WELCOME TO

ISECON 2003

Information Systems Education Conference

“Join the I.S. Fleet”

November 6-9, 2003San Diego, California

TEACHING THE DEVELOPMENT OF EFFECTIVE REQUESTS FOR PROPOSALS (RFP’s) IN THE

AREA OF COMPUTER HARDWARE/SOFTWARE/SERVICES SELECTION

By

John Maniotes

Charles WinerComputer Information Systems and Information Technology Department

ISECON 2003

http://www.calumet.purdue.edu

Purdue University Calumet

Hammond, IN 46323

USA

TOPICSTOPICS

• Surveys of the computer and IS marketSurveys of the computer and IS market• Current and future trends in IS Current and future trends in IS • Organizational and administrative Organizational and administrative

considerationsconsiderations• Requirements AnalysisRequirements Analysis• Composition of the RFPComposition of the RFP• Vendor’s responses to the RFPVendor’s responses to the RFP• Validation of the proposed systemValidation of the proposed system• Performance measurement approachesPerformance measurement approaches

TOPICS CONT.TOPICS CONT.

• Selection techniquesSelection techniques• Vendor negotiationsVendor negotiations• Procurement issuesProcurement issues• Vendor contractsVendor contracts• Conversion and compatibility issuesConversion and compatibility issues• Case studiesCase studies• Student Team RFP ProjectStudent Team RFP Project• Checklists of useful informationChecklists of useful information

SOME SOURCES OF ARTICLESSOME SOURCES OF ARTICLES

• Communications of the ACMCommunications of the ACM• Computer WorldComputer World• DatamationDatamation• Datapro ReportsDatapro Reports• Interactive WeekInteractive Week• PC MagazinePC Magazine• Software MagazineSoftware Magazine• Upside MagazineUpside Magazine• Wall Street JournalWall Street Journal• Sample RFP’s, RFI’s, RFB’s, and Sample RFP’s, RFI’s, RFB’s, and

RFQ’sRFQ’s

SURVEYS OF COMPUTER & IS SURVEYS OF COMPUTER & IS MARKETMARKET

• Various market definitions (past and Various market definitions (past and present)present)

• Market definitions byMarket definitions by– Datamation MagazineDatamation Magazine– Software MagazineSoftware Magazine– Upside MagazineUpside Magazine– Red Herring MagazineRed Herring Magazine– Wall Street JournalWall Street Journal

CASE STUDY OF SAMPLE VENDORSCASE STUDY OF SAMPLE VENDORS• AccentureAccenture• Computer Task Group, Inc. (CTG)Computer Task Group, Inc. (CTG)• Comdisco, Inc.Comdisco, Inc.• Evans & Sutherland Computer Corp.Evans & Sutherland Computer Corp.• Lawson Software, Inc.Lawson Software, Inc.• Manatron, Inc.Manatron, Inc.• Meta Creations, Inc.Meta Creations, Inc.• Micro FocusMicro Focus• Storage TechnologyStorage Technology• SPSS, IncSPSS, Inc• Systems & Computer TechnologySystems & Computer Technology• Sybase, Inc.Sybase, Inc.

MAIN SECTIONS OF THE “IDEAL” MAIN SECTIONS OF THE “IDEAL” RFPRFP

• SectionSection TitleTitle• II Administrative & ProceduralAdministrative & Procedural Information to the VendorInformation to the Vendor• IIII Background Information on the Background Information on the CompanyCompany• IIIIII System Functional Requirements System Functional Requirements Defined by the CompanyDefined by the Company• IVIV Proposal Instructions & TechnicalProposal Instructions & Technical Questionnaires for the VendorQuestionnaires for the Vendor

MAIN SECTIONS OF THE “IDEAL” MAIN SECTIONS OF THE “IDEAL” RFP CONTINUEDRFP CONTINUED

• AppendicesAppendices TitleTitle• AA Programming Standards of the CompanyProgramming Standards of the Company• BB System, Program, & Operation System, Program, & Operation Documentation Standards of the Documentation Standards of the

CompanyCompany• CC Map of the Company’s CampusMap of the Company’s Campus• DD Current Forms/Reports used by the Current Forms/Reports used by the

CompanyCompany of System to be Replacedof System to be Replaced• EE Glossary of Technical TermsGlossary of Technical Terms• FF Suggested Contractual Agreements by Suggested Contractual Agreements by

the Companythe Company

Section I – Section I – ADMINISTRATIVE & ADMINISTRATIVE & PROCEDURAL INFORMATION TO THE PROCEDURAL INFORMATION TO THE VENDORVENDOR

• Purpose of the RFPPurpose of the RFP• Office or Department responsible for the Office or Department responsible for the

RFPRFP• How inquires are to be handledHow inquires are to be handled• Major pertinent dates and deadlinesMajor pertinent dates and deadlines• General format and content for the General format and content for the

submitted proposal by the vendorssubmitted proposal by the vendors• How vendor presentations and How vendor presentations and

demonstrations are to be handleddemonstrations are to be handled• Evaluation criteria & process used to select Evaluation criteria & process used to select

the winning vendor(s)the winning vendor(s)• Any special contractual terms or conditions Any special contractual terms or conditions

required by the companyrequired by the company

Section II – BACKGROUND Section II – BACKGROUND INFORMATION ON THE INFORMATION ON THE COMPANYCOMPANY

• Description of the company, such as Description of the company, such as products produced, location, products produced, location, geographic area, company geographic area, company organization chart, number of organization chart, number of employees, etc.employees, etc.

• Company’s present computer Company’s present computer systems, PC’s, operating systems, systems, PC’s, operating systems, networks, database systems, networks, database systems, applications software, etc.applications software, etc.

Section II – BACKGROUND Section II – BACKGROUND INFORMATION ON THE INFORMATION ON THE COMPANY CONTINUEDCOMPANY CONTINUED

• Telecommunications vendors that Telecommunications vendors that company uses for telephone services, company uses for telephone services, wireless communications, frame relay wireless communications, frame relay services, T1 communications, etc.services, T1 communications, etc.

• Internet service providers to the Internet service providers to the companycompany

Section III – Section III – SYSTEM FUNCTIONAL SYSTEM FUNCTIONAL REQUIREMENTS DEFINED BYREQUIREMENTS DEFINED BYTHE COMPANYTHE COMPANY

• Detail description & profile of the current Detail description & profile of the current system to be replacedsystem to be replaced

• Transaction volumes, activity, & other Transaction volumes, activity, & other statistics associated with the system to be statistics associated with the system to be replacedreplaced

• General functional system requirements & General functional system requirements & company location of proposed systemcompany location of proposed system

• Hardware requirements for the computer Hardware requirements for the computer systems, printers, scanners, communication systems, printers, scanners, communication access devices, networking hardware, etc.access devices, networking hardware, etc.

• System software requirements for the System software requirements for the operating system, DBMS system/programming operating system, DBMS system/programming language, report generators, etc.language, report generators, etc.

Section III – Section III – SYSTEM FUNCTIONALSYSTEM FUNCTIONALREQUIREMENTS DEFINED BYREQUIREMENTS DEFINED BYTHE COMPANYTHE COMPANY

• Application software functional requirements Application software functional requirements for each module and security considerations. for each module and security considerations.

• Education and training requirements for Education and training requirements for executives, managers, supervisors, executives, managers, supervisors, programmers, operators, and clerical users. programmers, operators, and clerical users.

• Documentation requirements such as hard Documentation requirements such as hard copies, CD’s, DVD’s, & on-line manualscopies, CD’s, DVD’s, & on-line manuals

• Installation, maintenance, & support Installation, maintenance, & support requirements for the proposed equipment & requirements for the proposed equipment & softwaresoftware

• Performance evaluation & acceptance Performance evaluation & acceptance criteriacriteria

PROPOSAL INSTRUCTIONS & PROPOSAL INSTRUCTIONS & TECHNICAL QUESTIONNAIRES FOR TECHNICAL QUESTIONNAIRES FOR THE VENDORTHE VENDOR

• Description of the written proposal format Description of the written proposal format that ALL vendors must followthat ALL vendors must follow

• Cover letter formatCover letter format• Requirements that vendor can & cannot Requirements that vendor can & cannot

satisfysatisfy• Proposed hardware configuration, systems Proposed hardware configuration, systems

software, applications software, etc.software, applications software, etc.• Proposed installation, maintenance, Proposed installation, maintenance,

conversion, education & training schedulesconversion, education & training schedules• Project organization schedule for de-Project organization schedule for de-

installation of existing systems & installation of existing systems & installation of new systeminstallation of new system

PROPOSAL INSTRUCTIONS & PROPOSAL INSTRUCTIONS & TECHNICAL QUESTIONNAIRES FOR TECHNICAL QUESTIONNAIRES FOR THE VENDOR CONTINUEDTHE VENDOR CONTINUED

• Proposed vendor support services & backup Proposed vendor support services & backup facilitiesfacilities

• Cost figures for all items proposed such as: Cost figures for all items proposed such as: purchase costs, rental, & lease with purchase purchase costs, rental, & lease with purchase optionsoptions

• Vendor’s standard contracts for items proposedVendor’s standard contracts for items proposed• Description of technical questionnaires that Description of technical questionnaires that

vendors must complete.vendors must complete.– Short question, short answer type/styleShort question, short answer type/style– Yes – No type/styleYes – No type/style– Questions dealing on the requirements identifiedQuestions dealing on the requirements identified in Section IIIin Section III

SAMPLE RFP’s WRITTEN BY SAMPLE RFP’s WRITTEN BY STUDENT TEAMSSTUDENT TEAMS

• Payroll system for a small businessPayroll system for a small business• Human resource system for a Human resource system for a

manufacturing companymanufacturing company• Financial system (A/P, A/R, & Financial system (A/P, A/R, &

Budgeting)Budgeting)• Municipal water billing systemMunicipal water billing system• School district grading, scheduling and School district grading, scheduling and

attendance systemattendance system• County law enforcement systemCounty law enforcement system• LAN system for a small law firmLAN system for a small law firm• Outsourcing services for a school Outsourcing services for a school

systemsystem

SOURCES FOR PUBLIC DOMAIN SOURCES FOR PUBLIC DOMAIN RFP’sRFP’s

• General Services Administration (GSA)General Services Administration (GSA)– Department of DefenseDepartment of Defense– Small Business AdministrationSmall Business Administration– Center for Disease Control & PreventionCenter for Disease Control & Prevention

• State GovernmentsState Governments• County GovernmentsCounty Governments• City/MunicipalitiesCity/Municipalities• School DistrictsSchool Districts• Fortune 100 CompaniesFortune 100 Companies

STUDENT’S PROJECT STUDENT’S PROJECT NOTEBOOKNOTEBOOK

• Cover PageCover Page• Table of ContentsTable of Contents• Abstract of the RFP ProjectAbstract of the RFP Project• Gantt Chart of the ProjectGantt Chart of the Project• List of AssumptionsList of Assumptions• Introduction, Purpose, Scope, etc.Introduction, Purpose, Scope, etc.• The RFPThe RFP• Description of Innovative/Unique Description of Innovative/Unique

SolutionsSolutions• Recommendations and ConclusionsRecommendations and Conclusions• Bibliography of ReferencesBibliography of References

PRESENTATIONSPRESENTATIONS

• Checkpoint 1Checkpoint 1– Week 9Week 9– 15 Minutes15 Minutes

• Checkpoint 2Checkpoint 2– Week 10Week 10– 15 Minutes15 Minutes

• Checkpoint 3Checkpoint 3– Week 12Week 12– 15 Minutes15 Minutes

• Final PresentationFinal Presentation– Week 15Week 15– 45 Minutes45 Minutes

POSSIBLE GUEST SPEAKERSPOSSIBLE GUEST SPEAKERS

• MIS/IT DirectorMIS/IT Director• VendorVendor• CFOCFO• LawyerLawyer

FEEDBACK FROM

• Advisory Committee Advisory Committee • Older/More Mature StudentsOlder/More Mature Students• CIS AlumniCIS Alumni

END OF PRESENTATIONEND OF PRESENTATION

• QUESTIONSQUESTIONS• COMMENTSCOMMENTS• OBSERVATIONSOBSERVATIONS