One method of procurement of both products and services is through a bidding process. Responding to a bid, especially for first-timers, can be an intimidating, time-consuming and stressful experience.
A starting point is to understand some key documents that have a place in the procurement process. Some are used at the start of the process when the purchaser is researching. Others are used once needs are determined and viable bidders are determined.
Suki Mhay and Calum Coburn with The Negotiation Experts (www.negotiations.com/training) offer these explanations of the key procurement documents (solicitations):
- Request for Information (RFI) – As the name suggests, this is an open solicitation sent to a broad base of potential suppliers. Its purpose is to gather information to help decide the next steps in the procurement process and/or to build a database of possible suppliers.
- Expression of Interest (EOI) – Similar to an RFI, this, too, is done early on in the procurement process to assess industry interest and to gather additional information.
- Request for Quotation (RFQ) – This is a solicitation sent to potential suppliers containing in exacting detail a list or description of all relevant parameters of the intended purchase. RFQs are intended to make the suppliers’ quotes comparable before negotiations begin.
- Request for Tender (RFT) – This is an open invitation for potential suppliers to respond to a defined need for goods or services. The RFT usually requests information required from an RFI.
- Request for Proposal (RFP) – This is a solicitation sent to communicate requirements and to solicit proposals from potential suppliers with whom a relationship or partnership is being considered.
“Typically, the RFP leaves all or part of the precise structure and format of the response to the discretion of the suppliers,” Coburn and Mhay note. “In fact, the creativity and innovation that suppliers choose to build into their proposals may be used to distinguish one from another.”
- Invitation for Bid (IFB) – This is a formal competitive method of awarding a procurement contract. Sometimes referred to as a sealed bid, it is used when there is no substantive difference among the products or services that meet the specifications and parameters of the intended purchase so that the only differentiator among bidders is price.
More detailed explanations of these terms can be found at: http://www.negotiations.com/articles/procurement-terms/.
SPECIFIC INFORMATION
In order to prepare a winning RFP, it is essential that information is in precise accordance with the outlined requirements. All requested information should be provided and done so in the order and format specified.
Begin the process by writing a proposal outline, written in as much detail as possible. Do so by keeping the customer in mind, says Richard White, president, Fedmarket (www.fedmarket.com), a resource that helps companies sell to the federal government.
“Write the proposal to solve the customer’s problems as they perceive them, not how you perceive them,” he advises. “Don’t try to think for the customer. Give the customer everything asked for in the RFP, down to the minutest of detail.”
In addition, White emphasizes the importance of “writing to each and every solicitation requirement, even if it appears to be meaningless on the surface. Evaluators love to eliminate proposals to save time and effort or, sometimes, to help their favorite organization,” and not addressing all of the specified requirements can get a proposal put in the trash pile.
He offers these additional guidelines:
- Write the proposal in a logical outline using topic and subtopic headings whenever possible.
- Explain how your organization will meet each and every requirement in a clear, concise manner. Describe why your organization is unique, but only when you can be convincing and the uniqueness stands up to scrutiny.
- Give evaluators the material they need to support a decision in your favor.
- Illustrate as much as possible.
- Use appendices for detailed material.
- Use simple, easy–to-understand language. Avoid long-winded sentences. Use simple, declarative sentences. Keep paragraphs concise and short.
- Avoid subjective adjectives that sound boastful. Be specific. Use phrases such as “10-year track record” rather than “excellent track record.”
- Develop a concise staffing and project management plan without any ambiguities in staffing and personnel qualifications. Rewrite resumes of staff members to specifically address the RFP requirements. Interview proposed staff members to determine the specifics of their experience and its relevance to the requirements.
- Do not present extraneous or marginal material.
- Tailor your organization’s qualifications and general information to match the specific requirements of the RFP.
- Differentiate your organization from your competitors. Know your strengths and weaknesses and your competitors’ strength and weaknesses, and write to all four of these points.
- Find ways to present your solutions as unique while still meeting the requirements of the RFP.
- Write to the specific benefits of your organization, your project team and your solutions. Substantiate each of these.
“Don’t get caught in the inherent trap that your organization is the customer ‘end all, beat all,’” warns White. “Everyone thinks this way, but your confidence means nothing to the customer unless it’s backed up with references, performance data and facts.
“Acknowledge your weaknesses in relation to the requirements and negate them as much as possible.”
In summary, he stresses that the proposal needs to be “clear and concise in describing exactly how you will meet the requirements stated in the RFP. Make it as easy as possible on the evaluators who have a big pile of proposals to read.”
