In order to make a comparisons easy, you must separate the software costs from the hardware costs, even if you have to estimate the cost using other quotes. Avoid the use of irregular sized paper or pages. Photocopy them at a reduced size or cut them to size. It is recommended that you use MS Word and Excel to write your proposal. In most cases, PowerPoint is not appropriate for a written proposal, since this assignment isn't a projected presentation.
Any format is acceptable, but neatness and ease of understanding is critical.
If you choose to use a notebook or presentation folder, use one big enough for all the pages. If submitting a stapled document, make sure you have a cover page and use a staple big enough. The appearance of the proposal is a major part of this assignment, since your potential customer will be judging your competence and professionalism based on how good your proposal looks. There should be no hand-written drawings, diagrams, and pages except for notes on your backup quotations. If you chew up the corner of your project trying to get a staple through, you are going to lose points.