SS Lecture 10

RFP

> A Request for Proposal (RFP) is a set of documents detailing the requirements for a new Information System that will be bought from an external vendor. > The functionality required of the new system must be specified in detail. > The expected number of transactions and performance requirements are also specified. > The RFP may also contain details about the target hardware, network, and operating system environment on which the new system will have to run. > The RFP may also contain details about human resource requirement > RFP must be clear, concise and a consistent document that provides enough information to the prospective vendors. > RFP should not provide too much details

Tender Evaluation

> Assess the bidder's ability to execute a prospective contract on the basis of criteria stipulated in the RFT. > Provide bidders with an opportunity to describe the past or current contracts and work done. Due diligence -Financial stability -Technical capacity -General Record -Reputation

Letter of Intent

> Authorizes the winning bidder to begin work pending the conclusion of contract negotiations. > Useful for internal approvals. > Tentative agreement / contract ( if immediate action is required at the vendor before formal contract is signed).

RFI

Request for Information An open enquiry that spans the market seeking broad data and understanding.

RFQ

Request for Quotation > An opportunity for potential suppliers to competitively cost the final chosen solution(s). > An RFQ is a solicitation sent to potential suppliers containing an exact detail or description of all relevant parameters of the intended purchase > Objectives of RFQ are: - Obtain detailed proposals to evaluate vendor's response - Leverage the competitive nature of the vendor selection process - Ensure the interest of all stakeholders within the organisation will be met - Put organisations in control of the entire vendor selection process > RFQ includes: - Submission details - Introduction and Executive Summary - Business Overview and Background - Detailed specification - Assumptions and Constraints - Terms and Conditions - Selection Criteria

RFT

Request for Tender > An opportunity for potential suppliers to submit an offer to supply goods or services against a detailed tender. > An RFT is an open invitation for suppliers to respond to a defined need as opposed to a request being sent to potential suppliers. The RFT usually requests information required from a RFI. This will usually cover not only product and service offerings, but will also include information about the suitability of the business.

Tender Evaluation - Technical Evaluation

> Compliant or technically acceptable > Clarification required or susceptible (likely) to being made acceptable > Non-compliant or unacceptable > Meets minimum qualifications for corporate net worth, financing capacity, proper incorporation, and operational experience > Has acceptable general record and reputation (e.g., criminal history, civil actions) > Offers minimal service level target. > Guarantees required quality of service. > Offers technical solution allowable by laws and regulations > Offers a technical solution that is field proven, deployed in at least two projects for which references are provided, and can provide the service required by the bidding documents. > Offers to develop or has in development solutions that might meet the service required by the bidding documents as an alternative to a field-proven solution.

What information should be included in a RFT?

> Define ready-made equipment and materials > List the services and work elements > Define mandatory and preferred qualifications > Provide straightforward logistics > Ensure that the technical support is included > Provide hardware upgrade / replacement during the life-cycle > Estimate post contract costs (Eg: maintenance, license renewal etc..) > Payment schedule > Define requirements for a bidder contract plan Analysis of current infrastructure

Issue letter of Intent and Award

> Letter to notify the award of a tender > Requesting acknowledgement and willingness to negotiate a contract > Make public announcement > Vendors who did not win may request evaluation, or lodge a complaint > Bond or bank guarantees could be settled after this stage

The benefits of Tender

> Suppliers benefit from a fair and open tendering process. > Buyers (i.e. public sector bodies) have access to a bigger pool of potential suppliers which enables them to exploit economies of scale and expertise built up by such suppliers across the continent. > Competition is enhanced, which can lead to more competitive prices for contracts

Tender Evaluation - Financial Evaluation

> The lowest bid does not always win. > Full Life-Cycle costs should be considered. > Cost and payment structures should be considered.

Purpose of an RFP

The RFP is prepared and distributed to interested vendors so that they can prepare a response as to how their products meet the requirements. Pricing may also be indicated, but often for large systems pricing is subject to negotiation.