The RFP: How to Manage the Process

Bob YeckeAssistant Director, University Unions

University of MichiganAnn Arbor

Use the Right Tool

• Request for Information (RFI)

• Request for Quotation (RFQ)

• Request for Proposal (RFP)

When to Use the RFP

• Multiple suppliers can provide the same solution• You seek to determine the best value of the supplier’s

solutions

• Products for the project can not be clearly specified• Lowest pricing is not the determining criterion for

awarding the contract

• Final pricing structure is negotiated with the supplierPorter-Roth, 2002, p. 2

Use to Secure the Following Services:

• Food Service operations

• Retail operations (bookstore, travel

agency, banking service, etc.)

• Point of sale systems

• Consultant services

Form the RFP Committee

• Select individuals appropriate to the needs of the RFP

• Orient the committee as to their roles and responsibilities

Establish the Timeline

***CRITICAL***

• Don’t underestimate the amount of time it will

take to complete the process

• Take into consideration your campus

calendar

• Strive to ensure that service to the campus

will be seamless

Sample RFP Timeline

Week Task

1 Define the need

2 Get approval to proceed

3-4 Select/orient RFP committee

5 Develop mailing list

6-7 Write the RFP

8 Mail invitation to pre-proposal meeting

10 RFP pre-proposal meeting

11 Questions due from prospective supplier

11 Answers sent to prospective supplier

13 Proposals due

14-15 Analyze proposals

17 On-campus presentations

18-19 Reference checks/Site visits

20 Selection of preferred supplier

21-25 Negotiate contract

30 Approve final construction documents

34 Last day of operation for current supplier

35 Current occupant move out

36-44 New Supplier construction

45 New Supplier open for business

• Adjust to fit project requirements

• Obtain Committee buy in to the timeline

• Monitor progress periodically

• Adjust as required

Develop the RFP Document

***CRITICAL***

• Work with your Procurement office to develop

the RFP

• Is there institutional language that must be

included?

• Is there a boilerplate RFP that can be used?

Sections of the RFP

1) Introduction– Define who, what, where, when

Sections of the RFP

2) Operating Standards– Define your expectations

3) Financial– Are you seeking the highest return to the college

union or the lowest prices for your customers?

– Define who is responsible for what initial costs

– Define ongoing obligations

Sections of the RFP

Sections of the RFP

4) Proposal requirements & award criteria– Define how the proposal should be structured

– Define the criteria that will be used to analyze

the proposal

Sections of the RFP 5) Attachments

– Sample lease or agreement– Historical data– Long range planning documents– Campus & building maps

The Letter of Invitation

• Develop your invitation mailing list

• Advertise in your local newspaper

• Pre-proposal meeting: – Mandatory or Optional

• Keep it simple

• Request an RSVP

• Establish a web site with pertinent information

The Pre-proposal Meeting

***CRITICAL***

• Face-to-face communication

• Find out who is really interested

• Review highlights of information packet

• Tour the available space– Don’t forget to coordinate the tour with the current occupant!

• Allows you to tell prospective suppliers your story

The Pre-proposal Meeting

• All questions and answers should be shared with the group both verbally and in writing

• All questions after the pre-proposal meeting should be submitted in writing and answers sent to all attendees

• The more information you can provide to prospective suppliers, the better they can respond

Reviewing the Proposals• Proposals should be sent directly to the

Procurement office

• Evaluate the proposals against the pre-established criteria

• Operational Expertise• Services (i.e. menu) • Customer Needs • Financial Proposal• Advertising/Marketing/Merchandising • Project Personnel• Presented Approach• Creativity/Flexibility

Reviewing the Proposals

• Presentations by finalists

• Reference checks

• Site visits

• Write justification for selected supplier

Negotiate the Lease

• Legal agreement between supplier and institution

• Partner with Procurement• Seek assistance and input

– Risk Management– Legal Counsel– Health & Safety

• Signing authority• Distribution of copies

Road to Opening

• Approval of construction documents

• Move out of current occupant

• Construction

• Meet with key operating representatives

• The GRAND opening

We have only just begun… Managing the Lease

• A new member of your team

• Creating a harmonious working relationship

– the Partnership

• Ongoing communication

• Willingness to share information

• Desire for all parties to succeed

FinalQuestions

and Comments

Bob Yecke

734-647-7463

yecker@umich.edu

Additional Information and Reference Materials:Additional Information and Reference Materials:

Website: umich.edu/~yeckerSample Pre-proposal letter

Sample RFP

Sample Lease

RFP article: March 2004 ACUI Bulletin