Steps of Procurement Process Leading to RFP

This article discusses the steps involved in the procurement process leading to a Request for Proposal (RFP). It explains the elements of an RFP and the importance of evaluation and testing. A case study is included to highlight the potential challenges in implementing a solution.

Steps of Procurement Process Leading to RFP
Part A
The full expansion of RFP is a “request for proposal” application. An RFP is a document
listing the requirement specifications of the materials or solutions to be purchased through
RPF, the selection criteria among the vendors who can supply the materials or solutions, the
terms and conditions, the timeline, testing and assessment of the materials, warranty details,
cost estimates and details of the AMC cum agreement (Westfall, 2011). The RFP can be
launched against empanelled suppliers or it can be a global tender where the first phase is to
shortlist the suppliers.
The RFP can be different types like RFP, RFQ and RFI. An RFQ is used when the cost is the
deciding issue for the vendor to offer a solution. An RFI is used to help the issuer with fact-
finding about which suppliers may be able to deliver the solution or the details of the solution
is not known to the issuer. The basic information of the solution is given in RFI and vendors
will detail their solutions to match the basic requirements of the issuer. The steps involved are
a presentation of the solutions of the vendors which include the details of the solution, how
the solution is being used in similar organizations, their feedbacks and test results (Westfall,
Clarke & Langendorfer, 2013). The elements of an RFP are:
1. Project overview: RFP document starts with the overview of the proposed solution, also
known as a summary and background. It is the introduction to the issue and the request for
the desired solution. The project summary will outline briefly what our business is looking
for and why (“Request for Proposal (RFP)”, 1993).
2. Proposal Guidelines: We must clarify to suppliers what we are looking for in their
reaction, including the deadline.
3. Project description and requirements: details of the project requirement are discussed in
this chapter (“Request for Proposal (RFP)”, 1993).
4. Project Deliverables and Scope: This chapter provides information about what we pay the
seller for and what it is supposed to deliver.
5. Timeline: Total length of time within which the vendor has to complete and hand over the
project to the user.
6. Evaluation method: involves a selection process, selection deadline, price negotiation
process, item assessment by the presentation of the vendor and solution testing (Mandell,
1986).
7. Agreement: Service level agreement is part of this process.
8. Warranty and AMC details.
Part B
I am involved with procurement in my organization for the last six years. I shall brief about
an incidence where the solution passed the test stage of the evaluation process but failed
miserably when implemented for the organization as a whole. The solution was about the
online healthcare delivery system which contains several modules like patient care delivery

including patient booking, clinical decision making and different kinds of online reports as
well as for analytics. In our specification, we made it very clear the volume of the transaction
as well the database proposed size and the number of concurrent online users. The vendor
shortlisted, agreed to all the required specifications and during presentation mentioned the
names of units using their solution. During the testing and integration of modules, it was done
with small data size and a limited number of users and the vendor qualified. Within six
months of implementation, the response became very slow and virtually the system was not
able to withstand the 25% load. One mistake was committed by us during the evaluation
process was that we had not made onsite verification of the solution at one of the places
where the solution was installed. We called the vendor and he could not improve the
performance of the system. It was a failed solution. We invoked performance bank guarantee
to compensate for the monetary loss but the loss of time and efforts of the user department
could not be compensated.
References
Mandell, S. (1986). The Request for Proposal (RFP). Journal Of Medical Systems, 10(1), 31-
39. doi: 10.1007/bf00992948
Request for Proposal(RFP). (1993). JNCI Journal Of The National Cancer Institute, 85(11),
927-927. doi: 10.1093/jnci/85.11.927-a
Westfall, M. (2011). Using a Request for Proposal (RFP) to Select a Serials Vendor: The
University of Tennessee Experience. Serials Review, 37(2), 87-92. doi:
10.1016/j.serrev.2011.01.005
Westfall, M., Clarke, J., & Langendorfer, J. (2013). Selecting a Vendor: The Request for
Proposal (RFP) from Library and Vendor Perspectives. The Serials Librarian, 64(1-
4), 188-195. doi: 10.1080/0361526x.2013.761031