To produce accurate costings for the provision of health care services, which enable a profit to be made, but is competitive enough to win a tender for a six-year contract from a local authority.
The company were about to compete for a 6-year local authority care contract and wanted to ensure the service provision costings they had calculated were accurate. If successful, the contract would effectively double the size of the company.
There were no systems in place to produce standard costing information, so all costs had to be developed from other information which existed (both financial and non-financial). The deadline for completing the costing information and submitting the bid was two days.