Request for Proposal Flashcards
What are some benefits and pitfalls of Request for Proposals (RFPs)?
Benefit – identifies risks and benefits upfront and brings structure and organization to lengthy process of procurement.
Pitfall – process can be bogged down in unnecessary details, leaving vendors confused on what organization wants. Another pitfall is focusing on pricing as priority.
How do you create sustainable value with an RFP?
The RFP can help you find the ‘right’ fleet management company and other suppliers to help you achieve strategic goals and get the best value for your fleet and organization.
What are the steps involved in identifying the need for a proposal?
- Involve the stakeholders to define the organization’s needs as clearly as possible.
- Separate needs from wants.
Why is it important to involve stakeholders in defining an organization’s needs?
They have more insight on what the issues are within the organization.
What are the three methods of procurement used in both the public and private sector?
RFP, RFQ, ITB (invitation to bid).
When should each procurement method be used?
RFP – vendor inputs solution.
RFQ – simple specs, small expenditures.
ITB – specific product or service.
Who is included in a RFP team?
Fleet manager forms a team that consists of people with necessary expertise, experience and or stake in the purchase.
Who usually evaluates proposals?
Evaluation committee – fleet manager, technical expert, finance manager, sourcing professional, legal expert, end user members.
What time should be allotted for the RFP process?
14-18 weeks.
What are ‘soft costs’?
Costs that are difficult to account. (downtime)
What is the myth of administrative fees?
Vendors will promise lower admin fees to give the impression of best value. Admin fees account for only 2-3% of total fleet budget.
Where do the most significant fleet cost savings come from?
Depreciation, maintenance and fuel account for 78% of overall cost and offer the greatest opportunities for savings.
What are the four major elements that every RFP should include?
- Contractual service terms and conditions.
- Statement of work.
- Proposal submission information.
- Offeror information and representations.
Why is it important not to be too broad or general with the RFP language?
Keep it simple and ask for what you want rather than what can they provide. Receive the right quantitative and qualitative information.
Why is it important to solicit the RFP to the right companies?
Wrong lists equates to wrong responses.
How do lists that are too narrow limit exposure?
Lists that are too narrow limit your exposure to new approaches, better ideas and lower costs from other resources.
How do lists that are too broad limit responses?
Lists that are too broad means receiving too much information that may be irrelevant to the RFP.
What is a BAFO?
Best and Final Offer. Short list of finalists submit their best and final offer. If variables or unforeseen technicalities or expenses were revealed during evaluation, then vendors may lower price due to these discoveries.
What information is included in the Contractual Service Terms and Conditions?
Includes buyer information, coverage details, agreement period, administration, order of precedence, governing law, contractor’s responsibilities, taxes, price adjustment clause, liability and insurance requirements, indemnification clauses, cancellation clause, modification of contract, ethics clauses, and other tailored clauses.
The term ‘Statement of Work’ is often associated with what?
Defines the problem and states the scope, standards and specifics of the desired solution.
What does a ‘specification’ usually define?
What’s needed and expected in order for a proposal to be considered responsive. Define a commodity.
What are some of the common specification types?
- Commercial standards.
- Design specifications.
- Brand name.
- Performance specifications.
What is included in the ‘Proposal Submission Information’ section?
Preproposal meeting/question schedule, evaluation criteria, pricing page.
What’s included on the ‘Offeror Information and Representations’ section?
Detailed pricing information, breakdown of leasing process, fees and charges, implementation and service.
Why is it important that all offerors provide the data in the same format and sequence?
More efficient to organize and compare data.
What are Bid Evaluation criteria?
Criteria to evaluate and differentiate between proposals. Must be tailored to the specific requirement in order to ensure intended and appropriate end results are achieved to meet the organization’s needs.
What is a mandatory minimum system? What is a pitfall of this system?
Pass/fail test to eliminate unqualified proposals as early as possible. Useful if you define minimum requirements very clearly.
Pitfall – you might eliminate offerors that are willing or could meet the requirements if allowed to do so.
What is a point system? What is its weakness?
This system recognizes and finds differences among vendor’s strength and capabilities.
Weakness – based on the assumption all criteria is equally important. If one criteria is more important, you might choose a variation known as the weighted scale system.
