Afterreadingthecaseanditsexhibitsrank order the four opportunities (e.g., #1 equals best opportunity) then plan on which opportunities,if any, youaregoingto bidon. Develop a briefing.

Justify your #1 bid decision on the next chart taking into considerations the following factors HiTechBus Proprietary Competition Strategic market outlook Why HiTechBus?Discriminators? HiTechBus capable? Customer investmentperspective Resources Capture teamresources required Capital investmentsrequired for capture Business potential Long term sales Cash flow impacts Risks Maturity of customer'srequirement CustomerInterface/Relationship Win Strategy/Capture Planmaturity Competitive Discriminators Staffing Past Performance

Justify your #1 bid recommendation

**The Light Lift C-28 Avionics Upgrade**

Describe why should we bid or not bid.

Here is the section for The Light Lift C-28 Avionics Upgrade to assist with a response.

HITECHBUS's Business Strategy

Our business strategy is centered on successful execution in healthy core businesses - testing, avionics, and aircraft maintenance. Taken together, these core businesses have historically generated substantial earnings and cash flow that permit us to invest in new products and services. We focus on producing the products and providing the services the market demands and we price our products and services to provide a fair return for our shareholders while continuing to find new ways to improve efficiency and quality. HITECHBUS is committed to being the leader in defense aviation by delivering capability-driven solutions to our customers at reduced costs. Our strategy is to leverage our core businesses to capture key next-generation programs in the defense market while expanding our presence in the commercial markets, underscored by an intense focus on growth and productivity. Financially, our emphasis is on growing earnings and cash flow per share. Our strategy involves a flexible and balanced combination of organic growth, cost reductions, and select business acquisitions and divestitures, enabling us to grow the company and also return cash to our shareholders in a balanced and disciplined manner. Our strategy includes the elements discussed below. Maintain an Entrepreneurial, Accountable and Results-Driven Culture. A key part of HITECHBUS's strategy is our entrepreneurial, accountable, and results-driven culture that is focused on meeting our customers' needs and on achieving HITECHBUS's strategic goals and growth objectives. HITECHBUS's culture is made up of diverse people providing creative solutions and ideas in an environment that fosters teamwork and collaboration across our business units. Operating with integrity and a commitment to the highest standards of ethical conduct is an important part of our strategy to build and maintain the trust of our customers, shareholders, employees, suppliers and communities where we live and work. Strengthen and Expand Our Market Positions. We intend to use our existing prime contractor and supplier positions and internal investments to increase our market share and grow our sales organically. We intend to expand our prime contractor roles in select business areas where we have domain expertise, including testing, avionics and aircraft modernization and maintenance. We expect to benefit from and expand our supplier positions to multiple bidders by leveraging our customer relationships and pursuing adjacent market opportunities. As an independent supplier of a broad range of products, subsystems and systems in several key business areas, our growth will partially be driven by expanding our share of existing programs and participating in new programs. Teaming arrangements with other prime contractors and platform original equipment manufacturers is one way we intend to pursue select new business opportunities. We plan to maintain our diversified and broad business mix with limited reliance on any single contract, follow-on or new business opportunity. While sales to the U.S. Government, especially the DoD, will remain an integral part of HITECHBUS's business, we also intend to increase our sales in the commercial and international markets. We expect to supplement our organic sales growth by acquiring, on a very select basis, businesses that add

new products, technologies, programs and contracts, or provide access to select DoD or non- DoD customers and provide attractive returns on investment.

ENMG 681 Bid-No-Bid Exercise October 2022

4 Collaborate to Increase Growth Opportunities. We intend to deepen the collaboration among our diversified business lines to develop new business opportunities, combine our leading technologies and deliver the right solutions to our customers quickly. We expect that our core strengths of agility, responsiveness and cost-effectiveness will allow us to continue to provide exceptional performance to our customers. Leverage Our Excellent Customer Relationships. We will maintain, strengthen, and expand our customer relationships by identifying opportunities to use our customer relationships and leverage the capabilities of our various businesses, including proprietary technologies, to expand the scope of our products to existing and new customers. We will also continue to align our products, services, internal investments in research and development and business development activities to proactively address customer priorities and requirements and invest in growth areas such as C3

ISR and sensor systems. Proactively Manage our Cost Structure and Optimize our Business Portfolio. We intend to continue to aggressively improve and reduce our direct contract costs and overhead costs, including general and administrative costs. Our effective management of labor, material, subcontractor and other direct costs is an important element of cost control and favorable contract performance. We believe that proactively re-sizing our businesses to their anticipated sales, combined with continuous cost improvement will enable us to increase our cost competitiveness, and to selectively invest in new product development, bids and proposals and other business development activities to increase our market share. Achieve Outstanding Program Performance. We believe outstanding performance on existing programs and contracts in terms of on-budget, on-schedule and satisfying and exceeding technical and other contractual performance requirements, is the foundation for expanding HITECHBUS's prime contractor and supplier positions and growing market share. We believe a prerequisite for growing and winning new business is to retain our existing business by successfully meeting the performance criteria included in our existing contracts. We will continue to focus on delivering superior contract performance with affordable prices to our customers in order to maintain our reputation as an agile and responsive contractor and to differentiate ourselves from our competitors. Attract and Retain Skilled Personnel. The success of our businesses is, to a large extent, dependent upon the knowledge and skills of our employees. We intend to continue to attract and retain employees who have management, contracting, engineering and technical skills and who have U.S. Government security clearances, particularly those with clearances of top-secret and above.

ENMG 681 Bid-No-Bid Exercise October 2022

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Exhibit 1 - The Light Lift C-28 Avionics Upgrade

Summary The C-28 avionics upgrades are in HITECHBUS's mainstream business area, the risk is low, and HITECHBUS has existing staff to develop a quality proposal. Also, HITECHBUShas a long history with the customer whoknowsandrespectstheirwork. Thereisaverystrongbasisforbiddingonthis effort. Therefore, HITECHBUS may consider this a priority pursuit. Overview

This is follow-ontoanupgrade accomplishedbyRhode IslandAvionics,Inc.aboutfive yearsago. TheC- 28isoneoftheoldercargoplanesinthefleet. ThepresentGovernmentrequirementisprojectedtobe

$1.56B for avionics upgrades on 120 airplanes ($13 million/plane 120 planes = $1.56B). The Government has been hesitant to discuss the requirements with industry. The Business Development (BD)personnelhaveprovidedaprojectionofthefinalrequirement.Accordingtotheirbestestimates, most of the avionics upgrades were already developed under other programs. The avionics would need someadjustingtofittheC-28configuration(cockpitandotherareas). Allplanesaretobetentatively upgraded by August 31, 2025. That will require an output of 30 planes/year - a very aggressive Government schedule. Strategic Analysis This effort fits in HITECHBUS's avionics business strategy and is in line with its business goals. Avionics upgrades have always been part of HITECHBUS's bread and butter, and the firm was originally founded on this type ofwork. Financial Considerations A Fixed Price contract is contemplated where payments would not be received until delivery. For cash flow purposes, customary progress payments should be pursued or payments would be delayed until delivery of each vehicle. It will take about five months to upgrade a vehicle. In order to maintain schedule, approximately 13 planes will be consistently in upgrade status at any given time for the life of thecontract.Basedonthis,progresspaymentsorperformance-basedpaymentsareanecessityto alleviatecashflowissues. ProjectedB&Pcostsforthisopportunityare$3million(includingcapture management, business development, proposal preparation costs, minimal investment in Independent Research & Development (IR&D) funds, and associated travel costs). Customer Considerations HITECHBUShas a long history with theGovernment'sAeronauticalCenter. We have been a prime contractor and subcontractor on many its programs for over 20 years.

ENMG 681 Bid-No-Bid Exercise October 2022

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Competition Issues Rhode Island Avionics (present avionics contractor) - strong competitor, but has faltered on parts of the existing contract (their past performance data may hurt them). Flight Systems Incorporated - strong competitor in many systems, but this area is not their strong suite. Mostavionicseffortaccomplishedwasduetoalargercontractwheretheavionicswasa portionoftheoveralleffort. Inthosecases,theyusuallysubcontractfortheavionicsandourfirm (HITECHBUS) has often been their subcontractor for the avionics portions. Opportunity to Win the Program Goodopportunitytowinthisprogram. Wehaveexistingavionicsthatcanbeused,butitwouldneedto beadjustedforthisplatform. ThecustomerknowsandrespectsHITECHBUS.Pgo=80%,Pwin= 50%, $1.56B X 80% X 50% = $624M Technical and Management Baselines The technical baseline is firm, but theGovernment has resisted releasing the baseline. The solicitation is expectedtobereleasedwithinthenext45days.TheGovernmentisconsideringconductingasecond IndustryDay,butthedatehasnotbeenconfirmed. Therefore,weareutilizingourbestinsightintothe technical requirements. Our business development contacts have provided a final requirement projection. According to our best estimates, most of the avionics upgrades can be fulfilled using previouslydevelopedavionics,butitwillhavetobeadjustedtointegrateittotheC-28configuration. Cost Estimating and Pricing Issues Competitive acquisition using best value trade-off is expected. Although cost is only one of the evaluationfactors,weexpect costtobethemostsignificant. AlthoughtheGovernmentwouldbe willingtopayahigherpriceprovidingtheyarereceivingvalue,theadditionalvaluemustbeclearly significant. Cost is expected to be more important that technical, management, and past performance combined. Since this is a competitive acquisition, certifiable cost and pricing data will not be required. Risk This is a lowerrisk avionics requirement, as most of these avionics technologies already exist and are proven. However,theywillneedtobeadjustedtoworkwiththeC-28configuration. Sufficientroom exists for existing electronics hardware. Minimal hardware development is necessary. Proposal Issues Existing staff is capable of developing a quality proposal. Since this is a low-risk effort where we can use existing avionics, we will not need to provide our best avionics experts.

Does anyone know the break down from the section I'm working on? What references are you asking about