Request for proposal
RFP is a business document that announces a project, details what the business expects from the vendor, and calls out to potential contractors. RFP is used in project outsourcing. Many organizations and the government prefer to launch their projects through RFP as it is the best way to get the most capable vendor. Those who submit their bids are aware of the expected responsibilities and thus can access their capabilities before bidding. Depending on the business’s nature, structure, and budget, one person or a leadership team can formulate the organization’s RFP. The document must be clear, concise, and provide a detailed description of the project requirements. In most organizations, the information system departments tend to outsource projects and thus must prepare an RFP. These projects are launched to either solve a certain problem in an organization or enhance operations within the firm. However, the outsourcer may lack the skills or expertise needed to complete the project, hence outsourcing.
RFP in IT includes software development, website design, information risk assessment, and mobile app development. Most organizations prepare RFPS seeking software development services from vendors. For instance, an organization may request bids from contractors who can develop accounting software to be used by the finance department. Secondly, most organizations, including the government, develop RFPs soliciting bids for contractors to develop the organization’s website. Lastly, with the growing advancements in technology, businesses seek people who can develop mobile apps.
Analysis of Procurement statement of work
This statement provides details of the procured item to let the sellers know if they can provide and deliver the product to the buyer. It may also show the levels of quality, quantity, work location, and performance period. Lastly, the statement may include a detailed description of the collateral services needed for the project. The information systems risk assessment RFP was issued by the National Association of State Workforce Agencies NASWA. NASWA issued the RFP to seek partners in developing systems security assessment. Given the large amount of data the agency deals with, it needed to enhance data security.
As discussed earlier, mobile app development is another example of IT RFP. For instance, Hemisfair Park Area Redevelopment Corporation issued an RFP to find a partner to develop an augmented reality mobile app. In particular, the objective was to offer visitors a great experience while walking through the park. The RFP indicated the overall vision of the project, maps of the park, and the functionality required to allow vendors to understand the project fully.
Further, the Housing Opportunities Commission of Montgomery County issued a software development RFP. The goal was to find a partner who would develop software that would enable the organization to meet the needs of the tracking system and freedom of information act request form. The RFP gave clear specifications of what was expected from the vendor and the project timeline. Lastly, Design Lights Consortium issued a website design RFP. The RFP shows the specific needs of the organization and the information needed to be on the website. This RFP is rather direct and asks specific project-related questions to enable the organizations to compare their options easily.
Analysis of selection criteria and methodology used
The selection criteria and methodology used to show how the outsourcing firm will choose one vendor among the many bids submitted. The contractor selected is the one who is of most value to the firm and can achieve the project’s objectives effectively. For HOCMC, the vendor selected would; perform the following duties effectively;
the winning proposal was the one that would represent the organization’s values.
On the other hand, for Hemisfair Park Area Redevelopment Corporation, the contractor who would win the tender was the one whose organization had a history of performance and who would indicate the ability to deliver the app within the shortest time possible. In addition, the vendor selected would be the one whose pricing aligned with the organization’s budget. For NASWA, the winning contractor would be one with a good performance record and whose values and culture were not conflicting with those of NASWA. Other basic considerations would be timeliness and cost-efficiency.
Types of contracts used in the RFP
There are three types of contracts; fixed-price contracts and cost-reimbursable contracts. Fixed price contracts involve the payment of a lump sum amount for each contract and can be further classified into three categories; firm’s fixed price, fixed price with incentives, and fixed price with economic price adjustment rider. In contrast, cost-reimbursement contracts involve compensation for the costs incurred while carrying out the agreed scope of work. For software development contracts, the type of contract that is most suitable is the fixed price. This is because the vendor sells a difficult service to break down into small units. The same case applies to App development and system security assessment. In a nutshell, IT projects mostly use fixed price contracts.
Request for proposal