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Feb 6

Written by: Rich Campbell
2/6/2009 3:53 PM 

For the past several years, our policy has been to not respond to RFPs. The process is flawed and a complete waste of time and resources. We are confident in our ability to deliver quality work at a fair price. We want to work with clients who want to work with us. What's so wrong about that? Shouldn't it be that simple?

I love Joel Spolsky's definition of RFP:

RFP stands for "Request for Proposal." It's a request by a large company for a custom proposal from a small company. The small company works on the 200 page laser-printed proposal like mad for three weeks and Fedexes it in great expense and at the last minute, where it gets put in the trash because the large company has their favorite vendor who takes them on a helicopter to Atlantic City on junkets involving blackjack and strippers, and who is going to get the contract no matter what, but someone in purchasing for some unexplained reason, maybe he's bucking for a promotion is insisting that the proposal be opened up to "competitive bidding" and the small company has been chosen as a victim to write up a proposal that has no chance of being accepted just to make the process look a little bit less corrupt, and if you're a small company, I would recommend that you don't fall for it and don't spend any time responding to RFPs unless it's already understood that you're going to get the contract.

Don't get me wrong, RFPs are a great tool for companies performing "retroactive due-diligence" after first deciding on a vendor. They bring in a few more eager companies to submit proposals which they can then use to negotiate a lower price with the "chosen one." Nice.

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7 comment(s) so far...

Re: Should we respond to RFPs...?

Here! Here! I would add that RFPs tend to lack any real project scope and are usally grossly gernalizations of the project. If a client is serious about work with me, then they can seriously take the time to speak with me and flesh out what it is exactly they want. At that point I am more than happy to provide a REAL custom quote for the work.

I would love to hear more of the backstory on this blog post at some point.

By Stuart on   2/8/2009 8:41 AM

Re: Should we respond to RFPs...?

GREAT BLOG! In my lifetime, I have spent probly 500 hours on RFPs and honestly I can't remember one job we one. Now, to be honest, I am a hypocrit because I've put out RFP requests for the exact reason you mentioned - to leverage the RFPs against the "chosen one."

One tip I learned was to have a boiler-plate RFP response, e.g., company history, philosophies, etc. When the RFP comes in, you send them back immediately the RFP response, which is more like marketing collateral. The only reference to the actual project is the first page that states the name/company/project it is response to.

I worked once at a company where the CEO knew that RFP responses were a waste, and would claim that we wouldn't respond. But everytime one came in, he was so insecure, he would change his mind, and have everyone drop what they were doing. He as scared that maybe this time, the RFP process was legit.

The only way you have a chance at winning an RFP bid, is if you are the vendor who helped the company put the RFP together.

Now that I run my own company, it has actually worked out better when I respond, "I don't do RFPs." It actually peaks curiousity because companies think, "Wow, they're that good that they don't need our business?"

Once again, Kudos for posting the truth!!!

By Jim Zamichieli on   2/9/2009 9:00 AM

Re: Should we respond to RFPs...?

@Stuart I would love to share the backstory, but probably should not. The frustration comes from not following our own policy and spending the time on an RFP, only to remember why we had that policy in the first place.

By Rich Campbell on   2/9/2009 9:09 AM

Re: Should we respond to RFPs...?

@Jim - good advice about the boiler-plate respone. That's something we've done to some extent in the past and want to build upon going forward.

By Rich Campbell on   2/9/2009 9:11 AM

Re: Should we respond to RFPs...?

If your company's products and services are NOT a good match for the RFP, don't bother responding. If they ARE a good match, but it is an unsolicited RFP (meaning you did not have the chance to work with the buyer before receiving it), I recommend the following approach.

Inquire as to what are the most critical issues to address in the RFP and if there are any “must-haves” or showstoppers. Then prepare a simple one or two page response that addresses the critical issues. Attach this to an e-mail that documents your company's success on similar projects. Also include supporting materials that give your company additional credibility such as, your company's annual report, technical manuals, white papers, case studies and success stories.

I call this approach the "half-baked RFP” response. It has worked for me on more than one occasion, and we have won contracts in excess of $200,000, having spent less than 10% of the time it would've taken to complete the 150+ page RFP.

By Greg Johnson on   2/11/2009 12:27 PM

Re: Should we respond to RFPs...?

It all depends for us. We are often the preferred vendor, but since some of the organizations we work with have rules if a project exceeds a certain amount they have to put it out for bid they do. We have never won a completely random RFP so we let many of them go by now. The random ones, I don't spend much time on, we have our default marketing/proposal lingo and I'll add a one pager with information about their project and an estimate range. Since most people need a fixed price, if your range is reasonable and they like you they'll work on narrowing that. If they throw it out because it wasn't fixed, you would not have won anyways.

If you are going to play the RFP game you have to win it before you send in the proposal. You have to call the person who sent it out, get a meeting or a good phone call before hand to have an opportunity to show your value. Sometimes you can beat out the incumbent that way. If they don't have the time to meet with you before hand then you don't have the time to respond to their RFP.



By Ryan Doom on   2/18/2009 4:29 PM

Re: Should we respond to RFPs...?

What a great article and very refreshing to read as I roll up my sleeves to get stuck into yet another RFP.

We've started including a clause along the lines of:

"This proposal is submitted on the understanding that the vendor selection process is fair and equitable; that no vendor has yet been selected and that XXX has an equal chance of winning the business based on this submission and any associated documentation, calls and demonstrations related to this bid.

The information contained in this proposal is the property and copyright of XXXX . The proposal, ideas and suggestions are not to be shared with any other party who has also been asked to submit a proposal and is not to be used without the express permission of XXX."

Ian

By Ian Sampson on   5/14/2009 7:33 AM

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