5 steps to an ideal RFP process.
It’s time to find a vendor for your business. Learn the RFP process steps to ensure you find the right vendor for your business needs.
What is an RFP process? A request for proposal (RFP) is a document that describes a project in detail so that vendors can put together a pitch for your business. But it’s much more than just a simple document. It’s an entire process that kicks off a working relationship between a business and a vendor. Here are five RFP process steps to ensure you find the right vendor for your needs.
Step 1: Identify stakeholders.
The selection step of the RFP process isn’t a one-person show. A diverse team from different departments should be part of the selection process to make sure the vendor looks good from all perspectives. Any department with a stake in the project should be included in the decision.
Consider which departments will influence or be impacted by this decision, and ask at least one representative or stakeholder from each to provide input on the RFP process. Putting together a diverse team of stakeholders is the most effective way to ensure you choose the right vendor.
Step 2: Create a project plan and scope.
The key to a successful RFP process is to fully outline your project plan and scope first. Potential vendors need to know all the essential details if they’re going to submit an accurate proposal for your project.
Take the time to consider your organization’s needs and get stakeholder alignment around the project. Identify the primary goals of the project and all necessary requirements. Think about outcomes, expectations, and how you plan to measure success.
It’s also important to consider the project's budget and timeline, including key milestones and dependencies. Then, write it all down. The more specific you can be, the better.
Step 3: Prepare your RFP document.
The entire RFP process revolves around the main document. With your project all planned out, it’s time to write your official request for proposal.
A request for proposal differs from a request for information (RFI), another common business document. An RFI is designed to gather information from vendors to identify solutions to a potential problem. With an RFP, you know the problem and how you want to solve it. It’s for collecting official and actionable proposals from vendors to implement your plan. It’s much more serious.
Your RFP document should include the following sections:
- Introduction.
- Outline and project background.
- Bid deadline and proposal timeline.
- Budget requirements.
- Project scope outline.
- Any concerns or roadblocks.
- Evaluation criteria.
If you’re not sure where to start with your RFP, download a proposal template. Even if you don’t use the template as-is, it’s a great way to find inspiration to get started on your own request for proposal document.
Step 4: Review and evaluate RFP responses.
Once your document is reviewed and ready, you can send your request to vendors as part of the RFP process.
Most organizations post their RFPs on their websites for vendors to easily find, complete, and submit. However, you can always send RFPs directly to vendors if you have their contact information. Some organizations, typically government agencies, might need to use official channels or procurement networks to find vendors.
You should generally wait about two weeks (four weeks for government agencies) to give vendors enough time to draft their proposals — which also gives them time to ask any clarifying questions.
Before you sit down to choose the best vendor, it’s important to come up with clear evaluation criteria. How will you determine which vendor is best for your needs? Establishing evaluation criteria beforehand ensures fairness.
Then, sit down with all your stakeholders and determine which vendor will best suit the needs of your company and each department based on your evaluation criteria.
Step 5: Contract negotiation.
Hopefully, your evaluation process provides you with a vendor who can best suit your business’s needs. Now, it’s time to start contract negotiations.
Luckily, because your RFP was so detailed and complete, both parties should be on the same page without any major surprises. That’s the entire point of the RFP process, meaning your project can go off without a hitch. However, there will still likely be some negotiating to finalize the contract.
When everyone is happy with the proposal, it’s time to sign on the dotted line and get to work. To speed up the contract process, you can always get both parties to sign the PDF contract online — no printers necessary.
Frequently asked questions.
How long is the typical RFP process?
It’s possible to complete all the RFP process steps in as little as four weeks. However, more complicated processes can extend 90 days or longer, depending on your organization’s needs.
Is an RFP the same as an RFQ?
No, they are two separate documents. An RFP is a request for a complete project proposal, down to the minor details like timelines, scope, and milestones. A request for quote (RFQ) simply asks for how much a project will cost with no other information.
Do I need to write an RFP?
No, you don’t need to write an RFP to get a proposal from a supplier or vendor. However, it’s a good idea because it keeps both parties on the same page with respect to the project scope, budget, timelines, and deliverables, helping to reduce potential misunderstandings.
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