Request for Proposal (RFP) Overview
Summary:
In selecting vendors to receive University purchase orders and contracts, Purchasing Services uses a variety of tools. The most commonly used tool is the competitive bid process, used for products for which exact specifications can be written and communicated to bidders. The vendor offering the lowest bid for the product is awarded the purchase order or contract.
The competitive proposal process is used for complex services or combinations of goods and services ("Services"). In this process, a variety of factors besides price must be taken into consideration in selecting a vendor.
Regents Purchasing Policy states:
Vendor selections shall be made using an objective process and may be based on total benefits to the University, considering price, level of services and other variables as appropriate.
Purchasing Services will determine whether it is appropriate to invite competitive proposals in lieu of bids. A Purchasing Buyer will oversee all aspects of the competitive proposals process.
A Request For Proposal (RFP) is an invitation to vendors to submit a written offer to supply services. The RFP will require the vendor to define the specific financial and/or service commitments that comprise the offer. Purchasing makes the RFP available to multiple vendors to review and respond with a proposal. Evaluation of competing proposals is based on various criteria, one of which is price.
An Evaluation Team, which may comprise people inside the University and outside the University, evaluates the proposals on the basis of evaluation criteria stated in the RFP. Team members are selected on the basis of their interest in and/or expertise in the services. Prior to awarding proposals $50,000 or over, the buyer will send all non-selected respondents a letter stating the reasons for non-selection of their proposal.
The Evaluation Team may invite finalist(s) to do a presentation to the Team. Information learned from the presentations may be considered in the final scoring of the proposals. The Team may also negotiate with finalist(s).
If the awarded contract is valued at $250,000 or over, Purchasing will obtain approval from the Board of Regents before the contract is awarded.
Timeline:
The timeline for the RFP process varies, based on the complexity of the services to be purchased. A complex service will require a complex RFP, which will require more time to write, more time for vendors to compose a response, more time to evaluate, and more time to negotiate contract terms with the finalist.
A sample schedule for a typical RFP of medium complexity is as follows:
Writing the RFP: July 15 – July 30
RFP issued: Aug 1
Pre-Proposal Meeting: Aug 10
Deadline for Questions: Aug 12
Proposals due: Aug 25
Presentations/Negotiations: Sept 4 - 6
Regents Approval: Oct 12
Date of Award: Oct 15
Confidentiality of RFP Process:
Each potential respondent is provided with the same information and is subject to the same requirements and deadline in order to provide the same opportunity to all.
To preserve the integrity of this highly controlled process, all who are involved, either directly or indirectly, must keep all aspects of the process and the proposals confidential. In most cases, only the Purchasing Buyer may communicate with potential respondents.
On the RFP due date, only the names of the Respondents will be available. Proposals are not available for review by anyone, other than the evaluation team, until after the award is made.
Initiating the RFP Process:
A Purchasing Buyer will decide whether a purchase is appropriate for the RFP process.
To initiate the RFP process, Purchasing will need:
1. A draft RFP document.
3. A list of at least 3 suggested sources, including e-mail addresses, to receive the RFP.
The Purchasing Buyer will work with the department to finalize the RFP. The Buyer will send the RFP to any vendor the department identifies, as well as advertising the RFP on Purchasing's Bid Information Service (BIS).
Evaluating the Proposals:
When the deadline for the proposal submission has arrived, the Purchasing Buyer will forward the proposals to the Evaluation Team with RFP Referral Form and Proposal Evaluation Instructions. This document includes an information sheet on 3 methods of scoring the proposals, as well as a Template for Documenting Evaluation of Proposals.
The Team may, under the Purchasing Buyer's direction, request proposal clarifications from the Respondents.
When the proposal evaluation is complete, the Team will identify finalist(s) and may invite them to do presentations. Negotiations with one or more finalists are also appropriate at this time, as part of the presentations or following the presentations.
If, at the presentations, information is learned that would affect the scoring against the evaluation criteria, the Team may revise their scoring. An explanation for the scoring changes must accompany the revised score sheet.
Awarding the Contract:
The Team completes their evaluation, prepares the Template for Documenting Evaluation of Proposals, and forwards it to the Purchasing Buyer. The Purchasing Buyer reviews the documentation for appropriate process, consideration of all evaluation criteria and well-supported justification for vendor selection. The Purchasing Buyer may request additional information, or clarification from the Team.
When the Purchasing Buyer has approved the documentation, the Team may negotiate the final terms of the contract with assistance from the Purchasing Buyer and an attorney from the Office of the General Counsel, if appropriate. Contracts under $250,000 may then be signed. If the contract is valued at $250,000 or over, the Purchasing Buyer will require the department to prepare Regents approval documents and will arrange for the purchase to be presented to the Board for approval at the next Board meeting. After the Board has approved, the contract may be signed.
