IT Outsourcing Roadmap Index

The RFP document is one of the most important, if not THE most important, document in the vendor selection process. In short the RFP defines the work to be done and the additional conditions to be met in order to win a contract.

The response to the RFP is the Proposal. So far the documents vendors submitted, were not contractually binding. However the Proposal is! Once a Proposal is selected as a solution to a specific problem the proposed solution as well as the terms and conditions are usually contractually binding. They will form the base of the Contract.

A few tips for vendors submitting a Proposal;

Every RFP is different. It is not a cut-and-paste job to prepare a proposal.

Be the best in the listed evaluation factors

You must have either:

Best cost/price while meeting RFP requirements

Best total package with a reasonable price

The Proposal must show you meet ALL listed requirements AND it represents the “best value” against the RFP's priorities. It also must show that you truly understand the problem and task at hand.

It's in your interest to submit a proposal that's competitive, yet one with which you can live

If you're unsure of a requirement, send in a question

As soon as you submit proposal, look for areas of improvement

Prepare written answers to questions

Design an RFP Compliance Matrix;

List every requirement of the Statement Of Work (SOW) and specifications

Do you meet, exceed, or fail to meet each one?

- If you don't meet, find a way to comply - or do not submit a proposal

- If you exceed, determine if cost impact of exceeding is worth it

In the proposal always include a section called "Understanding of the assignment". In this section write down how you understand the problem and the work to be done.

Largely an RFP consists of the following sections:

1. Administrative section The administrative section contains all of the administrative requirements and information with which a supplier must comply in order to submit an acceptable proposal.

a. Where and when to submit the proposal

b. Relevant dates for the procurement

Deadline for questions

Proposals due date and time

Evaluation complete date

Contract negotiations date

c. Requirements for preparing the proposal and the format of the proposal. This also include the list of required documents.

d. How proposals will be evaluated. Describe here the process and evaluation criteria

2. Background and overview It provides the suppliers with an overview of your company and a statement of the problem that you hope to resolve with the RFP as well as the overall project goals and objectives. The statement of the problem must be sufficient enough for suppliers to understand both the business issues that are driving the RFP and the technical issues that may have precipitated the problem.

3. Statement Of Work (SOW)

a. Technical Requirements

Critical success factors. How success is measured.

Current and proposed functional specifications

Performance specifications

Process and standards requirements

Hardware and software requirements

Communications requirements

b. Management Requirements

Staffing requirements, team composition and governance

Site preparation responsibilities

Schedule and planning. Milestones and project stages. Project management

Quality control requirements

Acceptance requirements

Maintenance and training requirements

Documentation requirements

4. Supplier qualification and references This section requires suppliers to provide information about their company, financial status and the customers who will serve as references for the RFP effort.

5. Supplier section This section allows suppliers to have a place in the RFP to provide information that they feel is necessary but was not requested. Suppliers can also discuss potential issues that are relevant to the RFP and to their proposal as well as issues they believe relevant to the project that have not been covered in the RFP.

6. Pricing This section provides a detailed format for suppliers to follow in developing their price proposals. Instructions should be in a clear format to ensure that proposals from different suppliers can be compared. You can also ask the vendors to submit their technical and financial proposal separately (not in one document). You can hold than two rounds of evaluation; first evaluate the technical proposals and this will not be biased by the financial proposal. When technical evaluation is done you can separately evaluate the financial proposals and link the two evaluations together.

7. Contracts and licenses In this section the text of the contracts and agreements are provided for the vendors. Not all RFPs contain this information. However it can be useful for the vendors to study the terms and conditions which can even determine if they prepare and submit a proposal or not. It will also help not to evaluate and select a vendor which later will not accept the contract. If provided, this section may contain;

a. Maintenance contract

b. License agreement

c. Warranty period

d. Performance bonds

e. Payment bonds

f. Nondisclosure agreement

g. Penalties and incentives

8. Appendices This section might contain detailed information that is too lengthy for the body of the RFP.