Understanding the RFP

1
Understanding the RFP

• Instructor Glenn Smith
• Session Leader Kimberly Rogers
• September 10, 2001

2
Kimberly RogersPrinciple ConsultantWashington
Consulting Practice

• Kimberly.rogers_at_us.pwcglobal.com
• [phone]

3
Expected outcomes for todays class

• Become familiar with key concepts associated with
  RFPs and why organizations issue them
• Understand the importance of RFP analysis
• Discover what to look for when reviewing an RFP
• Highlight examples in the sample eArmyU RFP
• Discuss how to interpret what a client is really
  asking for and prepare for proposal writing

4
What is an RFP?

• and how is it similar to a vanity license plate?

5
Requests for Proposals allow clients to

• State their needs and concerns that require
  solutions
• Standardize the format of prospective bidder
  responses
• Ease evaluation time and effort
• Facilitate apples to apples comparison
• Promote compliance to stated requirements
• Increase quality of proposals that are submitted
• Establish procurement expectations and schedules

6
Procurement practices

• Vary with the type of customer, type of
  procurement, and the programs projected cost
• Are not rigidly fixed by law and continue to
  evolve as programs grow and more bidders enter
  the marketplace
• Are increasingly moving away from sole-source
  contracting to practices that maximize benefits
  resulting from competition
• Differ between private and public sector
  marketplaces
• Commercial RFPs are driven by good business sense
• Federal procurements must follow federal source
  selection practices and regulations

7
Federal Acquisition Regulation (FAR)

• Is the primary regulation for use by all Federal
  Executive agencies in their acquisition of
  supplies and services with appropriated funds
• Became effective April 1, 1984
• Issued under joint authority of Administrator of
  General Services, Secretary of Defense,
  Administrator for the NASA, and Administrator for
  Federal Procurement Policy, OMB

8
Most important parts of an RFP
RFP
RFP
RFP
RFP
9
Commonly used terms

• Statement of Work (SOW)
• Contract Line Item Number (CLIN)
• Key Personnel
• Contracting Officer (CO)
• Contracting Officers Representative (COR)
• Deliverable

10
eArmyU RFP exercise Finding the key elements
pwc
11
Recap Why do buyers issue RFPs?
12
Why analyze the RFP?

• and what-the-heck am I supposed to be looking
  for?

13
As bidders, why it is important to fully read and
understand the RFP?

• Understand the needs before launching into
  problem solving
• Determine reasonableness of requirements
• Assess sufficiency of firm capabilities to meet
  requirements
• Assess risks to firm
• Assess costs (relative to potential gains) to
  create a proposal
• Identify conflicting, unclear, or missing
  information
• Identify whether strategic benefit to the firm
  exists

14
Best-practice tips for reviewing RFPs

• Read the RFP quickly to gain overall appreciation
  of the scope of work including technical and
  contractual requirements
• Especially note the table of contents and RFP
  organization
• Read RFP again, 3 or 4 times if necessary, with
  highlighter
• If information is not clearly organized, cut a
  copy of the document apart and reassemble it in
  logical groups
• administrative info, proposal guidance, technical
  requirements, contract requirements, evaluative
  info
• Determine if information is contradictory,
  prepare a list of issues, and clarify them as
  much as you can

15
What about those unclear requirements?

• To ask or not to ask?
• Identify all issues on one list
• Mom was wrong, there are stupid questions
• Dont ask unless you are willing to live with the
  answer
• Can you influence your advantage by asking the
  question?
• Will you tip your hand by asking?

16
As you read, you should be able to

• Clearly understand the client requirementsESSENTI
  AL
• Think about how your competitors will respond
• Do your capabilities or strengths make you
  unique?
• Identify implicit requirements as well as
  explicit ones
• Distinguish wants from needs
• Pick up on client hot buttons or biases
• Start to plan a logical structure for your
  proposal that is compliant, responsive, and
  creates a compelling business case

17

• Analyze the RFP to avoid risk of being
• Non-responsive
• Non-responsible
• Non-profitable

PricewaterhouseCoopers
18

• Checkpoint
• Is it clear?
• Should you bid?
• Can you win?
• Ready to write?

pwc
19
So this is easy, right?

• or complexities underlying the basics
• that make things more interesting

20
eArmyU SOW synopsis
21
Example eArmyU pricing tables

• Turn to Part III of the RFP schedule for pricing
  starts on p 7
• III (a) Contractor shall perform all tasks
• III (b) Estimated Potential Online Enrollments
• III (c) - Enrollment History
• III (d) Disciplines of Interest
• III (e) Pending Legislation
• III (f) Minimum Guaranteed Amount/Contract
  Maximum
• Etc.

22
Example eArmyU pricing tables cont.

• Turn to Part III of the RFP schedule for pricing
  starts on p 7
• Explicit requirements of the instruction call for
• Estimated qty, unit hours, unit price, est. amt,
  est. net amt, guaranteed min amt
• RFP encourages bidders to use as many subCLINs as
  warranted
• For separate institutions offering services
• For separate rates for in-state and out-of-state
  tuition rates

23
Hints about other things to look for

• Read carefully and identify potential risks
• Requirements are sometimes vague
• Understand how the performance-based aspect to
  the work is defined
• How can you use that to your firms advantage?
• How are you going deal with lots of upfront
  capital before receiving payment?
• Implementing and operating the portal
• You provide ISP, internet access, library,
  software, books, tutors, travel, program
  management
• But students dont pay until they take the course
• How can you discern the Armys hot buttons?

24
Things PwC fully didnt anticipate

• The integration aspects of this solution are
  colossal
• High visibility of program in Government,
  politics, and media
• Impact of vague requirements werent always clear
  until solution design and prototyping got more
  detailed

25
You are ready to get started. Questions?
26
pwc