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If you’ve seen the acronym “RFP” in the world of procurement, you might be wondering, ‘what are RFPs?’. Here, we explore all the essentials when answering the question: what are RFPs?
A request for proposal (RFP) is a document that announces a project and invites proposals, typically through the bidding process. This is issued by prospective buyers interested in procuring a service or commodity, aimed towards suppliers to submit proposals. Typically, these are created via an RFP template.
Simply put, an RFP is an announcement of interest by companies/government agencies that seeks out third-party suppliers to aid them. The RFP document outlines what the buyer’s needs, in addition with the bidding process specifics. This will include an outline of the requirements and terms of the contract. Bidders must be able to demonstrate adherence to the terms and specification requirements to be successful.
Here, we run through the importance of RFPs, and what these documents include.
RFPs allow prospective buyers to undertake a vetting process and compare the solutions of different suppliers. The aim of this is to narrow down the best provider applicable to their requirements. Requests for proposals typically lead to a contract for the required services.
This vetting process essentially allows a buyer to find suitable providers faster. This process presents a commissioner with the strengths and weaknesses of each supplier in their proposals. As a result, the need to spend time and resources on finding them is eliminated.
Searching for an applicable provider can be time consuming and costly. An RFP eliminates the need for manual search, prompting vendors to come to you with a response. Each vendor includes their plan of action along with their bid for the project, making selection easier. Additionally, this efficient way of gaining supplier information comes without the need to enter any contractual obligations.
RFP responses outline the supplier’s “proposal”. This is typically a bidding process which demonstrates how the provider can meet the demands of the buyer. What this entails depends on what the buyer needs to know. For example, the format might include questions about your delivery of service, alongside your pricing.
Since we have now answered the question of ‘what are RFPs?’, you might be wondering what they include. While RFPs often accompany a standardized approach, it is important to understand what is typically included. This can include but is not limited to:
The purpose of the request and an overview of the project will be clearly stated. This will include a small description of the company/agency issuing the request, and sometimes a project name for reference. The project overview will emphasize what is needed from vendors.
The schedule and key timeframes of the proposal will be stated. This will include deadlines, potential contract award dates, and project-specific timeframes. This also helps the bidding supplier keep in line with the guiding principles.
The goals of the project will be clearly stated, in line with key milestones. This is also where the buyer states their priorities, preferences, and any essential supplier criteria.
The RFP sets out the scope of the project. This outlines the necessary project deliverables, the requirements for the work or service to be carried out.
The RFP will also consider how roadblocks and barriers can be removed. This will include a comprehensive list of risks that are associated with the project. The aim of the RFP is to seek out how suppliers can remove or manage these risks.
The RFP will clearly outline how proposals submitted by suppliers will be evaluated. This will typically be divided up into different components of the proposal, with a clear indication of scoring. This also helps prospective suppliers gauge their potential for success against the requirements.
The agency or company issuing the RFP is also responsible for ensuring the requirements for submission are clear. This will outline what is required of the supplier in the proposal, such as what documentation is required. This will also include how and where this will need to be submitted.
The prospective buyer will provide contact details in the RFP for suppliers to seek additional information or clarification. This might include names of the issuers, along with email addresses or phone numbers.
The goal of any RFP response is to outshine your competitors and demonstrate your suitability to the project. Here, we have a rundown of some tips to help strengthen your response quality.
While it may be obvious, it is still important to note that RFPs can often have fast turnaround times. It is better to review the response well ahead of time, leaving plenty of time for any clarification questions. Waiting too long runs the risk of lowering the quality of the proposal, or even missing out on the opportunity.
It is crucial to realistically consider the solution you can provide against the requirements of the RFP. If you have doubts about your ability to provide a sufficient response, it may be better to decline to propose. There are many reasons suppliers might come to this conclusion. Perhaps the timeframes were too restricting, or your company just isn’t resourced to deliver the buyer’s needs. Sharing this with the issuer would also help them tailor which projects can be brought to you in future. The exchange of feedback is always a net positive in the RFP process and developing working relationships.
RFPs typically come with strict instructions for formatting and submission. If your response does not fall in line with these requirements, you run the risk of automatic rejection. You should ensure your response falls in line with the format issued by the buyer or the standardized template used. Should your proposal be incorrectly formatted, this makes it difficult for the buyer to assess and may result in rejection. Unsure about the RFP instructions? Seek clarification from the buyer.
Suppliers will often have questions about the proposal process as they are drafting their response. It is important that these queries are raised with the buyer sooner rather than later. This ensures you won’t have to make big changes to your proposal as the deadline nears. It is worth liaising with the buyer to be clear on all steps before any deadlines as early as possible. Sometimes buyers provide an open Q&A format, which is shared with all suppliers for fairness reasons. It is always worth getting a full understanding of what is required so you don’t face automatic rejection.
Sometimes, buyers will request certain documents alongside your proposal. This typically includes relevant business documents and company policies. It is important to check whether this is stated as a requirement before submitting your proposal. Failing to provide the buyer with this where they have asked could mean your proposal will be rejected. On the other hand, the buyer may also state that any additional documents will not be factored into the evaluation. It is important to check this, so you are not missing a key requirement.
When constructing your proposal, it is important to remain specific and reduce any guesswork for the buyer. The buyer will want to know exactly how you can deliver for their project. Getting into the details about your procedures, including any examples, will read far better than a vague response. Comprehensive method statements demonstrate your competence, which is essentially the goal of the proposal. While you know your business, it can be difficult to put this into writing in a way that is persuasive. Get in touch with the Hudson Succeed Team if you need help constructing a winning proposal!
Sourcing technologies are rapidly overtaking the manual processes of searching for suppliers. It would be advantageous for suppliers to be registered on sourcing platforms such as SAM. This presents upcoming projects that you may otherwise not know about. Another benefits this yields is providing you the opportunity to begin constructing your response well ahead of any deadlines.
At Hudson Outsourcing, we are currently in the process of creating unique portals for our U.S. clients. This portal will be a more streamlined procurement experience compared to SAM. Our portals are being designed to save you time. The portals will be sector-specific; we do the filtering for you. They will source private and public opportunities, as well as RFPs found only on our portals. These portals will be live soon, so be sure to check back in the future.
When a contract appeals to you, make sure to carefully read its RFP. You’ll want to ensure that your business qualifies for bidding and can fulfill the contract in its entirety. Make sure that your bid can be drafted, reviewed and potentially drafted again before the submission deadline. You don’t want to waste time pursuing an impossible bid.
Getting something submitted just in the nick of time can be somewhat of a rush. However, this isn’t always the best policy when there is a potential for new business. There are a number of things that could go wrong nearer to the deadline time that prevents a proposal submission. For electronic submissions, there could be technical faults such as unplanned downtime. Getting your proposal in earlier will ensure that any technical faults can be resolved well ahead of deadlines. Consider things such as time zones and buyer locations. Ensure you are considering the time zone of the buyer if they are international. This will be stated in the RFP document, but it can very easily be missed.
If you’re thinking about responding to a Request for Proposal, ask yourself the following questions first:
We’ve now that we’ve answered the question, ‘what are RFPs?’ and what they entail. However, creating these proposals yourself is the real challenge. Putting your business into words can be challenging. This can be especially daunting when you consider your potential competitors.
Get in touch with Hudson Succeed now for help in constructing high-quality, persuasive proposals!
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