Requests for Proposals as a First Step to Successful Project Management: A Detailed Analysis of Three RFPs Matthew A. Poland PA 755 December 19, 2011 Introduction Requests for Proposals, or RFPs, are an integral beginning to project management for the complex information and communications technology (ICT) needs of a public non-profit agency. Well-written RFPs thoroughly describe what services or products an agency needs from an outside party, technical details of existing systems, how the bidding process will work and contractual guidelines as well as other details a company would need to know in submitting a proposal. A well-written RFP is a good start to a successful partnership with a vendor and customer agency and will help with ensuring sound management of the project from start to finish. Here, three different RFPs that request implementation of specific software solutions are analyzed in detail through objective criteria. First, strengths and weaknesses of each are detailed along with the implications for project implementation and management of the proposed projects. A cross-comparison of the three RFPs is also presented. Finally, recommendations are made for improving each RFP. Criteria for Analysis Essentially, if an RFP is not well-written, it will run the risk of not getting the agency what it needs and potentially also squander the time and resources of outside parties submitting proposals. “If it (an RFP) is not done correctly, it can produce no bids or bids that are a waste of your time.” (Reh, n.d.). Therefore, it is important to know what you need, what your current structure and resources are and how the solution might look as well as be able to convey this information clearly to outside parties. To establish an objective set of criteria to analyze each RFP, the basic components that will be expected are borrowed from Garton & McCulloch (2006, p. 40): 1) Executive Summary, 2) Description of Problem and Proposed Solution, 3) Key Business and Technical Requirements, 4) Project Phases and Milestones (Schedule), 5) Quality Assurance Requirements, 6) Budget, 7) Proposal Template (or outline). In addition to assessing the presence and quality of each of these sections, additional criteria will include whether or not the proposal invites collaborative problem solving as suggested by Gamble (2004) and information on how proposals will be evaluated (Reh, n.d.). 1 RFP Analysis #1 – City and County of San Francisco The first RFP to be analyzed was issued by the City and County of San Francisco’s (CCSF) Department of Public Works (DPW) for “Web-Based Utility Project Coordination Software” (CCSF, 2011). This RFP seeks to acquire a software solution to track utility projects throughout the city, using GIS, making it accessible by multiple City departments as well as the public. The proposed solution will be able to ensure that there are not construction conflicts, ensure joint construction opportunities are maximized and use public right-of-way (PROW) event tracking (CCSF, 2011). Strengths In this RFP, the Introduction section serves as the executive summary; although eight pages long, it clearly outlines the scope of the proposals sought. The needs for utility project management software are described and the specific goals to be met by a solution are described. The business and technical requirements are also very specific as the RFP contains several appendices that cover software requirements, DPW report requirements, emails that need to be generated from the system to staff, and data exchange requirements (CCSF, 2011). The RFP contains diagrams for how utility projects within the DPW are planned and carried out, the language used, etc., making an understanding of the department’s needs easier to grasp. The RFP also makes the evaluation process for proposals very clear with a simple scoring system based on seven weighted categories – Functionality, Support, Integration, Compatibility, Implementation / Staffing, Prior Experience and Corporate History / Stability (CCSF, 2011). The timeline of the RFP process is well-articulated and a detailed outline of what a proposal should include is provided. Weaknesses The first issue is that the problem DPW is looking to solve is not quite described, only the solution sought. It simply mentions that they are looking for an “enhanced” system over the one they have currently, which may make it difficult for a potential vendor to provide the best solution. Another issue is that the project timeline is oversimplified and milestones or phases of implementation are not identified. CCSF only notes that they expect the system to be fully operational within three months after the contract begins, then 30 days of training and all agencies using the software within 60 days 2 (CCSF, 2011). It does not offer a clear path for how the software will be implemented. Other missing pieces include a budget (although it asks for a “fee proposal” separate from the project proposal) and what quality assurance the project implementation should include. Finally, the RFP seems to only invite solutions that are on paper and not collaborative in nature. Implications for Project Implementation and Management First of all, despite the level of detail offered in the RFP, a vendor may not have a full understanding of the needs without some discussion after the proposal is made. This may lead to the wrong vendor being selected who writes the best first proposal on paper and is just a great salesperson that can’t actually deliver – a possible outcome from Lomanism (Stowers, 2011). Additionally, the lack of a detailed project timeline may lead to a project that is rushed in order to meet the unexplained deadlines. Lastly, not having a budget in the RFP makes providing estimates difficult and the proposals made could be way off the mark. Since a fairly tight timeline is expected, this may require a lot of resources spent in a small amount of time. The combination of no project timeline and no budget would make planning very difficult. However, the clear outline for a proposal and plethora of technical detail balances this a bit and makes it more likely to lead to a thorough project proposal, which is key to successful project management (Garton & McCulloch, 2006). Recommendations for improvement to this RFP are reviewed later in this paper, following discussion of the other two RFPs. RFP Analysis #2 – Kirkland Police Department et al. The second analysis for this paper was conducted on an RFP issued jointly by the police departments of Kirkland, Bothell, Medina, Lake Forest, Clyde Hill and Bellevue – all neighboring cities in King County, WA. The RFP is seeking proposals for public safety software that will be used jointly by all six cities and will primarily provide computer-aided dispatch (CAD), mobile reporting and records management for the six police departments who already share certain public safety services (City of Kirkland et al., 2002). Additional requirements and current software of the respective cities are covered in the RFP and the 3 authors note that a single vendor is desired to meet all of the needs although they acknowledge that this outcome may not be feasible (City of Kirkland et al., 2002). Strengths The Cities in this RFP provide a very detailed picture of what they are looking for. They have an executive summary, more or less, which describes the overall project and the RFP does clearly outline the problems each city has with their current system(s). The background on each city provides a lot of information on what each city’s needs are for the proposed solution. In addition, the priority items for the overall system are articulated. This RFP is also very lucid on what is seen as the proposed solution in an overarching public safety system; albeit lacking detail on how the systems will be interconnected. The business and technical requirements are listed in detail, including sections on the General System Requirements, CAD, Connectivity to ACCESS (system for accessing state and national crime databases), Police Records Management System, Field Report Writing, Crime Analysis and several other areas. They note that proposed solutions can include a system for Fire Records, but that the Cities will most likely continue to use the existing system (City of Kirkland et al., 2002). A potential vendor would most likely feel well informed on the requirements from reading this RFP. The RFP also clearly identifies the project phases and the criteria that will be used to select a vendor. Instead of a scoring system, such as used by CCSF (2011), they provide a list of selection criteria including the priorities in the solution for the Cities. Overall, the RFP is very complete, also including a very detailed proposal template (not just an outline) with a large number of questions to be answered by the proposer. Weaknesses While this RFP seems very complete overall, the City of Kirkland et al. (2002) RFP does not specify what quality assurance they will require for the project. This could make it difficult for a vendor to plan for how to budget for ensuring quality in the technical implementation. In addition, there is no overall budget guidelines in this RFP – instead the RFP indicates that costs need to be included in the proposal but the budget will be negotiated once potential vendors are identified. Without budget guidelines, proposers may not be able to provide reasonable cost estimates. 4 Implications for Project Implementation and Management While overall this is a well written and thorough RFP, it appears to be an extremely complex project; multiple cities with a swath of different systems at varying levels of complexity are requesting a system to unite them all. McNabb (2007) documents many examples of failed IT projects for a number of reasons, one of them being complexity. With six different municipalities, six different governance structures and all with their own (mostly) independent IT systems, this project seems to have a high likelihood of failure. On the other hand, this RFP seems to have some room for collaborative problem solving. The Cities ask for demonstrations and discussions from two or more vendors as part of the RFP process. This could lead to better solutions than if the Cities were simply to make decisions from solutions presented on paper alone. Again, recommendations for improving this and the other two RFPs will be presented at the end. RFP Analysis #3 – Total Action Against Poverty (TAP) This RFP is seeking client management software for Total Action Against Poverty (TAP), a community action agency with a number of social services provided in Virginia. Among other things, TAP wishes the new software to determine client eligibility, store intake information, track clients, assist with case management and generate various reports (TAP, 2006). This would be an upgrade from their current system based in Access. Strengths Although relatively few, this RFP has some strengths. The RFP lists the business needs for the client management software and requirements that need to be met. There is a very clear description of the various services provided by TAP and the ways the software will be used. In addition, the RFP has the criteria by which the proposals will be judged and an outline for items that should be included in the proposal. Finally, it has a schedule for the RFP process and very simple project timeline. These are all things that help a potential proposer get an understanding of the needs. Weaknesses Unfortunately, the weaknesses of this RFP far outweigh the strengths. It is lacking in almost all of the critical RFP criteria set forth in the beginning of this paper including an executive 5 summary, problem and proposed solution, project phases, budget and quality assurance requirements. While the business requirements are spelled out, any technical detail is grossly lacking. Even the business requirements seem to just be a vague and disorganized list of what will be tracked or inputted to the system, almost in a raw, brainstormed fashion. The reporting is the only thing described as what the system is expected to produce. Implications for Project Implementation and Management Obviously, the long list of weaknesses would make for a tenuous project without further discussion and guidance on the project. This does appear to be a relatively simple project though and a company providing standard client management software may not need more detail than what is already provided. Furthermore, the RFP does call for product demonstrations, which could lend itself to discussion and perhaps collaborative problemsolving. On its own, however, this RFP is not well-aligned with a successful proposal and project. Cross-Comparison of all Three RFPs While the strongest RFP based on the criteria set forth was written by the City of Kirkland et al. (2002), the CCSF RFP (2011) was also strong and the TAP RFP was a distant 3rd. The CCSF RFP did not contain evidence that the City planned to collaboratively solve the problem as suggested by Gamble (2004) while the City of Kirkland did. An advantage the CCSF proposal had over the City of Kirkland was a much more straightforward scoring system for proposals; ensuring fairness of the process is an important aspect for government agencies in particular. In comparison to the other two, the TAP RFP lacked a lot of detail and information about the problem and proposed solution. However, both the CCSF and TAP RFPs seemed to have a higher likelihood of resulting in a successful project than the City of Kirkland RFP. The length of the RFP proved to be an indicator of its strength – both the CCSF and City of Kirkland RFPs were over 40 pages while the TAP RFP was a sparsely used 12 pages. Some of these pages in the longer RFPs were used to discuss contractual requirements for the government agencies, which would not be relevant to the TAP organization. Overall though, it seems that in order to provide enough detail to solicit successful proposals, a certain volume of information about the scope of the project is needed in 6 the RFP. While the longer RFPs likely make writing proposals more difficult and time-consuming for vendors, the RFP process and issuing entity most likely benefits as a result. One critical element that was missing from all three RFPs was a budget. While they all asked for vendors to submit cost estimates, there was no concept of available budget given in the RFPs, which could lead to proposals that are way off the mark financially. While the CCSF RFP made it clear that the cost estimate was considered separately from the proposal itself, the other two gave no indication how the cost estimate would play into the initial decision making. They only mention that the costs will be negotiated with the vendors with the best proposals. Recommendations for Improvement City and County of San Francisco – The Department of Public Works would likely find a better solution for its needs if more about the problem was described in the RFP and more of a collaborative problemsolving process was offered. Perhaps if the top three scoring proposals were invited to present and discuss their solution, it would enhance the RFP process and lead to a smoother project implementation phase. In addition, if an estimated budget was provided by CCSF, it would give vendors an idea of how to budget their costs in their proposals, saving time and energy for both sides. Finally, the RFP contains little about the planned phases of the project and more detail on this would help vendors better understand the constructs under which they would be working. City of Kirkland et al. – This RFP could benefit from several changes – primarily a simplification of the project itself. Six cities with different needs and structure looking for a joint system to be installed in every location simultaneously makes for a massive project scope and is bound for failure. Instead, one of the bigger cities such as Kirkland or Bellevue should implement the system first and add each city one at a time, in phases. This way, the project can be broken into logical and achievable steps. With six cities dictating the requirements of one project, “requirements creep” – constantly changing demands of the project, is bound to sink the entire ship. In addition, more detail on quality assurance and a budget should be included in order to help proposers make accurate cost estimates. 7 Total Action Against Poverty – TAP’s RFP seems to be missing a lot of detail and could benefit from not only a more complete description of their technical needs, but also better organization of the business needs. A project timeline or description of the phases would make the schedule more clear as well. Like the others, it also needs to give an idea of the budget involved. All – An easy way to not only manage proposals, but also to provide a template for their content and organization is to use an online portal for submission of proposals such as Total Grant Solution (Tekmeca, 2011). This site and others like it allow agencies to provide the template for an RFP, require answers for certain questions/sections and have built-in cost calculators for budgeting. It can make the RFP process more efficient and transparent. Conclusions Because two of the RFPs analyzed here were from public agencies and the other from a non-profit, they may not be directly comparable. However, some common key elements to RFPs were missing from all of them such as budgets and project phases. In addition, TAP’s RFP suffered from an overall lack of detail, which is not conducive to project management despite the seemingly simple nature of the project. Even the more detailed public agency RFPs stand to benefit from improved RFP processes and simplified project scope. Whether from a non-profit, for-profit or public agency, a well-written RFP is the first step in successful project management in partnership with an outside vendor. 8 References: City and County of San Francisco. (2011). Request for Proposals For a Web-Based Utility Project Coordination Software. Retrieved December 16, 2011 from http://bsm.sfdpw.org/ebd/5yearplanrfp/RFP5YearPlan3-31-11.pdf City of Kirkland, et al. (2002). Request for Proposal for the Purchase of Comprehensive Public Safety Software Including Computer-Aided Dispatch, Mobile Reporting, Records Management and Related Modules. Retrieved December 16, 2011 from https://ilearn.sfsu.edu/course/view.php?id=3007 Garton , C. & McCulloch, E. (2006). Fundamentals of Technology Project Management. Lewisville: MC Press. McNabb, D.E. (2007). Knowledge Management in the Public Sector: A Blueprint for Innovation in Government. New York: M.E. Sharpe, Inc. Gamble, R.H. (2004). Outsourcing Essential: Perfecting the RFP. Retrieved December 17, 2011 from http://www.outsourcing.com/content.asp?page=01b/other/oe/q204/perfecting.html&nonav=true Reh, F. J. (n.d.). How to Write an RFP. Retrieved December 17, 2011 from http://management.about.com/od/money/ht/WriteRFP.htm Stowers, G. (2011). Introduction to Project Management. (PowerPoint presentation). San Francisco State University: San Francisco, CA. Total Action Against Poverty. (2006). Total Action Against Poverty Request for Proposals Client Management Software. Retrieved December 16, 2011 from https://ilearn.sfsu.edu/course/view.php?id=3007 Tekmeca, Inc. (2010). Total Grant Solution. Retrieved December 17, 2011 from http://www.totalgrantsolution.org/ 9