RFP's,   DID YOU KNOW?

by Dave Cole

RFP is a term we have heard a lot about lately. What is an RFP and what can it do for me? Those are questions I have been asked several times lately. RFP is an acronym for Request for Proposal. What they do is describe a task or project that must be completed, establish competition and evaluate guidelines. In addition, they ask all qualified contractors to submit a proposal to complete the work. RFP's are not contracts, but they are legal documents. They are considered under the law to be the foundation of a contract between two parties. Information provided in an RFP should be reviewed for factual and technical accuracy before it is released to the public. Now we know what an RFP is. What can you use one for and how do you do it. The goal of putting out an RFP should be to encourage competitive bidding for contract work. Components of an RFP are, the Executive Summary, deadline of the proposal delivery and the scope of work. In addition, you need to include a contact person or persons, the location of the work and any other information pertinent to the proposed project. That info could include deliverables by both the contractor and the owner or buyer. The project schedule, contractor qualifications, payment terms, decision dates and notification details are vital parts of the RFP as well. When creating your RFP, be as specific as possible with all information. A large part of proposal writing is defining and describing the situation. Often that entails figuring out what may be left out, as much as it does looking at the information which is submitted. Even if you don't have answers and specifics to everything you need, make a good faith effort to show and explain how you expect the situation to be addressed. Try to keep all proposals on an even playing field. Try to define each of the components that make up your proposal. In your Executive Summary, describe your project goals and problems related to it, then describe the expected deliverables. Always define the exact date and hour which proposals must be submitted by, and make it perfectly clear anything submitted late will not be considered. This is typically known as the closing date or bid date. In the scope of work, outline what you expect to see in the proposal itself, such as a technical or price proposal and the format you want it presented in. Spell out that you require a resume or a certain amount of experience and insist on cover letters. Other proposal information might include whether or not they can receive faxes or e-mails, could info be provided on a floppy disk or is it required to be in a sealed envelope and labeled a certain way. Always be sure to identify the person or persons responsible for answering the questions to the RFP. Include contact information such as phone numbers, mailing address, fax numbers and e-mail address if you choose. You want to carefully describe the work location along with the limits of work. Identify whether the contractor needs to share the work location and if so, who will coordinate that effort. You need to describe specifically what deliverables are expected from the contractor; for instance, maps, diagrams, pieces of equipment and or specific reports. Also describe any equipment, which you want spare parts or O & M manuals for. Conversely, you need to identify exactly what you will be responsible for providing or will not provide. Again, be very specific and do not leave any open verbal agreements. Create a hard and progressive project schedule. It's better to be a little progressive than passive. Make it clear what liquidated damages may be assessed or other actions that will be taken should the project schedule not be met. The applicant qualification process is equally important as well. Be sure to spell out the minimum qualifications you are willing to accept. Years of experience in the related field and successful past projects are important to look at. The payment terms are an integral part of the process. Identify exactly how the contractor will get paid. Explain in detail what are acceptable changes and how they are to be reported. Define the actual payment process, whether it is a progressive plan or one lump sum. Progressive plans are used most frequently and give the owner options should plans be altered. Define submission dates for vouchers and how the Board approval process works. Most contractors are aware of this procedure, but define it for the record.

The final steps involve the manner in which proposals will be evaluated for their ability to meet all the requirements of the RFP. Be sure to have a clearly defined evaluation process so you can verify that the award process was fair and free from bias and corruption. Finally, specify the day which the actual bids will be opened, and if possible, the date the contract will be awarded. In this final step be sure to identify how bidders will be notified of the award decision. RFP's are an excellent tool for systems to use whether they want to buy chemicals for their plant or build a new plant. If you would like more information on how to create your own RFP contact me at the office. The data for this article was provided by; David Robinson, P.E., Associate Clough Harbour & Associates LLP