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Note: Want to skip the guide and go straight to the free templates? No problem - scroll to the bottom.
Also note: This is not legal advice.

Introduction

Creating and sending an effective Request for Proposal (RFP) is of great importance for any business or organization. By providing vendors with detailed information about the project and its requirements, an RFP can ensure that the best vendor is chosen for the job, that the project is completed on time and within budget, and that any regulations are followed throughout. Moreover, it can help to ensure a mutually beneficial outcome for both parties involved.

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So if you’re looking to create an effective RFP but don’t know where to start, then read on below for our step-by-step guide - plus information on how to access our help library today! Be assured that no ��������Ƶ account is required to use our guidance - we just want to help.

Definitions (feel free to skip)

Stakeholders: People or organizations that have an interest in the outcome of the project.
Deliverables: Tasks or products that are produced as part of the project.
Non-disclosure Agreement: A legally binding document that protects confidential information from being shared.
RFP: Request for Proposal, a formal document used to solicit proposals from vendors.
Criteria: A set of standards used to evaluate potential vendors.
Rating System: A method of objectively comparing potential vendors against criteria.

Contents

• Defining the project scope and objectives
• Researching current projects and needs
• Establishing clear timeline, budget, and deliverables
• Establishing criteria for evaluating potential vendors
• Gathering requirements from stakeholders
• Determining vendor selection criteria
• Drafting the RFP document
• Writing the RFP
• Adding required attachments
• Promoting the RFP to potential vendors
• Developing a list of vendors to contact
• Distributing the RFP to vendors
• Managing the RFP response process
• Answering vendor questions
• Tracking responses
• Evaluating vendor proposals
• Reviewing each proposal
• Comparing proposals against selection criteria
• Negotiating pricing and contract terms
• Identifying areas for negotiation
• Discussing and agreeing to pricing and contract terms
• Making the final selection
• Determining the best vendor for the project
• Notifying all vendors of the selection
• Executing the contract and managing vendor performance
• Signing the contract
• Ensuring vendor compliance with contract terms
• Monitoring vendor performance and service levels
• Finalizing the project
• Verifying project deliverables
• Assessing the overall project success

Get started

Defining the project scope and objectives

• Identify the project or task needed, the desired outcome and timeline
• Review the current organization processes and systems that are in place
• Outline the specific project objectives and desired outcomes
• Set expectations for the project, including budget and timeline
• Create a list of questions to ask potential vendors
• When project scope and objectives are clearly determined, and expectations are set, you are ready to start researching potential vendors and sending out RFPs.

Researching current projects and needs

• Research the needs of the project, including any current projects, their progress, and what their needs are
• Identify any stakeholders who need to be involved in the project
• Find out what resources are available to the project, such as personnel and budgets
• Obtain any relevant documents that contain information about the project
• Collect background information on any potential vendors who may be able to provide the services required
• When you have a thorough understanding of the project and its needs, you can move on to the next step of establishing a clear timeline, budget, and deliverables.

Establishing clear timeline, budget, and deliverables

• Establish a timeline for the project, including when the RFP will be released, when proposals are due, and when a decision is expected to be made.
• Determine the budget for the project, including any funds available for the project and any restrictions on spending.
• Define deliverables for the project, including what must be accomplished for the project to be considered successful.
• When the timeline, budget, and deliverables are established, check them off the list and move on to the next step.

Establishing criteria for evaluating potential vendors

• Identify the criteria used to evaluate potential vendors
• Break criteria down into categories such as service offering, customer service, pricing, and experience
• Develop a set of questions to ask each vendor
• Establish a point system to rate each vendor
• Make sure the evaluation criteria aligns with the timeline, budget, and deliverables
• Once the criteria are established, you can move on to the next step and begin gathering requirements from stakeholders.

Gathering requirements from stakeholders

• Identify the stakeholders in the RFP process, such as internal departments and external vendors
• Schedule meetings and interviews with stakeholders to discuss their requirements
• Use the criteria established in the previous step to ensure the requirements are relevant and realistic
• Document the stakeholders’ requirements in the RFP
• Ensure that stakeholders sign off on the requirements in the RFP

You will know that you can check this off your list and move on to the next step when you have documented all the stakeholders’ requirements in the RFP, and all stakeholders have signed off on the requirements.

Determining vendor selection criteria

• Make a list of criteria that’s important to you, such as the vendor’s experience, pricing, customer service, and any other requirements the stakeholders have specified
• Evaluate the criteria you’ve created and prioritize them, rating them with a number or letter grade
• Reach out to vendors you’d like to include in the RFP process to get an idea of their capabilities and how well they meet your selection criteria
• Compare vendors based on their responses to your criteria and determine which ones fit your needs best
• When you’ve evaluated all the vendors and determined which ones meet the criteria best, you can move on to the next step: drafting the RFP document.

Drafting the RFP document

• Gather all the necessary information needed to create the RFP document, such as vendor selection criteria, desired deliverables and deadlines, budget, etc.
• Consult with stakeholders to ensure all information is accurate and complete.
• Compile all the necessary information into a single RFP document.
• Make sure to include any instructions/guidelines for vendors submitting a proposal.
• Verify all necessary information is present in the document.

When you can check this off your list:

• When all the required information is included in the RFP document, and all stakeholders have approved the document.

Writing the RFP

• Collect information about the project and your organization’s needs
• Draft the RFP using a clear and concise language that is easy to understand
• Provide sufficient background information for vendors to understand the project and provide an appropriate response
• Include any technical specifications needed for the project
• Outline the timeline and evaluation criteria for the project
• Explain the process for responding to the RFP, including deadlines and contact information
• Make sure to review and proofread the RFP before sending it out
• Once the RFP is finalized, you can check this step off your list and move on to the next step.

Adding required attachments

• Ensure you have all necessary attachments ready to include with the RFP, such as a full description of the project, requirements of the vendor, and any other relevant documentation
• Include a timeline for vendor completion of the project and any deadlines for when vendors should respond
• Double-check that all documents are complete and correct
• When all attachments have been added and verified, your RFP is ready to be sent to potential vendors – you can now move on to the next step of promoting the RFP to potential vendors.

Promoting the RFP to potential vendors

• Create a spreadsheet of potential vendors to contact
• Reach out to potential vendors via email, phone, or other communication method
• Ask vendors if they can provide the services requested in the RFP
• Ensure vendors have all the information they need to submit a proposal
• Set a deadline for vendors to submit their proposals
• You will know this step is complete when all the vendors have been contacted and have an understanding of the RFP.

Developing a list of vendors to contact

• Research potential vendors and create a list of those that match the criteria of the RFP
• Reach out to vendors on the list and ask them if they are interested in participating in the RFP
• Ask any additional questions needed to determine if a vendor is a good fit
• Check references of potential vendors to ensure they are trustworthy and reliable
• Keep track of the vendors that are interested in participating in the RFP
• When you have a list of vendors that meet the criteria and are interested in participating in the RFP, you can move on to the next step of distributing the RFP.

Distributing the RFP to vendors

• Create a contact list of vendors to send the RFP to
• Compile the RFP document and any related attachments
• Determine the best method for delivering the RFP (email, fax, mail, etc.)
• Distribute the RFP to each vendor on the contact list
• Include a timeline for when vendors should respond
• Make sure to include a signed and dated copy of the RFP
• Send a notification email to vendors to confirm that they have received the RFP
• When all vendors have responded and the timeline has been met, you can move on to the next step.

Managing the RFP response process

• Set a timeline for vendors to respond to the RFP
• Determine how vendors will submit their responses (e.g. email, online form, etc.)
• Establish who will review the responses and how they will be evaluated
• Monitor the submission process and address any issues that arise
• Track who has responded and who has not
• When all responses are received, notify vendors of their submission status
• When all vendors have responded, you can move on to the next step in the process.

Answering vendor questions

• Develop a strategy for handling vendor questions
• Develop a timeline for responding to vendor questions and make sure to stick to it
• Stay consistent with the answers you provide vendors
• Maintain the same level of detail in your answers
• Respectfully respond to all vendor questions
• Make sure all vendor questions are answered in the same place
• Use the same language and terminology in your responses
• Make sure to include all appropriate documents and/or links when providing responses
• Make sure to include the vendor’s name and contact information in any responses
• When you’ve answered all vendor questions, you can move onto the next step of tracking responses.

Tracking responses

• Set up a spreadsheet, or use an online tool, to keep track of all vendors who have responded
• Include columns for vendor name, contact information, date of response, and any other relevant information
• Make sure to document all responses and emails you send to vendors
• When all responses have been received and all questions have been answered, you can move on to the next step of evaluating vendor proposals

Evaluating vendor proposals

• Gather all of the responses and compare them side-by-side
• Read through each proposal and assess the vendor’s capabilities, qualifications and proposed solutions
• Evaluate the responses based on the criteria and requirements you outlined in the RFP
• Create a scoring matrix to help you objectively compare the proposals
• Make a list of questions for each vendor to clarify any points in the proposal that may need additional information
• Contact references provided by each vendor to get an external perspective on the vendor’s performance
• When you have a clear understanding of each proposal, you can move on to reviewing and making your decision.

Reviewing each proposal

• Carefully read through each proposal, taking notes as you go
• Pay special attention to any notes or questions in the proposal that require follow-up
• Make sure you understand the details of the vendor’s offering, such as pricing, terms, and timeline
• Ask clarifying questions if necessary
• When you’re finished, you’ll have a better understanding of how the proposal meets your needs and you’ll be ready to move on to comparing them against selection criteria.

Comparing proposals against selection criteria

• Review each response and compare it against the evaluation criteria
• Take note of any advantages and disadvantages of each proposal
• Identify any areas of concern
• Score each response based on the criteria
• Compare the scores and select the most suitable one
• Once you have selected the most suitable proposal, you can check this step off your list and move on to the next step.

Negotiating pricing and contract terms

• Reach out to each of the vendors with whom you’re negotiating and provide feedback on their proposals
• Request clarification from any vendors whose proposals don’t meet all of your selection criteria
• Discuss pricing and contract terms with each of the vendors and negotiate to get the best possible deal
• Ask for discounts or other incentives to help reduce the cost of the project
• Keep track of all conversations and negotiate via email whenever possible to maintain documentation
• Ensure you get a written agreement that outlines the final negotiated terms
• When you’re satisfied with the negotiated terms and have a written agreement, you can move on to the next step.

Identifying areas for negotiation

• Identify all areas of the contract that are open for negotiation
• Make sure all relevant stakeholders are aware of which areas are open for negotiation
• Research industry standards and benchmark data to inform your negotiation strategy
• Identify any areas where you can offer something unique or valuable
• Have an open conversation with the vendor to determine their perspective on the areas where negotiation is possible
• Have an open conversation with the vendor to discuss the level of flexibility they can offer in each of the areas you’ve identified
• Use the vendor’s responses to inform your negotiation strategy
• Know your limits and be willing to walk away if the vendor is not willing to negotiate on certain items
• Once you’ve identified the areas for negotiation, you can proceed to the next step
• When you’ve completed this step, you should have a clear idea of the areas that are open for negotiation and the level of flexibility the vendor is willing to offer.

Discussing and agreeing to pricing and contract terms

• Analyze the proposal and identify areas that can be negotiated
• Discuss the contract terms with the service provider and come to an agreement
• Consider third-party assistance, if needed, for negotiating the terms
• Get the pricing and terms in writing
• Provide a signed copy of the contract to the service provider
• You can check this step off your list when you have a written agreement with the service provider on the negotiated terms and pricing.

Making the final selection

• Review all responses to the RFP and compare them in terms of pricing, timeline, qualifications, and other key factors
• Compare the different vendors’ references and ask all the necessary questions to ensure that the selected vendor is the best fit for the project
• Request additional information from vendors, if necessary, to make a final decision
• Narrow down the selection to one vendor and inform the other vendors that their proposal was not accepted
• When you are confident in your final selection and have informed all other vendors, you can move on to the next step of determining the best vendor for the project.

Determining the best vendor for the project

• Review all proposals received in response to the RFP
• Assess the company’s ability to meet the project requirements, budget and timeline
• Compare the proposed solutions and services of vendors
• Research references and review customer feedback
• Have a qualification call with the shortlisted vendors
• Evaluate their responses and select the best-fit vendor
• When you have identified the most suitable vendor, you can move on to the next step of notifying all vendors of the selection.

Notifying all vendors of the selection

• Send a notification to all vendors that have submitted a response to the RFP, informing them of the selected vendor.
• Make sure to keep all communication professional and courteous.
• Make sure to include the name of the selected vendor and the timeline for the start of the project.
• Keep records of all communication for future reference.
• You will know when you have completed this step when all vendors have been notified of the selection.

Executing the contract and managing vendor performance

• Ensure the contract is signed by both parties
• Review the vendor’s performance against the terms of the contract
• Monitor vendor performance on an ongoing basis
• Resolve any disputes in accordance with the terms of the contract
• Make any necessary amendments to the contract

You’ll know you can move on to the next step when you have finalized the contract and have ensured the vendor is meeting the performance requirements.

Signing the contract

• Ensure that the vendor agrees to all terms and conditions, and sign the contract
• Obtain copies of the signed contract and store in an appropriate, secure location
• Verify that all parties have received, signed, and returned the contract
• When all parties have signed and returned the contract, you can move on to the next step of ensuring vendor compliance with the contract terms.

Ensuring vendor compliance with contract terms

• Have the vendor sign the contract and return it
• Ensure the vendor fully understands the contract and all its terms
• Follow up with the vendor to ensure they have implemented the terms of the contract
• Monitor the vendor to ensure they are adhering to the terms of the contract
• Take action if the vendor fails to comply with the terms of the contract
• Check off the task once the vendor has complied with all the contract terms and is in full compliance.

Monitoring vendor performance and service levels

• Set measurable goals for performance and service levels that are in line with the expectations and requirements of the RFP
• Monitor vendor performance and service levels on a regular and ongoing basis
• Utilize key performance indicators (KPI) to assess vendor performance
• Track and document any issues with vendor performance and service levels
• Take corrective action as needed to ensure vendor performance and service levels are meeting expectations
• Establish a system for resolving any disputes in a timely manner
• Hold a periodic review with vendors to ensure all goals are being met

How you’ll know when you can check this off your list and move on to the next step:

• You will know when you can move to the next step when the vendor’s performance and service levels are meeting the necessary requirements and expectations, and any disputes have been resolved.

Finalizing the project

• Review the RFP timeline and identify any potential adjustments or changes that need to be made
• Prepare any additional documents that need to be included with the final RFP (e.g. addendums, terms and conditions, etc.)
• Create a written summary of the entire RFP process
• Compile all of the necessary documents (RFP, attachments, etc.) into a single file
• Submit the file to the appropriate vendors
• Monitor the vendor responses to ensure that all submissions are received
• Once all the vendor responses are received, you can check this step off your list and move on to verifying project deliverables.

Verifying project deliverables

• Review project deliverables to make sure they meet the needs of the business/client.
• Check that all tasks have been completed in accordance with the project requirements and timeline.
• Verify that all deliverables are up to the expected quality standards.
• Look for any discrepancies or issues that can be addressed before finalizing the project.
• Once you’ve verified the deliverables and any changes have been made, you can move on to assessing the overall project success.

Assessing the overall project success

• Establish a timeline of deliverables and due dates
• Create a checklist of criteria to assess the overall project success
• Use feedback from key stakeholders to determine the success of project goals
• Identify areas of improvement to inform future projects
• Analyze and evaluate reports to determine project success
• When all of the criteria have been met, you can check this off your list and move on to the next step.

FAQ:

Example dispute

Suing a Company for Breach of Contract After Failing to Win a Request for Proposal

• Breach of contract occurs when a company fails to fulfill the terms of a contract, including terms that are included in a Request for Proposal (RFP).
• A plaintiff may have a valid case if they can prove that they were financially harmed due to not winning the RFP, and that the company failed to fulfill the terms of the RFP.
• The plaintiff must provide evidence that the company did not adhere to the terms of the RFP, and that the failure caused financial loss to the plaintiff.
• The plaintiff may be able to recover damages such as lost profits, legal fees, and other costs related to the lawsuit.
• The plaintiff may be able to settle the case through mediation or negotiation, or they may take the case to court to seek a judgment.

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