1. How do you determine the risk associated with any given statement of work?

Answer: Decision Logic assesses task risk against the following main elements:

• Our experience in solving the given type of problem
• The level of organic modelling capability we have available to solve the problem
• The availability and accuracy of system data (that is client provided data describing the system to be modelled)
• The financial magnitude of the problem being examined and the importance of our part in contributing to the organisational outcome
• The required time period in which to solve the problem

Combinations of the above yield a risk rating for each task that is agreed with the client, and that is then used as a basis to negotiate the most appropriate contracting mechanism and the rates we will charge.

2. What sort of contracting mechanisms do you employ?

Answer:  Whatever best suits both parties.  We offer a range of contracting types which change as a function of risk, job length, value and client need.  In overview we may adopt any of the following:

• Time and Materials - Amount Not to Exceed.  Adopted when the client wants to get a solid start on an internal model, or wants a proof of concept to de-risk a larger modelling approach, among other situations.  Depending on the nature of the task, we agree an hourly rate, and work at best effort until we reach the pre-agreed "not to exceed" amount.  This caps your risk, and gets you going very quickly without too much problem definition or set-up time.
• Fixed Price, Single Phase.  Adopted for low risk tasks with clearly defined deliverables over a short to medium term duration (1 to 4 months) where some capability already exists but requires low risk modifications, verification, user interface work and supporting documentation and training materials.
• Fixed Price, Multiple Phase.  Adopted for more risky tasks with less clearly defined / evolving deliverables over a medium to long term duration (3 to 12 +months). Each phase builds on the previous one, but the client can terminate at the end of any phase based on progress. 
• Retainer.  Adopted when a client wants a minimum guaranteed amount of services "on call" over a predefined duration.  A premium is paid to ensure we provide an expert within the agreed lead time whenever the client requires our capabilities. 

3. How much do you cost?

Answer: Of course that depends on the situation, and specific rates are proprietary and commercially sensitive.  Having said that, we are a low overhead organisation, and for the niche and rare skills and capabilities that we provide, we are much cheaper than you might think.  Our rates vary with the nature and duration of the task and the risk involved.  As a general rule, the longer the contractual duration, the lower the rate.  Likewise for re-engagement.  If we deliver a successful solution to a client, and that client then wants to re-engage for a new or follow up task, the rates will be discounted.  The more you use us, the cheaper we get.  Of course, overseas countries also capitalise on the exchange rate with Australia.

4. Do you charge for detailed quotes?

Answer: Not usually, but it depends on how long we think it will take to properly scope the technical and human aspects of a problem.  Sometimes we are happy to spend up to several days onsite with a prospective client free of charge to gain a detailed understanding of their problem. After an NDA is signed, we produce a problem specification document which we may hand over at the end of the period if agreed prior.  If the client then wishes to proceed with our services, we will charge them for the problem definition period upon successful delivery of services.  Depending on the circumstances though, we may not charge a client if they don't wish to proceed, but on those grounds we will retain the problem specification documentation under NDA or destroy it.