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If AstraSync does not accept either of the proposals, the client will open the project to a request for proposal (RFP) where different companies will
If AstraSync does not accept either of the proposals, the client will open the project to a request for proposal (RFP) where different companies will compete for the project (call this option c). The terms of the clients RFP include payments of the revenue bid amount to the winning bidder at the end of each month, plus a gain-share reward at the end of month 18. The client would base the gain-share on the savings it would generate from successfully implementing the AI/ML solution. The winner would receive a share according to the following table: Savings Share of Savings <4 million 0 4 up to 6 20% of excess above 8 400,000 plus 40%>8 million 1.2 million plus 60% of excess above 8 million AstraSyncs team estimates the client savings for the AI/ML implementation with a triangular distribution: low of $3.2M, high of $12.8M, and most likely $5.6M. The director is set on a potential bid for the RFP of $150,000/month, given the need to compete with other companies. Their chance of winning is estimated to be 40%
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