When you need a product or service from an outside expert, your organization needs to prepare a request for proposal (RFP). This is a multi-page document that lays-out the specifications of what you need done.
This is a professionally-prepared explanation of your project. With most instances of RFPs, your organization triggers a bidding war. That’s right. Your request should go to multiple sources that can fulfill the requirements for your organization’s project. Each entity prepares and sends its response to your RFP -- including cost for the project -- and your proposal team and your Board decide on the best offering.
Set-aside many days to work on your proposal. If you do it right, you need time to research your project, develop some compelling arguments for your needs, and create some points to convince the bidder to evaluate your need and prepare a response to help your organization complete your project.
The RFP is an organized package. There are several steps your organization needs to get in order. Detail as much as possible about exactly what you need so the response to the RFP can be accurate and thorough.
Essential actions you take to create your RFP
Research.
Discuss with your management and Board exactly what you need. Is it an attorney? An accountant? A painter to revamp the building’s exterior? A valet service for the annual charity auction? Know what you need. What you need is not necessarily what you want. What you need is not necessarily what is possible. Be realistic about your needs.
Identify your needs.
If you need a caterer for the fall gala and art auction, in the RFP you might specify the anticipated attendance, entree options, dessert choices. Also important, is the size of your kitchen facilities, your thoughts on how many waiters need to be on-hand, and the length of time to prepare and distribute the meals, and clean. While it might be nice to serve chicken kiev with ceasar salad and asparagus in bernaise sauce, roasted chicken breasts with a garden salad and Southern-seasoned green beans might just fill your need.
When writing about the items you need, use the words “will,” “shall,” and “must” when you really require certain things. These words let the other person know these items are requirements. If certain items are merely “wants” use words such as “may,” “can,” and “optional.
Determine what the winner will be like.
The variety of responses you receive to your RFP will all be different. Each respondent will bring different skills and weaknesses. Some will emphasize low costs. Others will stress quality. Others will offer experience. Your management and Board must decide what you are looking for -- lowest cost, quick turn-around, most experience, or some combination of these elements.
Organize the RFP.
This written piece is very important. The information must be organized and presented in correct English with proper grammar. This is no place to be careless or sloppy. Starting with an outline may help get things going. The divisions of information should fall into the following sections, with subsections as necessary:
Cover letter
Introduction to your organization
Requirements you need delivered
Criteria for selecting the winner of the proposal
Timelines
Processes
Craft the Introduction.
This is your organization’s explanation to potential bidders explaining why you are sending this RFP and your goals for accomplishing this project. The introduction may contain a bullet list of key items contained in the document -- including the due date.
An example of an introduction for a catering service might read: “XYZ Organization, in order to celebrate its fall gala, needs catering service for approximately 225 attendees on October 17, 2020. Responsive bids must be received by 8:00 a.m. CDT, August 21, 2020.”
Explain Requirements.
Set-aide much time to think about and prepare this section. In this part of the RFP, you specify the requirements of the dining decor, size of plates and dishes, accompaniment for the entree, whether your crew will serve soup or salad, and how to prepare the dessert. Give general details of what you want. Don’t actually provide guidance on how you want the work done. This section is a good one to have subsections:
Preparation time at the organization’s facility
Set-up time and location
Beginning time of the event
Staff needed for 225 attendees
Choices for entrees and side dishes, as well as dessert
Options: flowers, lighting, china pattern
Selection Criteria.
In this section you tell the bidder how your organization will go about making its selection from the proposals. It is up to your organization to decide how much information to share. You can simply say something like “The XYZ Organization will make the final selection of the winner of the bid.”
Timelines.
This section is important to bidder who wants your project. This item lets the bidder know how much time it has respond to your RFP, and how long the entire process should take. When setting timelines, be reasonable and realistic about the time needed for the project. Give the bidders a fair amount of time to respond. Give the bidders time to really think about and answer your requests. If your project is complicated and will cover a large amount of time, consider these facts when establishing timelines.
Process.
This section informs the bidder just how the process will work. Start from the time when you notify the winning and when the actual work will begin. Also in this section, you can communicate something like “All bids are due on the date noted in the RFP. The proposal team of (organization) will review and evaluate to make sure the bid meets the requirements. The proposal team analyze the submitted bids and evaluate the top three bids to select a winning bidder. The organization expects negotiation to begin, and a written contract to be signed within three weeks?
Send The RFP.
Even in today’s world of electronic communications, organizations often send proposals by mail; yet, emailing a bid is becoming more frequent.
Receiving The RFP.
Members that your management team and Board have appointed to your proposal team determine which entities receive your RFP. You may already have some names in mind. Perhaps there is a group you have used for projects before and would like to invite this business to bid on your RFP. You may have a recommendation from a peer organization you wish to ask to respond to your RFP.
Notify The Winner.
When your organization has gone through all these steps, the next action is notifying the winner. It is also a nice gesture to info the non-winners. This may be difficult or awkward but is very appreciated by the firms not chosen. From this point, it is onward with the project.
If you have questions about preparing a Request For A Proposal, keep in touch with TBFoster Nonprofit Accounting to get your answers. We have solutions to help your organization get your work done with the help of outside teams and experts through the proposal route. Contact our not-for-profit team leader at trent@tbfosteraccounting.com and please join our Facebook group the “Nonprofit Accounting Spot.”
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