Understanding the Bid and RFP Process to Win Contracts
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This document provides an overview of different types of bids (RFI, RFQ, RFP) and the bid process. An RFI gathers information about suitability for an upcoming project. An RFQ is used when requirements are known, while an RFP asks how requirements will be met as well as pricing. Following the client's specified format is important. Having an existing relationship and strong proposal can help win a bid. Bids may be public or private sector. Researching the client and tailoring the response is advised. Proofreading and meeting deadlines are also important.
Understanding the Bid and RFP Process to Win Contracts
- 1. Understanding the Bid Process Last Updated: Oct. 29, 2015
- 2. What’s the Difference? • Request for Information (RFI) • Request for Quote (RFQ), Request for Tender (RFT) • Request for Proposal (RFP)
- 3. What’s the Difference? RFI… • An RFI is an information gathering tool. • Asks questions about you and your suitability for an upcoming project. • Often the prelude to short-list to receive upcoming RFQ or RFP. • Also used in the process of identifying a group of preferred vendors. • Similar to RFEO (Request for Expression of Interest) or RFPQ (Request for Pre- Qualification)
- 4. What’s the Difference? RFQ… • Also called Request for Tender (RFT) • Used when client knows exactly what they're looking for. • Includes full description of project including quantities, specifications, timelines and deliverables. • May ask you to quote exactly on specifications provided or that you provide a sliding scale based on quantities or total project dollar value
- 5. What’s the Difference? RFP… • Different from an RFI and RFQ • Often client knows what they want, but not how to get there. • Not only asks how much, but how you will go about providing the service. • Asks questions to determine if you have the right experience and fit for the client. • Often asks you to provide expertise to create a solution that client has not yet considered.
- 6. The Bid Format • For a business proposal, you are in the driver's seat. You decide the format and approach of the document. • For an RFP, RFI or RFQ, the client drives the process and dictates the format of the document. • Extremely important that you follow the format outlined within the RFP. • Often company will disqualify a vendor for not doing so.
- 7. The Ideal Scenario • Your bid response is just one piece of the puzzle. • The ideal scenario is to have an existing relationship, with a champion within the organization. Add to that a killer game plan and a well-written proposal and you can almost smell the ink drying on the contract.
- 8. Mining for Opportunities: Private Sector • In the private sector, most bids are by invitation only sent to a short list of vendors. • The short list is often created by the client by: – Issuing an RFI – Canvassing peers and competitors – Reviewing files maintained of sales calls – Researching the internet
- 9. Mining for Opportunities: Public Sector • Most bids (based on $ value) are mandated to post publicly. They can be posted: – Online through a bid service ex: Merx.com, Biddingo.com – On the organization’s website – Through ads in local newspapers
- 10. Mining for Opportunities: Public Sector • Two exceptions are: – Government of Canada bids and tenders which are downloadable at no charge from their website at https://buyandsell.gc.ca. – Province of Ontario bids and tenders which are downloadable at no charge from their website at https://ontariotenders.bravosolution.com.
- 11. To Bid, or Not to Bid • Perform a cost/benefit analysis • Take a realistic view of your chances • Be sure you can deliver • Consider requirements like insurance and liability
- 12. Do Your Homework • Read the bid document to see if they’ve outlined the decision making team, their key goals and the decision making criteria • Research your client • Research client culture • Consider decision makers and influencers – Who are they? – What makes them tick? – “Package” your response accordingly
- 13. The Bid Response • Follow the required format • Pay attention to dates/meetings – Intention to bid – Q&A deadline – Vendor visits • Speak to benefits • Understand your value proposition • Respect your reader’s time
- 14. The Bid Response (cont.) • Make it right – Proof for clarity and content – Proof for spelling, punctuation and grammar – Proof for visual appeal • Package (if in hard copy) and deliver as specified within the bid document
- 15. Understanding the Bid Process Questions? Email: Debbie@EchelonOne.ca