The Request For Proposal (RFP):The Good, The Bad, And Perhaps The Time

to Consider An Alternative

Christopher Urban

ChairmanSUNY Polytechnic Institute

Department of Computer and Information Sciences

Coordinator

B.S. in Computer Information Systems Program

In The Beginning There Was…

In The Beginning There Was…

• The Waterfall Model‒ Project “Stimulus”‒ Basic Requirements Gathering and Analysis‒ Detailed Requirements Gathering, Analysis, and

Specification‒ High-Level (Architectural) Design‒ Detailed Design‒ Implementation‒ Testing‒ Operation and Maintenance

RFPs: A Conduit to External Resources

• Most projects require the use of external resources for a variety reasons– Complexity– Specialized knowledge and skills– Regulations– Availability of assets

• RFPs are used by most private-sector and are required by (essentially) all public-sector organizations for competitive bidding

Why Was The RFP Created?

• RFPs attempt to level the playing field and normalize bids from vendors/partners– RFPs attempt to provide decision-makers with the ability

to compare apples with apples– Attempts to stray from the specifics of an RFP do not

enhance the submitters chances of being selected

High-Level Overview of the RFP Process (1)

• The client initiates the process– Determines the project's requirements– Prepares and issues the RFP

• Vendors/partners formulate a response (or don’t)– Evaluate the client's requirements– Develop an to satisfy the client's requirements– Prepare and submit a response

High-Level Overview of the RFP Process (2)

• The client selects a vendor/partner and initiates the project– Evaluates all proposals – Screens vendors/partners– Selects a vendor/partner – Provides feedback to all submitting vendors/partners

RFP Components (1)

• Components found in many/most RFPs

– Executive Summary

– Background and Current Status

– RFP Requirements Process

– Scope of WorkProject OverviewProject Requirements

Mandatory and OptionalOther Requirements

TechnicalOperationalTraining

RFP Components (2)

– RFP Requirements ProcessStructure of the DocumentParticipation to the RFP

Vendors indicate and intent to respondScheduleQuestions/ClarificationsEvaluation ProcessTerms and Conditions

This section is the domain of the lawyersVendor Presentation

RFP Components (3)

– Response Format– Compliance Matrix

Functional RequirementsTechnical RequirementsPerformance RequirementsSecurity RequirementsAvailability/Schedule RequirementsLegal Requirements

RFP Components (4)

– Vendor ProfileBasic InformationStaff InformationProduct InformationSupport Information

– NDA

Observations About RFPs

• The client is specifying, in gruesome detail, what the deliverable should do and look like– Implies expertise the client may not possess

• All requirements are developed by the client

• Communication is formal and non-collaborative

• Responding to RFPs is not trivial nor inexpensive

An RFI Before and RFP?

• An RFI (Request For Information) has one goal– The client is looking to become educated about potential

vendors/partners

• An RFI allows a client to expand the pool of potential vendors/partners without asking potential vendors/partners to make much of a commitment

RFI Contents

• A Statement of Purpose– Clearly stated goals

• Response Guidelines• General Questions

– Key points around which you’ll make a decision – Request specific capability information related to your

project • Process Details• Legal Stuff (if necessary, such as an NDA)

What is an RFQ?

• An RFQ (Request For Quotation) is fairly uncommon in project work– No specifics of the complete project are provided– More likely used when the primary terms of a deal are

financial in nature– Elements of performance are not important

Vendors/Partners Perceptions of RFPs (1)

• Most vendors/partners are not fans of RFPs– No sense of the competitive landscape– Time to answer RFPs is sometimes/often short– No relationship with the organization sending out the RFP– "Government RFP's were created by the devil."– "What are my chances? 1 out of million! So your telling me

there's a chance...Yeah!"– The functions and features listed in RFPs often do not satisfy

the real “stimulus” for a projectThis may be why many/most projects

are less than 100% successful

How To Improve Your RFPs (1)

• There is a benchmark to use to help you improve your RFPs– Before releasing your RFPs, take your draft and play…

Warning 1: The next slide may contain

the most useful info in today's

talk for improving your RFPs.

Warning 2: Only those over 21 may play.

How To Improve Your RFPs (2)

RFP Drinking Game

http://www.confluentforms.com/2011/03/requests-for-proposals-rfp-drinking.html

•If your RFPs cause vendors/partners to exceed a BAC of .08, perhaps you should consider making some adjustments

Remember The Beginning (1)

• The Waterfall Model‒ Project “Stimulus”‒ Basic Requirements Gathering and Analysis‒ Detailed Requirements Gathering, Analysis, and

Specification‒ High-Level (Architectural) Design‒ Detailed Design‒ Implementation‒ Testing‒ Operation and Maintenance

Remember The Beginning (2)

• The Waterfall Model‒ Project “Stimulus”‒ Basic Requirements Gathering and Analysis‒ Detailed Requirements Gathering, Analysis, and

Specification‒ High-Level (Architectural) Design

RFP released here‒ Detailed Design‒ Implementation‒ Testing‒ Operation and Maintenance

Clients Generating an RFP Have Limitations

• Clients often think “incremental change/improvement” rather than “revolutionary change/improvement”

• Clients often mistake the forest for the trees• Because clients are not technical experts, clients often have

no idea what is possible• Clients often identify reasonable solutions but seldom

identify great or best solutions

• What’s needed? Perhaps more engagement with vendors/partners and more communication.

Replace RFPs With RFSs (1)

• RFS: Request For Solution– The key question in an RFS is this:

How would you solve this problem?

• Some Example Scenarios– Vacations plans– Height of the building– Skip the water– E-mail system

Replace RFPs With RFSs (2)

• Benefits of the RFS approach– Strives to deliver the most effective solution– Promotes innovation– Promotes communication– Promotes client and vendor/partner relationships

Replace RFPs With RFSs (2)

• Disadvantages of the RFS approach– Long project timelines– Higher project costs

Need to guard against being penny-wise and dollar-foolish

RFS: Akin to Agile Development Methods

• An attempt to accomplish project development steps in parallel rather than sequentially– Jump-starts vendor/partner involvement in the process

• Vendors/partners enter the process after the project's stimulus

• Like any methodology, RFS is not a panacea

Final Thought: A Most Useful Heuristic (1)

• Tom Magliozzi passed away this week– He was half of NPR's "Car Talk"– One Saturday many years ago he dispensed these words of

wisdom• There is equation for happiness

Happiness = Reality - Expectations

Final Thought: A Most Useful Heuristic (2)

• You can replace "happiness" in the equation and the equation still holds true

Quality = Reality - Expectations

Satisfaction = Reality - Expectations

That Wraps-Up My Talk

• Thank you so much for enduring me today

• Questions?