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Request For Proposal

An RFP is a request for proposal issued by an organization to solicit bids from vendors for products, solutions or services. The RFP process involves 3 steps - issuing the RFP, collecting proposals, and selecting a winner. An RFP template includes sections for defining needs, schedule, requirements, scope of work, selection criteria and more. The goal is to define a challenge and find the right vendor to meet that need based on factors beyond just price such as reliability, experience and quality. The RFP process consists of 9 steps including brainstorming needs, writing the meaningful RFP, inviting vendor responses, evaluating proposals, selecting a shortlist, negotiation, final selection, signing a contract and ongoing review.

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106 views4 pages

Request For Proposal

An RFP is a request for proposal issued by an organization to solicit bids from vendors for products, solutions or services. The RFP process involves 3 steps - issuing the RFP, collecting proposals, and selecting a winner. An RFP template includes sections for defining needs, schedule, requirements, scope of work, selection criteria and more. The goal is to define a challenge and find the right vendor to meet that need based on factors beyond just price such as reliability, experience and quality. The RFP process consists of 9 steps including brainstorming needs, writing the meaningful RFP, inviting vendor responses, evaluating proposals, selecting a shortlist, negotiation, final selection, signing a contract and ongoing review.

Uploaded by

revola28
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Request for proposal (RFP):

A document issued by a business or an organization to request vendor bids for products,


solutions and services.
The RFP process includes three steps:
1. Issuing the RFP
2. Collecting proposals
3. Selecting a winner.

Template of RFP:
1. Define the project and its needs
2. Title of the proposal
3. Description of the company
4. Project’s Name
5. Schedule of proposal
6. Project’s overview
7. Project’s requirements
8. Scope of work
9. Associated risk
10. Selection criteria
11. Submission requirements
12. Contact information
13. Timelines

The goal of the RFP process is to define a challenge and then find the right vendor to meet
that need. Finding the right vendor means focusing on more than just price. RFPs allow
buyers to create a complex side-by-side vendor comparison of important factors. For
instance, the RFP may ask about reliability, experience, quality, policies and security.
RFP process consists of nine simple steps:

1. Brainstorm your needs


First, the RFP team, led by the procurement manager, must come together to decide exactly
what they’re looking for. Indeed, stakeholders, end-users, IT, finance, and any other teams
who will be impacted by the procurement decision are involved in the initial requirements
gathering process.

Together, they should define the RFP, meaning the challenge they want to overcome or goal
they want to achieve, as well as what success will look like. In addition, they must help
create RFP questions, establish scope and prioritize selection criteria.

2. Create a meaningful RFP


Next, it’s time to write the RFP. If possible, it is helpful to start with an RFP template and
customize it. Don’t forget to follow best practices and include questions that speak to your
specific needs and situation. For example, these questions can be adapted to almost any
procurement project.

 Who are your competitors? Asking this question can help issuers determine a
vendor’s integrity. It lets issuers know whether the vendors are honest about who
their competitors are and why they lose to them. It can also help issuers determine if
there are other options they should explore.
 What is your implementation process like? When purchasing software,
including customer success questions is key. RFP issuers should determine how long
the onboarding process will take. In addition, explore available support and self-
service options.
 What kind of training do you offer? The more complex the solution, the more
important this question is. If you don’t understand how to use all the solution’s
features and functionality, you may miss out on key benefits. RFP issuers should
inquire about the scope of training vendors offer, as well as available formats.
 Can you provide references, reviews or case studies? Certainly, there’s no better way
to determine the effectiveness of a solution than by learning about the experiences
of those who already use it.

Asking the right questions gives your RFP meaning and ensures you’ll have the information
you need to make a confident decision.

3. Invite vendors to respond


Now that you have your RFP written, it’s time to gather vendor proposals. In most cases,
you’ll develop a list of vendors and ask them for responses directly, but some organizations
also use bid services that post their RFPs publicly. This option can increase your responses,
but it will likely lead to several irrelevant responses. Consequently, you’ll invest more time
in scoring.

4. Evaluate the proposals


Once you’ve gathered vendor responses, you’ll want to score their answers. We recommend
taking a weighted scoring approach to help prioritize your decision factors. Weighted
scoring establishes point values for sections and individual questions in the RFP based on
their importance. This allows you to objectively determine which vendor truly best fits your
needs.

5. Select your shortlist


Based on your initial proposal evaluation, you can create a vendor shortlist — a list of five or
so vendors who you will move on to the final stages of the RFP process. All the vendors in
your shortlist should be serious contenders that you can picture your organization
partnering with. Ask these RFP finalists clarifying questions or request an RFP
presentation to help you make your final decision..

6. Negotiate
This is the stage where you ensure your organization is getting the best deal possible. Is
there a vendor on your shortlist that would be well ahead of the rest of the pack if they just
came down on price? Let them know. Most vendors will be happy to negotiate a bit —
especially if they know how close you are to a purchasing decision. Remember, be as
transparent as possible with your expectations and let the vendor know what potentially
winning the RFP means for them.

7. Make your final selection


Now to the fun part: Making your actual selection. Make sure to inform the vendor you’ve
selected, as well as the vendors you didn’t. Remember to be respectful and consider
offering feedback. Just because you didn’t select a vendor today doesn’t mean they won’t
be a viable option for your organization in the future.

8. Sign the contract


It’s time to make it official. Be sure to have a lawyer review all contract language before you
sign anything. You want to make sure everything is set up according to your expectations.

9. Ongoing review
Finally, you’ll want to establish your ongoing vendor evaluation process. We recommend
using a supplier scorecard to ensure vendors meet your needs. This approach ensures
vendors deliver the return on investment (ROI) and results you want to achieve. Make sure
to let the vendor know about any areas where you feel they’re falling short so they have an
opportunity to correct and meet your expectations.

To better understand the process and RFP meaning, it’s important to know other common
terms you might encounter.

1. RFx – The term RFx is a stand-in abbreviation that refers collectively to any of the
common ‘request-for ____’ documents. For example, requests for information,
requests for quotation, requests for qualifications, requests for proposals and so on.
2. RFI – A request for information (RFI) is a document that solicits general information
about the solutions and/or services vendors provide. Organizations generally issue
an RFI prior to the RFP process.
3. RFQ – Request for qualifications, abbreviated as the acronym RFQ, is a procurement
tool often used in construction that focuses on experience and expertise.
4. RFQ – A request for quotation (RFQ) is a document that solicits pricing and payment
information. Organizations often use this type of request when they know what type
of solution they want and are only evaluating vendors based on price. Note: Some
industries, like architecture, engineering and constructions (AEC) define RFQ as a
Request of Qualifications. This is entirely different and pricing cannot be included.
5. BRD – A business requirements document (BRD) is a formal document that outlines
the goals and expectations an organization hopes to achieve by partnering with a
vendor to complete a specific project.
6. FRD – A functional requirements document (FRD) is a formal document that outlines
how an organization expects their vendor to help them achieve a strategic business
goal.

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