How to Write an Effective RFP

Bud Porter-Roth
Porter-Roth Associates

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Presentation Objectives

Plan and organize the RFP effort Outline each RFP section Review requirements, including administration, technical, management, and pricing Set realistic pricing goals Pre-screen a vendor list to select appropriate vendors Set up objective evaluation criteria for selecting the best solution Prepare for post-RFP activities, including site visits, reference checks, implementation activities, and more
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Resource Materials
There are two recommended resource materials for this session.
AIIM TR27 Electronic Content Management Request for Proposal Guidelines Request for Proposal: A Guide to Effective RFP Development by Bud Porter-Roth

Both are available at the AIIM Bookstore or, the book through Amazon
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Agenda
Part 1 Basic RFP Guidelines Part 2 Schedule Considerations Part 3 Evaluation Guidelines

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Paper Files

e-Mail Servers

Business Systems

Microfilm

Electronic Document Repositories Imaging

Photographs

Flash Drives PDAs Local Drives Record Management Systems

Repositories

Web Servers
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Video Libraries

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Which Technologies for Your RFP?

Document imaging (scanning paper) Electronic document management (EDM) Workflow technologies Records management (RM) Enterprise report management (ERM) Enterprise content management (ECM) Content management (CM) A combination of the above?
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ECM Request for Proposals

Part One: Basic RFP Guidelines

If you need a machine and dont buy it, you pay for it without getting it.Henry Ford
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What is an RFP?
An RFP is a grouping of requirements that defines the products and implementation services for an intended ECM project. Vendors review the RFP requirements and propose solutions that are based on that vendors products and services. Each proposal received may be responsive to the requirements but will differ in the actual products, services, and prices proposed.

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What is a Proposal?
A proposal is a vendors interpretation of and response to your requirements. Each vendor may propose a different solution, based on their products, that will meet your requirements Solutions will differ according to each product set, but still be responsive to your RFP Prices will differ providing a range functionality vs. price The result is that you have a choice of vendors, products, solutions, and project schedules that will best fit your needs
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Why RFP?

Used when specifications cannot be sufficiently explicit to permit vendor selection based solely on price Vendor solutions/proposals will be based on different products Vendor proposals will differ in the services provided/offered Vendor pricing includes implementation and customizing services
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Benefits of an RFP Process

Requires you to:

Establish a real need for new product/system Define basic requirements Estimate a budget Develop and establish project timelines Consolidate & scrub final requirements Identify and monitor potential problems Gather information on products and vendors
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Two Approaches to an RFP

Request for Information (RFI)

More information is needed about what you are buying Have a firm idea of what you are buying and are ready to purchase

Request for Proposal (RFP)

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Request for Information (RFI)

Used to research your potential system Used to verify H/W and S/W strategies Used to gather information about implementation strategies Used to gather pricing/budget information Used to gather vendor information Typically not contractually binding

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Request for Proposal (RFP)

Specifies requirements for a system Vendors propose a technical solution Specifies method for purchasing - the contract type Vendors price solutions Vendors propose implementation schedule Contractually binding

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Outline for a Typical RFP

Cover Letter Administrative Section Technical Section Management Section Price Section Appendices

Volumes analysis Network information Sample contract

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Cover Letter

Very brief project description 2 sentences Who is sending the RFP (IT, User dept., Purchasing) Contact info for questions and submittals If intent to bid form is included Important dates for Vendor conference Proposal due date Any other pertinent information
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Administrative Section

Anatomy of the Admin Section Examples

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Administrative Section

Introduction & overview of RFP RFP Ground rules

Bidders conference Relevant dates Etc.

Proposal submission format Evaluation criteria Demonstration requirements ..This is a good area to use ready made boilerplate
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Administrative Section - Introduction

ACME Bank is a federally chartered, publicly traded bank that ranks among the nations top 5 banks and internationally among the top 10 banks. Our main financial products range from private and personal banking to multi-national loans for large construction projects. ACME leads the field for large construction loans in North America and is among the top banks in Europe, Asia Pacific, and Latin America participating in multi-national and multi-bank construction loans. ACME has one of the largest and most secure bank balance sheets in the world. A world leader in multinational construction loans, ACME also dominates the market in risk management, financial structuring, fixed interest issuance and trading, foreign exchange dealing and derivatives, and maintains leading positions in corporate finance and equities throughout the world.
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Administrative Section Example

ACME Bank is releasing this request for proposal (RFP) for the implementation of an electronic document management system for loan servicing and processing. ACME is seeking to implement a global solution with a potential user base of approximately 20,000 users worldwide and would expect a solution of an appropriate scale. Currently, loan documents and portfolios are managed in their paper document form, kept in secure vaults, and copies are faxed or couriered nationally and internationally when needed for review or signature. Electronic document management technologies will eliminate the need for faxing and courier services while providing secure storage, faster access to documents, and disaster recovery capabilities.

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Technical Section

Anatomy of a Technical Section Example requirements

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Technical Section

Description of current business operations Description of current technical environment Description of proposed environment? Functional requirements for application(s) Technical system requirements

.net or JAVA Windows or UNIX or ?? Legacy system(s) interface(s)

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Requirements Document Imaging

Volumes of paper and/or film Capture (backfile conversion?) Indexing (for each document type) Annotation capabilities Workflow (examples of current processes) OCR/ICR/Full Text Security and access control Search Retention and disposal Records management capabilities (paper and electronic)
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Technical Requirements DM

Volumes Capture (bulk load) Indexing Versions Security and access control Search Retention and disposal Records management capabilities
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Technical Requirements RM

Work with all document types paper, film, electronic, etc Your Record Organization File Plan Record Capture, classify, declare Records management, search, display Security and access control Retention and disposal Applicable standards Applicable compliance areas SOX, SEC, DOD
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Technical Requirements - Workflow

Workflow analysis

Provide current workflow process Dont provide the answerslet the vendor demonstrate the new workflow, benefits, and savings

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Writing Requirements
Shall = a requirement Will = a narrative statement Should = an objective or goal Or Define in the Administrative Section what language is used to indicate a requirement is being stated

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Brief Review of Requirements

A statement that identifies a capability, characteristic, or quality factor of a system in order for it to have value and utility to a user A requirement must be measurable in some manner so it can be evaluated A product or service must exist in order to satisfy the requirement (A camel is a horse designed by committee)

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Management Section

Anatomy of a Management Section Management requirements

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Management Section

Project management plan Site preparation responsibilities Delivery and acceptance Maintenance Training Documentation Vendor quals and references

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Management Section Example Requirement

Supplier shall maintain a principal period of maintenance (PPM) from 5:00 AM Eastern time to 5:00 PM Hawaiian time. The supplier shall offer a call-in help desk functioning as a single point of contact for servicing all ACME locations. This help desk shall be accessible via an "800" number. The supplier shall be able to provide on-site personnel to ACME locations within two hours of the initial report of a problem. Problem resolution shall be within four hours from the time the problem was identified. In addition, each supplier shall describe escalation procedures for addressing problems that remain unsolved after a four-hour period of time.
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Management Content Examples

Specify a Project Plan butdont provide the plan itself Vendors must develop and present their own plan and present it in the proposal Ensure that the plan covers:

Schedule Personnel Dependencies

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Price Section

Anatomy of a Price Section Typical pricing requirements

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Price Section

Application software

Cost of building the application Vendor software, third-party software Servers, scanners, workstations Software, servers, cables
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System software

System hardware

Communications

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Pricing Section (cont.)

Project Management Implementation/Installation Maintenance Training Documentation ROI or Multi-year cost analysis (cost of ownership study)

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Appendices

Anatomy of the Appendix section Examples

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Appendices The RFP Toolbox

Current technical environment

Servers Workstations

Current communications infrastructure Workflow analysis diagrams Corporate technical standards ROI information about your company

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Appendices - Contracts Info

Current contract Non-disclosure agreements Terms and conditions documents

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Basic Guidelines Summary

Use the correct RFI/RFP type Organization is the key to success Consistent level of information and terms is key to a successful RFP effort Use the Appendix for large detailed information and contractual information Low price is not always the winner

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ECM Request for Proposals

Part Two: Schedule Considerations

There is never time to do it right but always

time to do it over.
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Overall Schedule Considerations

Original study and due diligence leading up to the RFP Organize and write requirements

Technical Management Pricing

Review and approval of RFP Proposal writing period need by vendors Proposal evaluation period Negotiate the contract?
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Overall Schedule Considerations

Questions and answers for the vendors (it is ok to question vendors and get clarification) Reference calls and checks (short list) Product demonstrations (short list) Site visits (short list) Contract negotiations and award Implementation started User testing and acceptance testing Approved system
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Potential Schedule Issues

How much is enough time for writing proposals? Have vendors been given advanced notice? RFI? pre-RFP strategic meetings? Does the RFP require multiple vendors to combine in order to respond? Is the application simple (document imaging) or complex (imaging, document management, records management, etc.)

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Schedule Considerations

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ECM Request for Proposals

Part Three: Evaluation Guidelines

If you dont know where you are going, any

road will get you there.
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Proposal Scoring and Evaluations

Simple good/bad/maybe? Numerical scoring

Technical = 50 pts Management = 50 pts Use a multiplier *2

Weighted scoring

Low price wins? Price is not evaluated?

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Example Matrix Non-weighted

Description Administrative requirements Technical requirements Management requirements Price Presentation & demonstration Total Points 100 100 100 100 100 500

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Example Matrix Simple Weighted

Description Points Administrative requirements 50

Technical requirements

700

Management requirements

100

Price

100

Presentation & demonstration

50

Total

1000

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Example Matrix Complex Weighted

Description
Administrative Requirements Technical Requirements Management Requirements Price References & Quals

Points
100 100 100 100 100

Weight
.1 .4 .3 .1 .2

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Example Scored Evaluation

Description Administrative Requirements Technical Requirements Management Requirements Price References & Quals Total Points 100 100 100 100 100 Weight .1 .4 .3 .1 .2 Score 50 85 75 100 92 Total 5 34 22.5 10 18.4 89.9

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Example Evaluation Spreadsheet

RFP Reference 2.5 Search Requirements 2.5.1 Search methods 2.5.1.1 Std key word search 2.5.1.2 Std Boolean search 2.5.1.3 Natural language search 2.5.1.4 Proximity search 2.5.2 Use of Metatags Bonus points for additional search methods Point Value 200 25 25 25 25 100 10 Total Points

25 20 15 25 100 0

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Evaluation Report

Names of all vendors Outstanding issues/problems Evaluation criteria review Review of short listed vendors Final recommendation Reasons why Any concerns/issues/risks that should be addressed
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Evaluating Risk

Risk is a potential issue with

a vendor a product/implementation the project itself your company

Risk can be an important evaluation factor Ask yourself what are some examples of risks for your project? Note them down and be prepared to address them.
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Evaluation Summary

All requirements should be evaluated All requirements may not have equal weight and must be evaluated accordingly Site visits and talking with established customers is often overlooked but is a must Evaluation is often underrated but should be given proper resources and time

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ECM Request for Proposal Summary

RFIs and RFPs will help you purchase and implement the right solution Our community, ECM, is a diverse universe with many overlapping technologies and vendors Vendors have strengths and weaknesses within their product lines The RFP process provides you will a roadmap that both you and vendor will follow

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Instructor Information
Bud Porter-Roth Principal Consultant Porter-Roth Associates budpr@erms.com http://www.erms.com 415-381-6217

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Instructor Information

Porter-Roth Associates

Consults in RFP development and writing Assists in developing technical and management requirements Provides workshops, seminars, and on-site training Reviews RFPs prior to release Leverages your existing resources
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