How to Write a Perfect RFP

by Kyle David on July 27th at 7:31 am EST

When a business requires outside help on a project, it often sends RFPs (Request for Proposal) to independent contractors and/or firms qualified to complete a project. RFPs are informational documents created to elicit competitive bids from multiple providers by outlining a set of problems, creating guidelines for acceptance (delivery dates, requirements, criteria, etc.) and requesting proposals from outside parties on how they plan to complete a task.[1]A poorly constructed RFP costs you time, money and could damage your reputation among professional contractors and firms. The benefits of a well-constructed RFP are plentiful and will land you the best candidate for a project.

RFP Benefits
Several important benefits in drawing up an effective RFP should be regarded.

· The document is instrumental in establishing you as the controlling agent in a project. Effective managers and business owners do not have all of the answers, but they know how to delegate responsibility. The requirements of the project should be authoritative, concise and detailed—consistent in tone and insightful. While you are not the expert on the matter, you are the boss and you know where to look to get the job done.

· An RFP is an excellent way to gain free insight from outside sources. If you get 10 quality bids from providers in response to your RFP, not only do you find someone to complete the task, but you also gain nine other perspectives on the project—and for no extra charge. These might come in handy in the future, and you can pass certain ideas along to the provider you have chosen.

· An RFP weeds out the providers lacking the experience and knowledge to complete the project. A quick glance at their proposal will tell you all you need to know. If your RFP is detailed and finished well and you get a mediocre, poorly outlined bid from a provider, it is time to move to the next proposal. A well-done RFP makes it easy to spot inexperience from a mile away and/or scares away inexperienced providers before they send you a proposal.

Avoiding Costly RFP Mistakes
Despite your control of the project, it is still entirely possible to make mistakes in your RFP. These tips could help you avoid poorly completed jobs and save you much-needed time and money.

· Send a list of problems, not a list of solutions. Ask the vendor important questions and put the bulk of the pressure on them (i.e. How would you solve it? What is your plan of action?).[2] Requiring a provider to solve the problem your way leaves you responsible if the provider fails. There is a reason you are seeking the help of a professional.[3] An RFP that outlines a problem and excludes ways to solve it leaves the solution up to the provider. This encourages open-mindedness, innovation and limited liability for your company.

· A hasty, poorly outlined RFP attracts hasty, poorly outlined bids. RFPs are often drawn up quickly and carelessly, not given the precision and attention required in creating an exceptional RFP. Many businesses fail to realize that the quality of project bids you receive from providers is directly affected by the quality of the RFP you send out. How can a prospective provider give a precise set of solutions if he or she can’t effectively assess your problems? Your problems must be clear and concise, and inform providers of what relevant solutions you are willing to entertain.

· A clear objective—or benchmark for success— in the RFP gives your provider a goal and something to work toward. Your RFP should clearly define the parameters of the project’s success using concrete facts and figures.[4] For example, if your provider’s task is to rejuvenate your company’s Web presence, you might say, “Provider’s objective is to increase online traffic by 20% in 2 months, 30% in 4 months, and, ultimately, 75% in 12 months.” If you can get any more specific with your figures, do it, but make sure your goals are achievable.

· Specify your budget and financial requirements to avoid wasting yours and the prospective providers’ time. Financial clarity is always important. If anything is unclear, you face a larger risk of surprises surfacing down the road and a bidder wasting time on a proposal (not to mention wasting your time reading a proposal). Tell providers what you’re willing to spend with the understanding that you might accept higher bids for exceptional solutions and proposals.

· Be clear on logistics. Are you looking for affordability, the best solution, the fastest completion? Specify your needs so bidders can construct their proposals and bids accordingly. Additionally, include how you would like to receive proposals, whether via e-mail, hard copy, fax, how many copies, etc. Be very clear about deadlines, meetings, time frames and plan implementation.[5] Again, clarity is the key.

The Perfect RFP: the Gift That Keeps on Giving
An exceptional RFP, while time consuming to prepare, is worth every ounce of the effort put into it. Releasing a solid RFP will yield a faster result, saving you money, time and frustration. Your best efforts now will allow you to pinpoint the objective, what you are looking for as a company, and make project management and communication much more efficient later on.

The perfect RFP will attract the perfect candidate, and your results will be the best they can be.