How to Write a Request for Proposal or RFP

How to Write a Request for Proposal or RFPHow to Write a Request for Proposal or RFPA request for proposal, sometimes called an RFP or RFQ(request for quotation), is a document a company issueswhen it wants to buy a product andit wantsto make itsspecifications available to the public. This is usuallythe casewhen several companies will bid on the work andthe RFP invitesmora competitive prices.But, if you dont prepare the RFPcorrectly, your effortmightproduce bids that are a waste of time, or worse, no bids at all. Heres how to go about creating an RFP to ensure the best results. Difficulty Average Time Required Several days The 12 Steps Do your homeworkFigure out what youneed, what you want, and what is possible before you begin writing yourRFP.Dont issue an RFP for a machine that can produce 1,500 widgets an hour if youvenever sold more than 25 a month. Theresno point in issuing an RFP for a high-powered car when a messenger can get through traffic just as fast on a bicycle.Disti nguish between your needs and wants If you want to purchase an application that can transmit pictures between headquarters and yourvans at the job site, you might specify the number of images you need per second, the maximum size of the images you need, and the necessary resolution.While itmight be nice to have those images in color, decide if that is really necessary.If you really require a certain specific, use wordslike will, shall, and must. This indicates that ansicht are the requirements. Specifications that are merelywants should beidentified by words like may, can, and optional. Decide what the winner will look like The proposals you getin response to your RFP will differ. Each responding companywill have different strengths and weaknesses. Some will focus on lowest cost. Others will focus on best quality. And others will offera complete feature set.Decide up front what youre looking for- the lowest cost, the fastest delivery, or some combination of the two.Organize the docu ment Anything you write for business should be given a great deal of thought andshould beorganized. An outline is a good place to start. At a minimum, youllneed sectionsfor an introduction, requirements, selection criteria, timelines, and processes.Many of these sections will have subsections. Write the introduction This is where youllexplain to potential bidders why yourepublishing the RFP and what you hope to achieve by doing so. The introduction may also include a summary of the key points culled from the other sections, including the due date. The introduction of anRFP for an image transmission systemmight read something like this XYZ Company requests proposals for a highly reliable, easy-to-use system capable of transmitting images from the main office to vans anywhere in the metropolitan area. Responsive bids must be received by Monday, March 5, 2007, at 8 a.m. PST. Explain requirements This section is one of the most important and it usually takes the most time. Youll haveto specify the size and clarity of the images to be transmitted and the necessary speed. Be specific, but dont tell bidders how you want the work to be accomplished unless thats essential.You might want to break this part up into subsections. For example (a) image size and quality (b) transmission, which could include both desired speed and any requirements that make the transmissionsecure (c) desired options, where you might list the color as a desirable option. Selection criteriaHeres where you tellbiddershow youll select the winning bid.You can divulge as much or as little as you like. Itsa good idea to include a sentence like, The winning bidder, if any, will be selected solely by the judgment of XYZ Company. You might want to create a spreadsheet that awards each bid a certain range of points in each category. Then, have a teamchoosethe best bid from the ones with the top three scores.Timelines This section tells companies how quickly they must act and how long the process is expe cted totake. Be reasonable when you set your deadlines. Dont ask for proposals for complex systems then givethe bidders just a few days to respond. Allow more time to prepare a bid if yourRFP is large, if your desired purchase iscomplicated, or if you require a very detailed response. This is also where you cantellbidders how long the evaluation process will take when theyllbe notified ifthey were successful,and how soon they mustdeliver what theyve promised. Process Use this section toexplain how the process will work- from sending out the RFP to awarding the contract and when the work will begin. This section might say,Bids are due on the date specified in Step 8 above. All bids will be reviewed to make sure they meet allrequirements andare responsive. All responsive bids will be scored in X categories (you can name the categories if you wish) and the top three bids will be evaluated by the proposal team to select the winning bidder and an alternate. Negotiations with the winning bidder are expected to result in a contract award within two weeks. Decide how to send out the RFP Most RFPs are mailed out, but they dont have to be.You can send anRFP by email, or you can post it on your companys website. Just be sure to specify the name (or bid number) that bidders should use to identify theRFP theyreresponding to.Decide who will receive the RFP You may already have identifiedthe suppliers from whom youwant to purchase. Your company may even have a list of acceptable vendors. If not, you can find possible vendors through your professional network, by searching online, or by asking trusted vendors of other materials for their recommendations. Dont limit yourlist of who receives yourRFP to only large companies or established vendors. Youmight find better ideas and even better pricing from smaller vendors who are often more eager in winning your business. Notify the winner Once you completed all the steps above, its time to take the leap and notify the winning RFP that its time to move forward with the project.