Klondike Engineering

Klondike Engineering - Klondike Engineering BACKGROUND In...

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Klondike Engineering 1 BACKGROUND In June 2002, Klondike Engineering had grown to a company with $25 million in sales. The business base consisted of two contracts with the U.S. Department of Energy (DOE), one for $15 million and one for $8 million. The remaining $2 million consisted of a variety of smaller jobs for $15,000 to $50,000 each. The larger contract with DOE was a five-year contract for $15 million per year. The contract was awarded in 1997 and was up for renewal in 2002. DOE had made it clear that, although they were very pleased with the technical performance of Klondike, the follow-on contract must go through competitive bidding by law. Marketing intelligence indicated that DOE intended to spend $10 million per year for five years on the follow-on contract with a tentative award date of October 2002. PROPOSAL BID On June 21, 2002, the solicitation for proposal was received at Klondike. The technical requirements of the proposal request were not considered to be a problem for Klondike.
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