PPPs generally have a long lead-time prior to proposal submittal during which the private entity is not compensated for their work. Firms must have the resources available to carry out the initial proposal work without compensation, which may lead to smaller firms taking a backseat or not even dipping their toes in the pool. Occasionally, stipends or grants are available to help fund proposal development. (See Table 6.)
Table 6: Results of Informal Survey of PPP Submission Costs
| Range | Who Pays? | Reimbursed? |
Proposal | $200,000 to $5,000,000 | Private | Only if won |