Elements of an RFP

1
Elements of an RFP

• Establish the Team
• Develop evaluation criteria
• Create the RFP
• The RFP Process
• Distribution alternatives
• Pre-Bid conference
• Addendums
• Communication
• RFP Opening
• RFP Evaluation
• Board or Other Approvals
• Negotiations
• Final Contract

2
Determine Who Should Participate?

• Who is the customer?
• Determine required base of support.
• What is a manageable number to work with?
• Determine the role for each participant.

3
Develop Evaluation Criteria

• Put the horse before the cart.
• What do we want to achieve?
• Use a consistent model.
• Develop RFP to address all evaluation criteria.

4
RFP Submittal Types

• Single Submittal - concurrent review of multiple
  components
• Multiple or phased submittals
• Qualifications or Financial Proposals
• Technical Proposals
• Financial Proposals (cost or revenue)

5
RFP Development

• What are the essential components of an RFP?
• Scope of Work
• Information and Instructions
• Demographics
• Definitions
• Schedule
• Evaluation Criteria
• RFP Submission Information

6
RFP Development (cont.)

• Terms and Conditions
• Standard Contract Terms and Conditions
• Specific RFP Terms and Conditions
• Communications
• Specifications
• Pricing Proposal
• Signatures

7
While On the Street

• Pre-Proposal Conference
• Pre-Proposal Site Visits
• Requests for Clarification
• Issuing Addenda

8
RFP Opening

• Receipt of Proposals
• RFP Opening
• Public Opening
• Instructions to attendees
• What information will be given out
• Schedule for award announcement
• Private Opening
• Documentation

9
Post Proposal Presentations

• Technical Aspects of proposal explained.
• Questions and clarifications made.
• Information gathering for possible negotiations.
• Ability to evaluate supplier and supplier
  representatives.

10
Negotiations

• Planning
• Fail to Plan Plan to Fail
• The time to start planning is now.
• Who should comprise negotiating team?
• Define the roles of each team member.
• Consider both Internal and External factors.
• Negotiation Continuum
• See Planning Steps Worksheet (handout)

11
Negotiation Styles

• Win and Lose Concepts
• Win - Win
• Win - Lose
• Lose - Win
• Lose - Lose

12
Negotiation Styles

• Ways a seller can win other than profits
• Cover Fixed Costs
• Introduce a new product
• Learn how to do a job better
• Establish new Market Share
• Ease a cash flow problem
• Advertising value
• Receive larger discounts from their suppliers
  because of added volume

13
Negotiation Styles

• Develop High Aspirations
• Emotions
• Guilt Giving

14
Common Negotiation Techniques

• Limited Authority
• Budget Bogey

15
Final Contract

• 4 Corners Contract
• Contract Letter incorporating pertinent documents