Data Mining Budget?

Hi!

I was wondering what are your experiences in preparing quotes for data mining projects. In the past I always worked on what was predefined as a standard by the department, but now that same department is asking us to justify their/our quote!

We don't have a chance to do ROI, since they don't really have an accurate R or I at hand. We are talking about marketing, mostly response campaigns.

Also there's some data processing and reporting, how would you quote that? Just on hours?

We don't use expensive software licenses, but how do you compare using a 30K license against having the knowledge and a system capable of working on RM? Do you think they should be considered equal?

Thanks for your insight!

Regards.