engage with external consultants or experts to assist in the bid preparation

•Prepare and review technical effort estimates

•Cost/ benefit analysis of alternate solutions thereby adding value to customer


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Roles & ResponsibilitiesFinance

•Help in Bid/No-Bid decision depending on commercial risks and profits.

•Build proposal costing and commercial models

•Create commercial scenarios for pricing decisions (ex: taxes, insurance, shift-allowances, warranty, etc.,)

•Calculate proposal pricing and margin/ sensitivity analysis

•Calculate cash flow against milestones and credit period.

•Undertake customer credit check for new customers

•Highlight tough and risky legal and commercial terms with revenue impact and obtain corporate approvals, if any.

•Signoff on financials of the bid response during bid review and contract signoff

Legal•Conduct due diligence of legal terms and conditions

•Negotiate contract terms with customer-end legal counterparts

• Draft NDA, MoUs, MSAs, Subcontracting Agreements, Alliance Agreements, Master Consulting Agreements, Teaming Agreements and IP related agreements etc.

•Highlight tough and risky legal and commercial terms to Corporate and the respective Stakeholders

•Obtain corporate approval on all identified deviations before Sign-off

•Ensure language in proposal ties in with Terms & Conditions

•Signoff on legal aspects of the bid response during bid review and contract signoff

Win Room:•Support to all Large Deals

•Management of Bid Information

•Facilitation and institutionalization of Deal Reviews

•Support and guidance through deal Mentors

•Support though high level Corporate intervention

•Win / Loss Analysis

•MSAT Pipeline management and Corporate reporting

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CoRCC•Ascertain availability of required project resources and assist in formulating resource build plan for the bid

•Develop Resource strategy for complex or large bids

•Provide CVs for the proposals

•Resource through contracting agencies and agree on contractor rates

•Maintain/ Provide up-to-date skill-wise data for inclusion in Bids

HR•Describe various HR practices for inclusion in bids where specifically asked

•Develop HR strategy for bids where transfer of customer people in scope

•Assist PSD in recruiting skills to meet the resource build plan

•Provide resource numbers data, attrition rates and other demographics

•Ensure VISA ready / immigration clearance associate available as per the requirement

•Insurance coverage to be taken care of by HR

•Engage local partner for recruitment in demographics as required and obtain the necessary approvals

Commercial•Vendor/sub-contractor selection & management

•Support in securing quotes for procurement and help in price negotiations

•Provide guidance on Procurement Policy

•Create commercial scenarios for pricing decisions

•Sign-off on vendor/sub-contractor terms & conditions

Corporate Services•Support in necessary logistic arrangements•Provide cost inputs for workstation availability, setup etc. required for project execution


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Annexures

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Templates / Checklists / Guidelines

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1. Bid-No Bid Checklist

2. Executive Summary Template

3. Proposal Preparation Checklist

4. Proposal Schedule

5. Solution Brainstorming Worksheet

6. Risk Management Plan

7. Bid Review Checklist

8. Contract Sign-off Checklist

9. Estimation Review Checklist

10.Finance Effort Estimation Sheet

11. Deal Win-Loss Analysis Template

12. * Empowerment Matrix

13.Customer Feedback Form

14.Extract Learning Report

15.Deal Review Template (Win Room)

16.Deal Review Policy (Win Room)

17.Transition to Delivery Checklist

18. ** Standard Rate Card Method

*Esupport >> Collaboration >> SSU >> Finance >> Pricing Portal >> Process & Empowerment

**Esupport >> Collaboration >> SSU >> Finance >> Pricing Portal >> Pricing Methods (write to finance for access to rate cards)

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Reference Processes:

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Process Path in Qualify

Contract Management - Finance Qualify >> Support Processes >> Finance >> Contract Management

Contract Management -Legal Qualify >> Support Processes >> Legal >> Contact Management

Estimation Process Qualify >> Generic >> Project Estimation

30-60-90 Planning Process Qualify >> Support Processes >> CORCC >> Resource Planning >> Demand Planning

Contract Review Procedure Quality>>Customer Relationships>>Contract Review

Win Room Process Available with Corporate Win Room team

Pricing Portal (Empowerment Matrix, Std Rate Card Method)

Esupport >> Collaboration >> SSU >> Finance >> Pricing Portal

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mahindrasatyam.net

Safe Harbor

This document contains forward-looking statements within the meaning of section 27A of Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements contained herein are subject to certain risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements. Satyam undertakes no duty to update any forward-looking statements. For a discussion of the risks associated with our business, please see the discussions under the heading “Risk Factors” in our report on Form 6-K concerning the quarter ended September 30, 2008, furnished to the Securities and Exchange Commission on 07 November, 2008, and the other reports filed with the Securities and Exchange Commission from time to time. These filings are available at http://www.sec.gov

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1 © Mahindra Satyam 2009 Version 1.0 Bid Management Process.

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