Request for proposal process and implementation

RFP Process

L. Jones

The Request for Proposal (RFP) Process

Although many companies and organizations view themselves as reasonably self-sufficient, the process of seeking non-internal assistance (in whatever form that might take) is not the exclusive realm of outside-vendor driven industries. Indeed, many companies often find themselves in the position of needing outside vendors or contractors to supply specialized services or expertise, or even to provide some product or service that are not obtainable in house due to legal and/or liability constraints. Whenever a company seeks outside expertise, however, it is essential to weigh the abilities of prospective candidates (whether individual or organization). Thus, when beginning the search for outside vendors or contractors, it is exceedingly important to understand how to craft an effective "Request for Proposal," or RFP.

Common Problems

One of the most common problems businesses and other entities have when obtaining outside help of any kind is a certain lack of foresight in drafting their RFPs. This is often due to a lack of time spent at the planning stage (Morris, 2005), or perhaps more commonly, a lack of breadth in its content at the time of writing. This is especially important when considering the accuracy of bids returned based on the description of the project. Additionally, when one is faced with multiple proposals, it is often difficult to "compare and contrast" the results due to a lack of uniformity in the RFPs used within the company for each particular purpose. In order to avoid these possible problems, it is not only important to allow sufficient time for the effective planning and composition of the RFP based on thorough research of the "need to be filled," as well as the focus and organization required to produce a reasonably "standardized" and/or uniform RFP.

Model good RFP almost always includes important key components. The following is an example with explanations on a good "basic" RFP format.

Explanation of goals -- in order to insure the highest dependability in the bids returned in response to the RFPs delivered on any given project, it is essential to describe the project requirements, as well as the ultimate goals of the project in concise yet factually accurate and encompassing detail. Additionally, here the RFP drafter should always strive to include as many relevant details as possible to the vendor concerning special circumstances that may affect cost (Carton, 2001).

A brief background of one's company or organization -- in order to better allow vendors to assess their compatibility with the project at hand, the RFP writer should give a concise description of the company and/or organization.

An explanation of the project budget -- Although it is possible that the RFP writer/s may be unable to accurately forecast the budget for every given project, at the very least a ballpark budget will allow vendors to specifically tailor their proposals to the project. This means that they can describe exactly what services can be provided "in budget," and it also provides a means of "weeding out" those vendors who are unable to provide the service under the stated budget amount.

Expected time frame for the project -- in many cases, the time frame in which a vendor can provide a service is every bit as important as the bid price (sometimes more so). Here, it is important to indicate all of the important time specific information concerning the project, including due dates, time sensitive milestones, scheduled meetings, etc. It may also be a good place to indicate possible areas of flexibility (particularly useful when dealing with a high-demand vendor market.

Detailed explanation of the project -- a brief, yet detailed explanation of the key requirements of the project with an emphasis on the vendor's responsibilities. It may not be necessary to explain all of the aspects of a given project if the vendor will not be responsible for the entire project. However, it is important to anticipate and describe all of the aspects that will likely affect bid price as well as vendor capability/expertise and time.

Explanation of working relationship expectations -- Although it is impossible to anticipate all of the nuances possible in the vendor/company work relationship, it is a good idea to anticipate the major points of interaction, and set guidelines for them. This might include contact information, directory of employees "owning" the project, expectations concerning work-in-progress evaluation and accountability, etc.