November 19, 2013 Preparing a Successful RFP to get Desired Results.

November 19, 2013

Preparing a Successful RFP to get Desired Results

RFP – RFQ – RFI WHAT DO THE ACRONYMS MEAN??

RFQ – Request for Quote:Commonly used when you know what you want but need information on how vendors would meet your requirements

RFP – Request for Proposal: Is used when you have a problem but don’t know how you want to solve it and how much you would charge for implementing your solution

RFI – Request for Information: Used when you think you know what you want but need more information from the vendors. It is usually followed by and RFQ or RFP

RFQ – Request for Qualifications: Used to gather vendor information from multiple companies to generate a pool of prospects. Is generally used to short list candidates for the RFP

RFP – A Request for Proposal

A solicitation document that an organization posts to elicit bids from potential vendors in order to procure a product or service through the responding business proposals.

The RFP process is meant to bring structure and transparency to the procurement decision, while reducing risk through open requirements and discussion.

• When the proposed commitment exceeds a certain dollar amount

• When competitive bidding is mandatory (usually a governmental agency)

WHEN TO ISSUE A RFP/RFQ

WHY: Why your organization needs to buy a new solution.

WHO: A brief description of your organization.WHAT: What is the nature of your

project/needs/expected outcomes?HOW: What information and documents

do you expect to receive from the providers?WHEN: When to submit questions/proposal? When will decisions be made.

KEY SECTIONS OF A RFP

Describes the general scope, nature, specifications, and purpose of goods, products, and services to be acquired in a manner that will enable providers to decide to respond to your request.

WHY: Statement of Purpose

Present a brief overview of your organization and its operations in a company profile section. Include pertinent information that will assist the potential bidder with understanding more background on your organization and the reason for the RFP.

WHO: Background Information

Specify the different project phases broken down into tasks.

Provide details on objectives, timeline, provisions and obligations.

Include specific measurement of outcomes and acceptance criteria.

WHAT: Scope of Work

SPECIFY:• Outcome targets• Minimal performance standards expected• Methods for monitoring performance• Process for implementing corrective action

WHAT: Outcome and Performance Standards

Provide a list of all products, reports and plans that will be delivered to your organization.Request a list of who is on the team – include resumes if applicableInclude a proposed delivery schedule.

WHAT: Deliverables

SPECIFY• Length of contract• Start/End date• Payment schedule/amount• Renewal options (if applicable)

HOW: Term of Contract

SPECIFY• Compliance with laws, regulations, insurance and

indemnity• Subcontracting – are there inclusion goals?

HOW: Contractual Terms and Conditions

A consistent structure in terms of content, information, and document types simplifies things for the people evaluating the proposals.Request a particular structure for the proposal and provide an exhaustive list of documents you want to receive in order to make an informed decision.

HOW: Requirements for Proposal Preparation

Outline the general procedures, criteria, and relative priorities used to evaluate and rank proposals in order to make the final selection decision.

HOW: Evaluations and Award Process

Selection Criteria – ExampleBidders will be rated from 1-5 (1 = Poor and 5= Superior) on the following criteria:1. Responsiveness to the RFP2. Quality of response3. Company’s background and experience4. References5. Extent of MWSBE participation6. Controlling costs and meeting budgets7. Fee schedule and other costs

• Be specific – state how to respond• Provide checklist of forms to be completed and

information to be included

HOW: Evaluations and Award Process

Provide a timeline for the steps leading to the final decision. Dates and deadlines for:

• Submitting a letter of intent• Sending questions and receipt of answers to

these questions• Pre-proposal conference (if necessary)• Submission of proposal

WHEN: Process Schedule

Include contact information for person responsible for receipt of questions and information on the RFP

Remember Clear Contact Info

• KNOW YOUR AUDIENCE: Prepare documents from the perspective of the supplier.

• ELIMINATE UNKNOWNS to reduce the number of inquiries and potential legal challenges.

This also helps suppliers deliver accurate pricing and cost associated with delivering the request to your company.

Key Takeaways:

Key Takeaways:

Both RFPs and RFQs are non-binding. You are not, in any way, obligated to hire the services of the other party to which you sent your RFP/RFQ.

• Well organized and complete• Every point is addressed

• Deliverables well-defined• Brief and concise

• Evaluation process and criteria are clear

What Makes a Good RFP?

RFP Response – Red Flags

• Disclaimers

• Ignoring the Terms and Conditions

• Death by Boilerplate

• Ignoring Instructions:

“Forget your format - I’ll use mine”

• Answering questions with “To be provided upon request”

• Not addressing the selection criteria

• Making assumptions rather than asking questions

• Submitting the proposal late

• Using the wrong customer name

RFP Response – Red Flags

Deborah Robb

Director of Community Revitalization and Inclusion

Port of Greater Cincinnati Development [email protected]

513.621.3000www.cincinnatiport.org

QUESTIONS?