Module06Lesosn3.docx

Understanding the Elements of a Request for Proposal

A Request for Proposal (RFP) is a written, formal document often used to initiate the process of procurement or purchasing. RFPs usually indicate a procurement process having specific, technical requirements that need to be met. The procurement process is open to those potential suppliers who can meet (or exceed) requirements.

While most organizations have templates for their RFP process, there are several common categories within an RFP. The categories or sections include: Project Summary, Project Goals, Scope of Work and Deliverables, Timeline, Technical Requirements, Budget, Selection Criteria and Proposal Format. The RFP will also contain company information and details about the primary contact from the company who will be able to answer questions and collect the proposals.

Listed below are each of the main categories and a brief synopsis of what that category represents as well as the questions are addressed in the category.

Project Summary

· The author(s) of the RFP would include general information about the company requesting the RFP as well a brief overview of the project. For example, if there was a request for a quote on accounting services, the author may mention the history of accounting work for ABC Company. Some RFPs will include a separate section for company history. Depending on the level of detail for the proposal this section may be a couple of paragraphs or a couple of pages long.

Project Goals

· This area is dedicated to presenting project goals related to what will be proposed. An example would be the launching of a website or development of a formal set of presentations to be used by the board of directors. While this is also briefly covered in the summary, this is the section where applicable details are shared.

Scope of Work and Specific Deliverables

· Outlining the expectations is critical to receiving good responses to the RFP. Think in terms of how the end product should look or perform. The company may be working with an OEM food manufacturer to develop a barbeque sauce that is low in sodium and uses only clean ingredients, or may be purchasing HVAC equipment for new factories. This area is critically important with high-tech services or more expensive and intricate procurement processes.

Timeline

· This section is fairly straightforward. When will this project begin? When does it need to be completed by? Are there certain deliverables that need to be presented or completed early? All of these details should be outlined in this section.

Technical Requirements

· Beyond the scope of work and deliverables, it is important to share specific requirements. Is there a particular software that needs to be addressed? How about power or connectivity? Size, materials used and weight might be other details to list in this section.

Budget

· Procuring is another word for buying. When anyone buys something, it is important to know the costs. In order to get the most from a proposal, sharing information about budget or target price can yield better results. Information about relevant historical prices or financial constraints are ideally outlined in this section.

Selection Criteria

· This area would include requirements of organizations responding to the RFP. Some items that are included in this section are: Minority Owned Certified companies, prior experience, company size, financial stability, etc.

Proposal Format

· Will this proposal need to be printed, bound? Do copies need to be provided and if yes, how many? Is an electronic submission preferred? In which format? All of these questions should be addressed in this section to guide the respondents.

Summary

RFPs are wonderful tools any organization can develop and use. They help a procurement team stay organized, stay focused on the goals and obtain the best possible achievable outcomes. Take a moment to do an internet search for an “RFP template,” and look at several examples to become more familiar with the concept.