An Easy Time-Saving Tip For RFP's

PurchTips - Edition # 53 July 13, 2004

By Charles Dominick, C.P.M., SPSM

Make RFP Response Analysis More Efficient

How many times have you issued a request for proposal (RFP) that indicated the dates by which you would begin negotiations, execute the contract, begin receiving the goods/services, etc. and you failed to meet those dates? It happens all the time.

Even though the consequences for failing to meet these dates are minimal, you know in your heart that failing to meet the dates is symptomatic of poor planning and/or inefficient processes.

In the typical sourcing process, one task that is often unnecessarily time consuming is summarizing proposals so that they are in an easily comparable format. This task is made difficult by the fact that all bidders proposals look different, may have fine print hidden in 4"-thick binders, and do not make it equally clear what is included in or excluded from their pricing.

Including a standardized response form in your RFP can help make the summarization task easier. And if you are not sure what elements comprise the pricing, you can send out a request for information (RFI) in advance of launching the RFP. The RFI should contain this requirement:

"In some industries it is common to quote pricing as a series of separately priced line items. Please submit a list of all of the typical price components that contribute to your total price. For example, hardware, software, implementation services, training, maintenance, etc."

Considering the bidders' responses will enable you to create a single page RFP response form that summarizes all of the cost information that you need to review. And always include a field for "Other Costs" with a requirement that such costs be explained.

By including a well-developed response form in your RFP, you will be able to quickly analyze supplier responses without scouring scores of pages of fine print and worrying that you'll learn too late that the low bidder was not actually the low bidder because of a detail that you missed. And then you just may be able to adhere to the dates that you specify in your RFP!

Spotlight On Professional Development Opportunities

Are you putting your organization at significant risk by not having good contracts in place? Without contract writing skills, you may be contributing to a disaster waiting to happen. Next Level Purchasing's online class "Supply Management Contract Writing" will help you reduce your procurement risks. This class goes beyond explaining contract law. Through plain English examples and exercises, you will learn how to negotiate and write effective contracts and terms and conditions.

You will learn how to protect your organization from the disastrous effects of suppliers' failure to perform, plus:

• How to choose the most appropriate agreement form
• How to select, use, and develop language for methods of dispute resolution
• How to write key technical provisions such as specifications and warranties
• And so much more!

For more information on this class, other online classes for purchasing professionals, and the Senior Professional in Supply Management certification program, visit:

www.NextLevelPurchasing.com

FREE Offer!!!

There are four irreversible business and technology trends that are likely to cost purchasers like you their jobs in the next 12 months. Do you know what they are? Do you know how to protect yourself from their effects? If not, you should get your FREE report entitled "Career Survival In Supply Management."

"Career Survival In Supply Management" describes these four trends and how they are steadily decreasing the number of purchasing jobs in today's volatile global economy. It then gives you a seven-step process to stay in the game under the new rules. If you want to remain in the purchasing profession for years to come, you owe it to yourself to check out this report!