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V.
Response by CRO to a Request for a Proposal |
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As described above, sponsors typically spend considerable time and resources in identifying and selecting CROs as candidates to carry out a project. Similarly CROs, now working in a highly competitive marketplace, must make every effort to be placed on a sponsor's list of candidates. This marketing process often includes advertising in trade and medical publications, direct mail campaigns to pharmaceutical and biotechnology companies, participation in exhibitions and technical programs at professional meetings and conventions, and periodic face-to-face meetings with sponsor representatives. Although these activities are important to assure name recognition by potential clients and to introduce key personnel, expertise and general service capabilities, nothing is as convincing as referral by clients satisfied by a CRO's performance on a project. |
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After preparing the list of CRO candidates being considered for a project, the sponsor issues a request for a proposal and budget quotation (RFP) to the CROs selected. Because project plans, resource requirements, and budget estimates vary greatly depending upon actual specifications, the sponsor must be explicit and detailed in defining expectations and requirements. Many pharmaceutical and biotechnology companies, which rely heavily on outsourcing for product research and development, have prepared highly detailed lists of activities for each component of a project, including the distribution of responsibility between the sponsor and CRO. When such a list is not available to a pharmaceutical company, experienced CROs provide an example to the sponsor to help define the scope of services required. The sponsor must recognize that the proposals and budgets from the responding CROs can be compared objectively only if each CRO is given the same specifications. |
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Assuming that an explicit RFP has been issued, the CROs' responses will depend on a variety of factors, including |
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Who prepares the proposalIn a smaller CRO, senior management and technical experts, who are typically involved in both operating and sales functions, contribute directly to the proposal and budget estimate. Larger CROs, with a more robust infrastructure and differentiated responsibilities, utilize dedicated proposal and budget development experts who obtain technical input from operating departments depending on the availability of documented prior company experience in the prospective project. Many experienced, sophisticated CROs utilize proven budget algorithms to prepare cost estimates for well-defined projects. |
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