It seems that every month another expert writes an article on how RFPs are bad for business, RFPs are a bad idea, top 10 lists of why you hate them, RFPs should be done away with because they increase risk and cost, and that RFPs will soon be extinct.

While I have a vested interest in RFPs in that I run the RFP Database, I do find them to be one of the most democratic, meritorious, and pragmatic approaches to procurement and purchasing. They're not a full proof solution, and often times they are run poorly, but that's exactly why we recommend that you be selective in the RFPs you respond to.

A very quick intro to Requests for Proposals

Requests for Proposals (RFP) are a document created by an organization detailing a product or service sought and distributed to suppliers as a way of receiving structured competitive bids. RFPs typically consist of a listing of requirements for their needs, a structure for resulting proposals from suppliers, contractual information, profile information about the supplier, and pricing documentation.


Complaints against RFPs and the process

Many of the complaints against RFPs, such as the ones listed below, are problematic and fairly common. Some are more legitimate reasons than others, but as I've said before you should always be selective in the RFPs you respond to.

1) Cover for a pre-selected vendor

The biggest fear of every vendor is that they're spending time pitching a project against a stacked deck, that the issuing organization has already selected the vendor they would like to use but that the RFP is simply being issued to satisfy a requirement and attach a veneer of transparency.

This is a valid fear, but by simply asking the issuing organization pointed questions about the situation you can assuage this fear or learn enough to walk away from the project. Ask them: "is there a current vendor in place and are they bidding on this project?" or "did a firm assist in the writing of the rfp and are they also bidding?" If they are you know what you're up against and can make up your own mind whether or not to bid on the project.

2) Only about lowest pricing

Perhaps it's because I work in a service industry, but I have never encountered this problem when it comes to RFPs. Yes, everyone has a budget, and yes, almost every RFP says "pricing will be considered when evaluating proposals", but does anyone expect it to NOT be a consideration?

In assisting organizations with their RFP process I have often heard "they're too cheap compared to everyone else, there has got to be something wrong there" as often if not more so than "they are simply too expensive". This has lead me to believe that yes, pricing is important, but it is much better to price your solution in the middle of the pack than it is to price it at the bottom of the barrel.

3) Boxed in to a pre-determined solution

Vendors often feel that RFPs automatically put them at a disadvantage because the project might be structured by stakeholders based on their knowledge of their requirements and a specific direction clearly indicated. They might have already made up their mind that their project requires a Microsoft solution, or that they require a LEED certified architect, or some other requirement, or any other reason either because that's what their familiar with or that's the direction they are required to take.

A vendor might have a solution to the project and feel that it is a better solution for any number of reasons, but because it is not the exact project specified by the RFP, that it is the fault of the RFP process for not enabling alternative approaches to be submitted. Asking the project manager a simple questions such as "will an alternative solution that fulfills the project goals be considered?" will quickly let you know where you stand with the project and whether or not you should spend time responding.

4) Cattle call, not worth participating

If you're a sled dog and not at the front the view never changes, right? Sure, and open call for proposals will get dozens of respondents, but how can you possible win if you never take the field? Every business is in business because they believe that they have a product or service that is worth buying and that, somehow, they have enough market differentiation to set themselves apart from the crowd and win projects. No company is the #1 choice for every project because someone somewhere has excelled at that specific type of project and can win through a combination of experience, pricing and proposed solution. Unlike the other complaints, this one requires that you perform a bit of introspection to determine how likely you will be successful in setting yourself apart from the rest of your competition.

5) Impersonal, no ability to connect

This is the complaint usually heard from smooth-talking salesmen who often are heard bragging that they can sell anything to anyone. They're disheartened by the RFP process because it emphasizes fulfillment of specific criteria, turns slick marketing pieces into a negative, and limits conversation, golf outings and free dinners. This is usually spun as "we need to meet with the client, work with them to determine their needs, get a feel for the project, etc.", but what they're really trying to angle for is an "in".

When proposing to projects that I felt needed further definition or to work with the client to better formulate their needs I have often pitched a 2-phase project with the first phase being the "lets figure out the project needs together". This phase had the discussions, discovery, requirements gathering, etc. that then was put into a detailed SOW which became Phase 2. And if the organization isn't interested in this two phase approach, you can always walk away from the project.

6) Impossible odds

This complaint often arises from a correlation/causation issue in that "since I've never won a RFP" that must mean that "RFPs must be impossible to win". As I've disputed in the past, this isn't a problem with the RFP process, but is in fact a process of companies not being selective enough in choosing which RFPs are worth them spending the time in responding. If you're specialized and can effectively demonstrate that you are the superior option there is no reason why you'd be facing long odds.


Advantages for issuing agency

RFPs are often a mandated requirement for municipal agencies, non-profits and corporations as a way to try to get unbiased and competitive bids for their needs. Organizations often don't receive enough proposals to truly receive a competitive bidding process because they don't publicize them enough, but even when they only receive three bids, RFPs still provide them with advantages. They can also be seen as time consuming since they require that the organization put time and thought into their needs and requirements, but this is time well spent.

1) apples to apples comparison

How can you evaluate which is the best solution for you and which provides you with the best pricing for the features you want without the ability to put the two solutions side by side? The RFP process enable an organization to define their needs/goals, get specific pricing for the solution that meets their needs, and evaluate multiple solutions on a level playing surface.

2) promote open and fair competition

One of the worst things an organization can do is be seen as playing favorites and putting a veneer of competition on their purchasing process when they're simply going to award the project to someone's nephew. When you have transparent competition with a documented set of requirements and evaluation process the process for getting funding and approval for your project because that much simpler. People won't think "oh, they awarded this project to this company because the CEO took the PM out for a round of golf and a fancy dinner"; instead you'll be able to point to the proposals, point to the evaluation criteria, and say "this project was the one best suited to our needs and won on its merits".

2) competitive pricing and alternative solutions

Squaring away funding for a project is obviously more difficult when you've had a less than competitive process and/or only received one proposal; it's easy to question whether you've received a fair price if you don't have other pricing to compare it against.

During the competitive bid process many vendors will often propose solutions that deviate from the specified, or at the minimum ask you questions that might challenge your defined project and assumptions. This feedback might cause you to re-evaluate your project, and in the process, create a stronger project due to the added definition and discussion.

4) potential wide-range of submissions

If you are open to simply receiving the best solution based upon its merit and within loose guidelines for your specific project you will be surprised at how wide-ranging the submissions will be. Every solution provider tries to distinguish themselves from their competition and believes that they offer something different and something better than everyone else. Let them and encourage them. You want to find the solution provider that will not just meet the needs and requirements of the project, you want to find the provider that will exceed them.

5) non-sales documentation of solution

Once your RFP gets the submitters to move past their stock sales and marketing pieces you're actually able to learn something, minus the overkill in buzzwords, about the provider and their solutions. While vendors like to say that they despise RFPs because they have to jump through so many hoops and spend so much time writing proposals, if it wasn't for the RFP and the fact that you're telling the vendors the information YOU need in the format YOU want, you'd likely receive hundreds upon hundreds of sales material that wouldn't tell you what you were getting nor what it would cost.


Advantages for responding companies

Small and mid-sized companies shouldn't listen to the advice of experts that tell you that the RFP process is broken or that you should never spend time responding to RFPs.

1) small biz equalizer against large biz

How often do you as a small or mid-sized business get the opportunity to participate in a competitive bid process that is judged on its merit? An open RFP gives you the opportunity to submit your proposal alongside the "Big Dogs" and show how a small, nimble company can in fact be the best solution.

2) connections matter less

Not all of us have connections to Fortune 100 companies or Executive Directors for large non-profits, so while we might not have the time and money to invest in extensive marketing endeavors, open call RFPs provide us with the immediate open door. The trick is, now that the door is open enough for us to stick our foot in (in the form of a proposal), we need to capitalize on it with an amazing pitch.

3) can reward innovation and expertise

While not all RFPs encourage you to venture outside the box of their firm needs and requirements, there is always the chance that the reader will realize the brilliance in your proposal and the fact that you went a step further than your competitors in proposing a solution that would save them time/money or yield increased returns.

4) plays to your strengths

In the process of being selective in the RFPs you respond to, an open-call RFP enables you to select projects that play to your strengths as well as your more profitable projects. You can actively seek out the projects that, in your mind, are big, easy, and juicy. It's not longer about the projects that find you, but that you can actively seek out these long-ball business opportunities.


So in short, go out, find some RFPs, but don't forget to be selective!

I believe strongly in Requests for Proposals (RFPs) as a tool for companies to find the best products and services at competitive prices, but also as an evaluation method for finding that elusive "best fit". However, too often the RFP process is run by people who have never experienced the process before, either from the issuer or vendor side, and essentially don't know what to say or what to ask. My goal in this article is give you the basics that you might need to create your own RFP and run a RFP process without too much frustration. As an example I'm going to use a small website redesign project (because that's what we do), but I hope you'll be able to extract the concepts you need for your own project.

Step 1: do your research and define what you are seeking

Don't jump into the RFP without doing your own internal homework. After receiving your RFP vendors will be beating down your door with dozens of questions; you're not going to want to be scrambling to find out answers which could then derail your timeline (more on that later). Defining your project as best you can will enable you to pass that information on to potential vendors, but also receive proposals that are tailored to your needs (pricing and project plans) by vendors who understand the project they are bidding on.

Example: You say you want a website redesign. Do you have existing brand material that will be used in the design or does that need to be created? Do you have the content for your new site written, or will that need to be created by the vendor or through a collaborative process? Do you envision this as a 5 page website or a large, 100+ page website? Who will be handling upkeep of the site, hosting, etc.? Do you need a Content Management System for maintaining the site and keeping it up to date or do you think it's going to stay fairly static? Are there any interactive pieces you need in the site or specific functionalities that will need to be implemented? Does the website need to interact with any database or 3rd party software?

This is by no means an exhaustive list of the types of questions that vendors will be asking you. The more you know about your project, the better the answers you'll be able to give to guide the vendors into great proposals. Yes, vendors will also be asking you questions you've never considered (which is a good thing), so be prepared to do additional definition work once you've received the questions from them.

Step 2: decide your distribution strategy and information publication

How will you be distributing your RFP, how will you be collecting information from potential vendors, and where will you be providing project updates?

My first recommendation is to create a project page or project site that will house your project overview, contact information, timeline, the RFP for download, and all other project documentation that you need to share with vendors. Include a link to this page in your RFP and direct people to it as a central repository for the project.

My second recommendation is to think long and hard on whom you'd like to be bidding on this project. For example, are you only going to entertain proposals from companies local to you, or does location not matter so much? Do you only want to receive proposals from a specific number of vendors that you invite to participate, or do you want to open the process up to receive qualified proposals from anywhere? Regardless of your decision, be upfront about this decision so that vendors aren't wasting their time by creating a proposal when you're not interested in them because of location.

Step 3: provide the information necessary to a vendor

This might seem a bit obvious, but provide the above information to potential vendors by organizing it in the RFP. Spend time giving them information about your organization, culture, marketing/branding efforts, any deadlines that you need to hit, a narrative of the project that you wish to implement... anything that will enable the best proposals to be written. If there are specifics make sure to list them out. If you don't mention them most vendors won't know to include them.

Step 4: create a reasonable timeline

There are a number of dates that you should include in your RFP timeline. For example, take the following schedule:

June 1, 2009 - Release and distribution of RFP
June 15, 2009 - Deadline for vendors to submit written questions and/or non-mandatory notice of intent
June 17, 2009 - Questions with written answers provided to all interested vendors
June 30, 2009, 9:00 am EST - deadline for submitting proposals
July 10, 2009 - Finalists notified
July 13, 2009 to July 17, 2009 - Finalist interviews
July 22, 2009 - Vendor selected
July 31, 2009 - Vendor signed

This is a fairly optimistic schedule, but it provides time in the various stages for work to be performed. I highly recommend varying this schedule based on your specific needs. For example, if you're running a complex software development project and are receiving technically complex questions, you're likely to need more than 2 days to answer all of the questions and provide them to vendors. You might also notice that I provide time both before and after the Q&A deadlines for vendors to both pose the the questions, but also take the provided information and create their final proposal.

Step 5: identify the information you need from the vendor and proposal format

If you don't specify the information you need from the vendor you'll end up getting a hodge-podge of information, some of which might be useful to you, most of which will be boilerplate. Using the website redesign example, the following includes some of the questions and information you might ask and request:

Proposals should include the information outlined in this section; our ability to interpret and apply your proposal to these questions will factor into our decisions.

1. Describe in detail the firm’s proposal to address the requirements outlined in this RFP, including details such as technologies to be used.
2. Provide a timeline for the completion of this proposal; if the project involves a multi-phase approach please provide approximate timeframes.
3. Describe the fee structure and how the organization will be charged. The costs involved may be categorized separately as redesign, implementation costs, maintenance costs, and software licensing costs. Also include the firm’s plan for post-deployment maintenance, support and upgrades including hourly rates for services.
4. Provide a brief history and profile of the firm and its experience providing services for organizations similar to ours. Provide a list of the firm’s clients comparable to our organization; include contact name, telephone number, website location, services provided and length of service.
5. Describe the project process and methodology including sample deliverables from past projects of similar size and scope. Document examples of the firm’s experience in designing/developing each of the project requirements.
6. List the project team (including programmers and designers) and short biographies of each team member. If using freelancers or outside resources please indicate them as such; we reserve the right to approve/disapprove of selected resources. Indicate how many full time staff does your firm employ.
7. All proposals must include a hosting solution, whether that solution is provided by the company or a 3rd party service provider. Please detail the cost structure, hosting platform, uptime statistics, location of the server, data backup and integrity plan, etc. Clearly identify additional costs incurred with a change in hosting site.
8. Please provide an unsigned copy of your standard service contract for our review and any additional stipulations of which we should be aware.

Please be sure to document experience illustrating expertise in:

• working with non-profit organizations and providing design services
• building websites that engage the users and encourage them to register

This is by no means an exhaustive list. Determine the information that you need to make your decision and what information will enable you to select the vendor that is the best fit for your organization and your project.

Step 6: determine your evaluation criteria

Is pricing your only evaluation criteria or are you looking for the best fit and the best project for your budget? And if all of the companies give you proposals for roughly the same price, how will you choose your finalists?

Some possible evaluation criteria for you to consider:

• Is the company good at communicating with us, for both our needs and for their needs during the project?
• Is it important to us to have someone that can come in for occasional face to face meetings or is over the phone ok?
• Do we like the project examples we've been shown and can we easily see our project reflected in those examples?
• Do they seem to "get" us?
• Is their pricing and timeline reasonable and within our parameters?
• Did they educate us on how they will complete our project, the team that will be working on it, and the deliverables that will be provided?
• Is their contract something that we can agree to or will that be cause for concern? (for more on this please read "How not to destroy a project during the contract phase")
  
• Have they adequately detailed the costs and payment plan so we know how we will be charged?
  

These are just a few examples of evaluation questions beyond the "is their pricing the most competitive", but they'll hopefully lead you to a vendor that is more than just a supplier, but a partner in your project.

If you're having trouble writing your RFP, or would like feedback on it, please feel free to contact me at david@confluentforms.com or (413) 303-9612

I'm frequently asked for any tips I might have for people writing proposal responses to Requests for Proposals (RFP) that they've received. After finding me through the RFP Database, seeing the abundance of RFPs that it contains, and knowing that all of those RFPs are open competitions, the natural question is "if I'm going to spend time writing a proposal it has got to be a winner".

So here are my five quick tips that can make your proposal a stronger candidate:

write an amazing executive summary

While you might say you can't judge a book by its cover, when faced with a stack of 30 or more proposals, each consisting of 20+ pages, you better believe that your proposal is judged by its first page. Faced with the situation of having to read 300+ pages of different vendors' proposals many people read the first page and then start skimming, and if they're not skimming, their minds are probably going numb. Your executive summary or cover page should give a 1-page overview of your proposal, hitting all of the high notes for why you are the optimal choice for them, including budget and other pertinent details. Having that information on one page, the first page, makes a great first impression and says to the client "yes, we're thinking of you and trying to be helpful". It's one of the quickest and easiest things you can do to set the tone for the remainder of your proposal.

be succinct

Nothing makes a reader's mind go numb like endless shop-talk, buzzwords, and information that isn't requested nor has any impact on the project. Again, faced with 300+ pages of vendor proposals, you are actually punishing the reader by making them read more than they need to. If you can answer the question in one paragraph why make them read five paragraphs? Focus your proposal and stick to the points that are necessary to convey the information to the client. Go back to the maxim that less is more so long as you answer the questions.

answer the questions

It always makes me laugh when I find myself saying "this seems like a stock proposal" or "fine, but they didn't answer any of my questions!" What's the point in spending valuable time writing a proposal if you've answered questions the client didn't ask and didn't answer the questions they did ask? The best way to show a client you're a good listener? Answer their questions. The quickest way to show a client that you're not attentive to their needs? Not answering their questions. They asked the questions for a reason and they're judging you on the responses so does ignoring them give you a leg up on the competition? Doubtful!

provide relevant examples

The best way to prove to a client that you can successfully complete their project is to show them examples of past projects that you've completed that are similar to their own. Dispel any doubt that they might have regarding your ability to fulfill the project by listing out three to five projects of the same caliber as their own that you completed that have strong similarities. Spell those similarities out so that the client can say "oh, that's just like ours". If that sentence is immediately followed by "and I like what they did here" I'm confident you'll be a finalist.

articulate what makes you the best choice (and not the price!)

Too often companies fall back on pricing as the greatest differentiators between them and their competition. By focusing on price you end up with two problems: there will always be someone that underbids you and you're not bidding the project but instead what you think the competition will bid on the project... which greatly skews your pricing and sets you up for later failure. So instead of focusing on the price, focus on YOU. Get back to your elevator pitch, your 30-second explanation of what makes you new/different/unique/perfect-for-the-job. You want the client to come away from reading your proposal thinking "they seem like the perfect fit for us" which is a much better takeaway than "well, they're the cheapest".


The biggest question that you need to answer in all proposals is "why are you the right choice for this project". If you can do that you're halfway to a winning proposal.