Fulfilling a business need requires that best possible solution is selected from a host of competing solutions. The only way to do this is through process of competitive evaluation - i.e. tendering process

The Business Need

A tender is published in response to a perceived business need that can only be fulfilled by an external party. Business change and needs are fuelled by changes in business process (es) that organisation employs. It is an accepted fact organisation’s business processes are geared towards achieving tactical goals and objectives of business. Note that organisation structure serves as a functional division of business processes, whereas any technological solution supports execution of process. Organisations should not limit processes to capabilities of any organisational or technological solution. Business change should start with Business Processes and move upwards and outwards to include organisation structure as well as technology enablers. The initial requirement definition should start with Business Processes – with a clear goal identified for business change. The requirements definition is a two-stage process – First assess current situation, then define desired situation. Typical examples of exercises to conduct during this phase include, but are not limited to:

-Business Process Assessments

-Organisational Assessments

-Technology Assessments -Business Process (Re-) Engineering

-Organisational (Re-) Engineering

-Technology Solution Definition

It is imperative to research services or products available in market. Make a list of requirements common to all of services / products. Note that this list defines your requirements for product / service. List requirements uncommon to products and services. This list of requirements defines those requirements that are not necessary, but will benefit your organisation. The results of abovementioned exercises should provide you with enough information to develop a detailed requirement definition. Also include assessment of current situation for later inclusion in RFP – bidders may require this information to tailor their solutions to your specifications, as well as provide more accurate estimates on time, resources and cost.

Write The RFP

The Request For Proposal (RFP) details response requirements as well as solution requirements. Furthermore, RFP sets basis of all agreements between your company and vendor, unless otherwise specified in formal agreement established with selected vendor. The format of RFP should contain certain elements on which vendor must respond. The content will differ based on nature of required solution; however, each RFP should have common elements. At a high level RFP content hierarchy may take following form:

1.Introduction

The introduction contains preamble, instructions on how to read RFP, as well as a Glossary of Terms. This chapter is for benefit of bidders in order to clarify body of RFP.

2.Instructions To The Vendor

This chapter sets groundrules that all bidders must obey if they do not want to be disqualified during evaluation process. Note that most important items to mention here are deadlines, procedures for submission, procedures for clarification as well as other items to which a bidder’s tender must comply. Also indicate need for Tender Securities and Performance Bonds. Clearly indicate what fines will be hefted against bidder should he fail to provide solution within scope of this RFP.

3.Your Company Overview

If required, this section defines current situation experienced by your company. Be sure to include results of exercises conducted during Requirement Definition stage dealing with subject at hand.

4.Solution Overview

This section defines high level overview of required solution. Be sure to incorporate all subsequent components of entire solution. Note that should you choose to have multiple bidders for each individual component, everyone will need to be aware of those components and how they would interact with specific solution. Normally it is preferred to have bidders partner in order to present a single, global and coherent solution. In such a case one of bidders should act as primary liaison and be held accountable for all subsequent bid components. It is prerogative of bidders to establish whatever alliances or partnerships are required for a full solution.

5. Business Profile

This section defines those items on which you will evaluate business profile of a prospective bidder. Note that you should eveluate on numerous fronts, especially if result of tender is a long-term commitment, or of high value. In this section you request bidder to supply such information on business alliances, partnerships, financial stability, market share, and etcetera. Also to consider are capabilities of bidder to support you after selection, as well as infrastructure required to provide solution.

6. Project Approach & Methodologies

This section requests bidder to demonstrate ability to work in a structured and predefined manner. Typically all bidders respond positively in this section, but if it should be that a bidder is not familiar with specific terms and terminology common in field of project management, flag this bidder during evaluation process for extra attention to detail. Furthermore, should a bidder indicate that they are familiar / expert in requirements you stated, then they should be able to supply necessary paperwork to substantiate such a claim. Also request necessary Curriculum Vitae of assignment team if required. This is useful during evaluation process to determine if a bidder has necessary skillets within project scope.

7. Functional, Legislative, & Technical Requirements

This section documents requirements defined during Requirement Definition. Bidders must indicate compliance to requirements. Should a requirement not be met, then this must be clearly indicated. Some bidders may try to create illusion that they support all requirements. In order to catch this out, structure your requirements in such a way as to allow interdependence of requirements, or duplication with different wording. It may be necessary to obtain services of a subject matter expert when writing this section.

8. Financial

This section requests bidder to define cost elements associated with his bid. Ensure that you request a Bill of Quantities, Individual Costs as well as total solution cost. Furthermore, also request that bidder indicate preferred payment instruments, expense phasing, and other financial items that you might require.

9. References

I think there are only two reasons for most any business problem:

1. You don’t know what to do 2. You know what to do but you’re not doing it

And, I also think that 90% of all business problems stem from number two. When I say business problems I mean… why we don’t achieve what we say we want to achieve… or why we don’t do what we say we want to do.

So, of course, next question you might ask is “why don’t we do what we know how to do?” And answer is…. we haven’t built up self-confidence needed for goal at hand.

Look… learning is easy… accumulating knowledge is easy. There are lots of people who know what you need to know and are willing to share information with you. So, again… why aren’t you doing what you say you want to do? Again, I say not enough self-confidence.