The RFP: How to Manage the Process

Bob YeckeAssistant Director, University Unions

University of MichiganAnn Arbor

Use the Right Tool

• Request for Information (RFI)

• Request for Quotation (RFQ)

• Request for Proposal (RFP)

When to Use the RFP

• Multiple suppliers can provide the same solution• You seek to determine the best value of the supplier’s

solutions

• Products for the project can not be clearly specified• Lowest pricing is not the determining criterion for

awarding the contract

• Final pricing structure is negotiated with the supplierPorter-Roth, 2002, p. 2

Use to Secure the Following Services:

• Food Service operations

• Retail operations (bookstore, travel agency, banking service, etc.)

• Point of sale systems

• Consultant services

Form the RFP Committee

• Select individuals appropriate to the needs of the RFP

• Orient the committee as to their roles and responsibilities

Establish the Timeline

***CRITICAL***• Don’t underestimate the amount of time it will

take to complete the process

• Take into consideration your campus calendar

• Strive to ensure that service to the campus

will be seamless

Sample RFP TimelineWeek Task

1 Define the need2 Get approval to proceed

3-4 Select/orient RFP committee5 Develop mailing list

6-7 Write the RFP8 Mail invitation to pre-proposal meeting

10 RFP pre-proposal meeting11 Questions due from prospective supplier11 Answers sent to prospective supplier13 Proposals due

14-15 Analyze proposals17 On-campus presentations

18-19 Reference checks/Site visits20 Selection of preferred supplier

21-25 Negotiate contract30 Approve final construction documents34 Last day of operation for current supplier35 Current occupant move out

36-44 New Supplier construction 45 New Supplier open for business

• Adjust to fit project requirements

• Obtain Committee buy in to the timeline

• Monitor progress periodically

• Adjust as required

Develop the RFP Document

***CRITICAL***

• Work with your Procurement office to develop the RFP

• Is there institutional language that must be included?

• Is there a boilerplate RFP that can be used?

Sections of the RFP

1) Introduction– Define who, what, where, when

Sections of the RFP 2) Operating Standards

– Define your expectations

3) Financial– Are you seeking the highest return to the college

union or the lowest prices for your customers?

– Define who is responsible for what initial costs

– Define ongoing obligations

Sections of the RFP

Sections of the RFP

4) Proposal requirements & award criteria– Define how the proposal should be structured

– Define the criteria that will be used to analyze the proposal

Sections of the RFP 5) Attachments

– Sample lease or agreement– Historical data– Long range planning documents– Campus & building maps

The Letter of Invitation

• Develop your invitation mailing list• Advertise in your local newspaper• Pre-proposal meeting:

– Mandatory or Optional• Keep it simple• Request an RSVP• Establish a web site with pertinent information

The Pre-proposal Meeting***CRITICAL***

• Face-to-face communication

• Find out who is really interested

• Review highlights of information packet

• Tour the available space– Don’t forget to coordinate the tour with the current occupant!

• Allows you to tell prospective suppliers your story

The Pre-proposal Meeting• All questions and answers should be shared with

the group both verbally and in writing

• All questions after the pre-proposal meeting should be submitted in writing and answers sent to all attendees

• The more information you can provide to prospective suppliers, the better they can respond

Reviewing the Proposals• Proposals should be sent directly to the

Procurement office

• Evaluate the proposals against the pre-established criteria

• Operational Expertise• Services (i.e. menu) • Customer Needs • Financial Proposal• Advertising/Marketing/Merchandising • Project Personnel• Presented Approach• Creativity/Flexibility

Reviewing the Proposals

• Presentations by finalists

• Reference checks

• Site visits

• Write justification for selected supplier

Negotiate the Lease

• Legal agreement between supplier and institution

• Partner with Procurement• Seek assistance and input

– Risk Management– Legal Counsel– Health & Safety

• Signing authority• Distribution of copies

Road to Opening

• Approval of construction documents

• Move out of current occupant

• Construction

• Meet with key operating representatives

• The GRAND opening

We have only just begun… Managing the Lease

• A new member of your team

• Creating a harmonious working relationship – the Partnership

• Ongoing communication

• Willingness to share information

• Desire for all parties to succeed

FinalQuestions

and Comments

Bob Yecke734-647-7463

yecker@umich.edu

Additional Information and Reference Materials:Additional Information and Reference Materials:

Website: umich.edu/~yeckerSample Pre-proposal letter

Sample RFP

Sample Lease

RFP article: March 2004 ACUI Bulletin