The RFP: How to Manage the Process
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Transcript of The RFP: How to Manage the Process
The RFP: How to Manage the Process
Bob YeckeAssistant Director, University Unions
University of MichiganAnn Arbor
Use the Right Tool
• Request for Information (RFI)
• Request for Quotation (RFQ)
• Request for Proposal (RFP)
When to Use the RFP
• Multiple suppliers can provide the same solution• You seek to determine the best value of the supplier’s
solutions
• Products for the project can not be clearly specified• Lowest pricing is not the determining criterion for
awarding the contract
• Final pricing structure is negotiated with the supplierPorter-Roth, 2002, p. 2
Use to Secure the Following Services:
• Food Service operations
• Retail operations (bookstore, travel agency, banking service, etc.)
• Point of sale systems
• Consultant services
Form the RFP Committee
• Select individuals appropriate to the needs of the RFP
• Orient the committee as to their roles and responsibilities
Establish the Timeline
***CRITICAL***• Don’t underestimate the amount of time it will
take to complete the process
• Take into consideration your campus calendar
• Strive to ensure that service to the campus
will be seamless
Sample RFP TimelineWeek Task
1 Define the need2 Get approval to proceed
3-4 Select/orient RFP committee5 Develop mailing list
6-7 Write the RFP8 Mail invitation to pre-proposal meeting
10 RFP pre-proposal meeting11 Questions due from prospective supplier11 Answers sent to prospective supplier13 Proposals due
14-15 Analyze proposals17 On-campus presentations
18-19 Reference checks/Site visits20 Selection of preferred supplier
21-25 Negotiate contract30 Approve final construction documents34 Last day of operation for current supplier35 Current occupant move out
36-44 New Supplier construction 45 New Supplier open for business
• Adjust to fit project requirements
• Obtain Committee buy in to the timeline
• Monitor progress periodically
• Adjust as required
Develop the RFP Document
***CRITICAL***
• Work with your Procurement office to develop the RFP
• Is there institutional language that must be included?
• Is there a boilerplate RFP that can be used?
Sections of the RFP
1) Introduction– Define who, what, where, when
Sections of the RFP 2) Operating Standards
– Define your expectations
3) Financial– Are you seeking the highest return to the college
union or the lowest prices for your customers?
– Define who is responsible for what initial costs
– Define ongoing obligations
Sections of the RFP
Sections of the RFP
4) Proposal requirements & award criteria– Define how the proposal should be structured
– Define the criteria that will be used to analyze the proposal
Sections of the RFP 5) Attachments
– Sample lease or agreement– Historical data– Long range planning documents– Campus & building maps
The Letter of Invitation
• Develop your invitation mailing list• Advertise in your local newspaper• Pre-proposal meeting:
– Mandatory or Optional• Keep it simple• Request an RSVP• Establish a web site with pertinent information
The Pre-proposal Meeting***CRITICAL***
• Face-to-face communication
• Find out who is really interested
• Review highlights of information packet
• Tour the available space– Don’t forget to coordinate the tour with the current occupant!
• Allows you to tell prospective suppliers your story
The Pre-proposal Meeting• All questions and answers should be shared with
the group both verbally and in writing
• All questions after the pre-proposal meeting should be submitted in writing and answers sent to all attendees
• The more information you can provide to prospective suppliers, the better they can respond
Reviewing the Proposals• Proposals should be sent directly to the
Procurement office
• Evaluate the proposals against the pre-established criteria
• Operational Expertise• Services (i.e. menu) • Customer Needs • Financial Proposal• Advertising/Marketing/Merchandising • Project Personnel• Presented Approach• Creativity/Flexibility
Reviewing the Proposals
• Presentations by finalists
• Reference checks
• Site visits
• Write justification for selected supplier
Negotiate the Lease
• Legal agreement between supplier and institution
• Partner with Procurement• Seek assistance and input
– Risk Management– Legal Counsel– Health & Safety
• Signing authority• Distribution of copies
Road to Opening
• Approval of construction documents
• Move out of current occupant
• Construction
• Meet with key operating representatives
• The GRAND opening
We have only just begun… Managing the Lease
• A new member of your team
• Creating a harmonious working relationship – the Partnership
• Ongoing communication
• Willingness to share information
• Desire for all parties to succeed
FinalQuestions
and Comments
Bob Yecke734-647-7463
Additional Information and Reference Materials:Additional Information and Reference Materials:
Website: umich.edu/~yeckerSample Pre-proposal letter
Sample RFP
Sample Lease
RFP article: March 2004 ACUI Bulletin