How to Write a Request for Proposal or RFP

How to Write a Request for Proposal or RFP How to Write a Request for Proposal or RFP A request for proposal, sometimes called an RFP or RFQ  (request for quotation), is a document a company issues  when it wants to buy a product and  it wants  to make its  specifications available to the public. This is usually  the case  when several companies will bid on the work and  the RFP invites  more competitive prices.  But, if you dont prepare the RFP  correctly, your effort  might  produce 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 homework:  Figure out what you  need, what you want, and what is possible before you begin writing your  RFP.  Dont issue an RFP for a machine that can produce 1,500 widgets an hour if youve  never sold more than 25 a month. Theres  no point in issuing an RFP for a high-powered car when a messenger can get through traffic just as fast on a bicycle.Distinguish between your needs and wants: If you want to purchase an application that can transmit pictures between headquarters and your  vans 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 it  might be nice to have those images in color, decide if that is really necessary.  If you really require a certain specific, use words  like will, shall, and must. This indicates that these are the requirements. Specifications that are merely  wants should be  identified by words like may, can, and optional. Decide what the winner will look like: The proposals you get  in response to your RFP will differ. Each responding company  will have different strengths and weaknesses. Some will focus on lowest cost. Others will focus on best quality. And others will offer  a complete feature set.  Decide up front what youre looking for- the lowest cost, the fastest delivery, or some combination of the two.Organize the document: Anything you write for business should be given a great deal of thought and  should be  organized. An outline is a good place to start. At a minimum, youll  need sections  for an introduction, requirements, selection criteria, timelines, and processes.  Many of these sections will have subsections.   Write the introduction: This is where youll  explain to potential bidders why youre  publishing 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 an  RFP for an image transmission system  might 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 have  to 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 transmission  secure (c) desired options, where you might list the color as a desirable option. Selection criteria:  Heres where you tell  bidders  how youll select the winning bid.  You can divulge as much or as little as you like. Its  a 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 team  choose  the 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 expected to  take. Be reasonable when you set your deadlines. Dont ask for proposals for complex systems then give  the bidders just a few days to respond. Allow more time to prepare a bid if your  RFP is large, if your desired purchase is  complicated, or if you require a very detailed response. This is also where you can  tell  bidders how long the evaluation process will take when theyll  be notified if  they were successful,  and how soon they mu st  deliver what theyve promised. Process: Use this section to  explain 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 all  requirements and  are 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 an  RFP 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 the  RFP theyre  responding to.Decide who will receive the RFP: You may already have identified  the suppliers from whom you  want 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 your  list of who receives your  RFP to only large companies or established vendors. You  might 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.