RFP execution a practical guideline to improve selection process
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This document provides a comprehensive guideline for conducting the RFP (Request for Proposal) process aimed at improving the selection of IT services and solutions. It outlines the overall process, reasons for initiating an RFP, the framework involved, and key content required in RFP documentation, including evaluation methods and Q&A sessions. Emphasis is placed on the importance of research, stakeholder engagement, and clear communication throughout the RFP process to ensure successful outcomes.
RFP execution a practical guideline to improve selection process
- 1. Mario Navarro mnavarro.tsi@gmail.com 1 RFP A practical guideline to facilitate the selection process
- 2. Table of Contents PURPOSE INTRODUCTION OVERALL PROCESS REASONS TO RUN THE RFP RFP PROCESS DESCRIPTION PROCESS FRAMEWORK DOCUMENT KEY CONTENT Q&A SESSIONS CALENDAR DEFINITION EVALUATION METHOD SUMMARY 2
- 3. Purpose 3 The purpose of this document is to describe a general guideline to run the RFP process in order to improve the selection process mainly focused in IT services and solutions delivery.
- 4. Introduction – Overall Process 4 Before launching a formal RFP process we should execute some research work in order to get information on business requirements, available solutions in the market, technical platforms or services that might comply with needs as well as the identification of suppliers with proven capabilities to deliver as expected. After completing the RFP process in which we select the best option we should follow the activities to close contract and agreements that will enable new services, projects or solutions. The figure below shows the high level process before and after the execution of the RFP.. Business Need Research Run RFP Formal Agreements Start up Analyze service need or problem to solve Meet requestor Gather business requirement Outline scope of service Overall plan Identify Potential solution or services Identify and meet potential suppliers. Request for Information Evaluation and pre- selection Elaborate service Contract Detail service agreement Detail scope of service Describe OLAs, SLAs, KPIs Escalation process Prepare service set-up Mobilize resources Knowledge transfer (If needed) Enable access to resources Hand over to service delivery or support area. Scope of this document
- 5. Introduction – Reasons to run RFP 5 Reasons to run an RFP process may vary from organization to organization and depend on specific business need or IT goals. But most of the reasons may be based on the following. Improve Quality of Service Current service contract is about to finish and there is a need to improve service quality in order to align agreements to current business reality (i.e. SLA have not been achieved as promised, Business is requiring better response time, new suppliers offering better services, etc) Reduce Cost Company is demanding a best cost-service relation trying to improve cost of the service. Service contract terms and conditions have to be revised looking for a cost saving opportunity. New Project / Service New project have been approved and requires knowledge and experience not available on internal resources. New service is required after the conclusion of a project (i.e. Application Management Services due to new System or Technical Platform). Outsource current in house service IT needs more focus in coordination, management and strategic activities instead operational ones that might be outsourced or requires new technical skills.
- 6. RFP Process Framework 6 PREPARATION LAUNCH Q & A EVALUATE 2nd ROUND DECISION 6 Suppliers selection Confirmation of Business needs List of requirements agreed Define benefits (to get from RFP) Define Evaluation Method - Quantitative Criteria - Qualitative Criteria Elaborate Document - Describe company generals - Describe Business needs - Detail Service Requirements - Define proposal content - Calendar (Due dates) - Q&A approach (Meetings, etc.) - Evaluation Method Send Formal Invitation Face to Face Session if needed Carry on Q&A Sessions - Electronic - Phone Calls - Face to Face Meetings Repeat Sessions if needed Analyze Proposals Evaluate defined Criteria Generate List of Questions Meeting with Suppliers Fulfill Evaluation Matrix Select Finalists Prepare New Requests for Suppliers Inform Finalists Raise new requests Receive Proposals Meeting with Suppliers Complete Final Evaluation Matrix - Advantages/Disadvantages form Repeat Sessions if needed Prepare Presentation Meeting with Decision Taker Agree Selected Supplier Inform Suppliers Initiate Contract revision
- 7. RFP Document Key Content 77 Company Description Vision, Mission Values Structure (Products, Plants, Branches, Stores, etc.) Description of the Need Reasons why Company is launching RFP. Information to Participants Describe the reasons why they were selected as participants in the process and what we are expecting from them Scope of Service - Overview General description of the Scope of Service. Scope of Service - Detail Detail description of the Scope of the service required. Detail description and content will vary from RFP to RFP. But detailed scope should inform about three main areas - Functional Scope (Process covered) - Technical Scope (Infrastructure , Systems requested) - Organizational Scope (Function/users of the service) Detail need of service measures - Minimum SLAs required - Minimum KPIs required - Service Measuring process 1 GENERAL INFORMATION 2 DESCRIPTION OF THE SERVICE 3 RFP PROCESS DESCRIPTION RFP Process Describe the method and stages of the process,, Q&A sessions, communication method, etc Calendar Describe the activities of the process and due dates. Compliance of proposal delivery is a must for suppliers and they need to be aware Contact List Detail contact list and responsibilities (Name, Position, eMail, Phone, Mobile, etc) and the preferred way of contact. 4 PROPOSAL CONTENT Proposal Requested Describe the expected content of the proposal such as, executive summary, Cost of the service, Warranty, Added Value, References, etc. Implementation Plan Describe the need of the service implementation plan, methodology used, best practices and a gantt chart. Evaluation Method Generally describe the method that will be used to evaluate proposals for them to be aware those components that will be heavily considered.
- 8. Q&A Sessions 88 Q&A Sessions are fundamental to align business requirements understanding and reduce assumptions from suppliers in order to receive balanced proposals and according the expectation. There are different channels to conduct Q&A sessions depending on the internal company policies and procedures, estimated effort and specific needs. • Electronic media (email, skype, etc.) – should establish an estimated time to response according defined calendar. • Telephone conversation – This media facilitates the dialogue and better understanding in comparison with written Q&A. • Face to Face Meetings – These may be in two possible ways, single supplier meeting or multiple supplier meeting. When Q&A activity has been completed it is important to share the list of Q&A to all suppliers in order to align criteria and receive proposal with the same base to make them comparable. MeetingsElectronic medias Recommended for first round of question as it facilitates the time response but there is a high possibility to misunderstand question and provide inaccurate answered Recommended for second round for final clarifications, potential request of changes, request additional details, etc. Evaluation of people reactions on specific questions such as speed of answer, self confidence, inaccuracies, etc.
- 9. Calendar (Example) 99 The RFP should contain an agenda to get commitment of suppliers as well as internal team for both IT team and owner function requesting service if this is the case. The duration may vary depending on scope and complexity of the required service. Calendar must be included in the RFP document and should contain the milestones dates. Proposal reception, notification to suppliers, etc. When the duration of activities such as Q&A sessions or Proposal evaluation take longer than expected this should be properly informed (Internally and externally) and notify adjustments to calendar. It is crucial that decision makers requesting the service within the company are properly engaged to comply with the required internal revisions to avoid impact in calendar. First Round Calendar Second and Finalist Round Calendar
- 10. Evaluation Method 1010 Define Quantitative and Qualitative criteria to be evaluated and give a weight depending on the relevance for the business and the expected benefits Evaluate criteria from each supplier proposal and calculate (or give) the earned points Summarize earned points for each supplier to get the overall results according the evaluated criteria An evaluation method should be defined in order to get a better vision of the proposals of each supplier. This is a simple way to give us an idea of which proposal is closer to full compliance with business requirements and have a proper cost-benefit balance avoiding the “temptation” of decision based only in cost. An evaluation matrix can be created as below.
- 11. Summary 1111 Some premises should be considered before and after going into a RFP process as it may take considerable amount of time and dedication of internal resources. Before the process The business need is clearly established in the company’s key goals and people’s objectives. An estimated budget has been approved within the company´s financial planning. Management levels and service requestor are fully engaged. Good level of research of services, solutions and suppliers has been completed. During the process Clear understanding of specific business requirements. Request suppliers potential “proof of concept” during the process when applies. Establish frequency of meetings with service requestor to assure RFP status and keep alignment. Evaluation method should be agreed with service requestor. All Q&A should be equally shared with all suppliers to assure proposal have the same base. Dedicate enough time for proposal evaluation. Any changes in the calendar should be properly notified. Notification to suppliers must be on time with a formal document of rejection or acceptance letter Provide formal feedback to rejected proposals describing the main causes of rejection. After the process Develop a plan to review contract and service agreements involving relevant functions (Legal, Finance, Procurement).. Formalize sign-off Develop a process to start-up the service Prepare knowledge transfer to service delivery / service operations area.