The RFP: How to Manage the Process Bob Yecke Assistant Director, University Unions University of Michigan Ann Arbor

Use the Right Tool Request for Information (RFI) Request for Quotation (RFQ) Request for Proposal (RFP)

When to Use the RFP Multiple suppliers can provide the same solution You seek to determine the best value of the supplier’s solutions Products for the project can not be clearly specified Lowest pricing is not the determining criterion for awarding the contract Final pricing structure is negotiated with the supplier Porter-Roth, 2002, p. 2

Use to Secure the Following Services: Food Service operations Retail operations (bookstore, travel agency, banking service, etc.) Point of sale systems Consultant services

Form the RFP Committee Select individuals appropriate to the needs of the RFP Orient the committee as to their roles and responsibilities

Establish the Timeline ***CRITICAL*** Don’t underestimate the amount of time it will take to complete the process Take into consideration your campus calendar Strive to ensure that service to the campus will be seamless

Sample RFP Timeline WeekTask 1Define the need 2Get approval to proceed 3-4Select/orient RFP committee 5Develop mailing list 6-7Write the RFP 8Mail invitation to pre-proposal meeting 10RFP pre-proposal meeting 11Questions due from prospective supplier 11Answers sent to prospective supplier 13Proposals due 14-15Analyze proposals 17On-campus presentations 18-19Reference checks/Site visits 20Selection of preferred supplier 21-25Negotiate contract 30Approve final construction documents 34Last day of operation for current supplier 35Current occupant move out 36-44New Supplier construction 45New Supplier open for business Adjust to fit project requirements Obtain Committee buy in to the timeline Monitor progress periodically Adjust as required

Develop the RFP Document ***CRITICAL*** Work with your Procurement office to develop the RFP Is there institutional language that must be included? Is there a boilerplate RFP that can be used?

Sections of the RFP 1) Introduction –Define who, what, where, when

Sections of the RFP 2) Operating Standards –Define your expectations

3) Financial –Are you seeking the highest return to the college union or the lowest prices for your customers? –Define who is responsible for what initial costs –Define ongoing obligations Sections of the RFP

4) Proposal requirements & award criteria –Define how the proposal should be structured –Define the criteria that will be used to analyze the proposal

Sections of the RFP 5) Attachments –Sample lease or agreement –Historical data –Long range planning documents –Campus & building maps

The Letter of Invitation Develop your invitation mailing list Advertise in your local newspaper Pre-proposal meeting: –Mandatory or Optional Keep it simple Request an RSVP Establish a web site with pertinent information

The Pre-proposal Meeting ***CRITICAL*** Face-to-face communication Find out who is really interested Review highlights of information packet Tour the available space –Don’t forget to coordinate the tour with the current occupant! Allows you to tell prospective suppliers your story

The Pre-proposal Meeting All questions and answers should be shared with the group both verbally and in writing All questions after the pre-proposal meeting should be submitted in writing and answers sent to all attendees The more information you can provide to prospective suppliers, the better they can respond

Reviewing the Proposals Proposals should be sent directly to the Procurement office Evaluate the proposals against the pre-established criteria Operational Expertise Services (i.e. menu) Customer Needs Financial Proposal Advertising/Marketing/Merchandising Project Personnel Presented Approach Creativity/Flexibility

Reviewing the Proposals Presentations by finalists Reference checks Site visits Write justification for selected supplier

Negotiate the Lease Legal agreement between supplier and institution Partner with Procurement Seek assistance and input –Risk Management –Legal Counsel –Health & Safety Signing authority Distribution of copies

Road to Opening Approval of construction documents Move out of current occupant Construction Meet with key operating representatives The GRAND opening

We have only just begun… Managing the Lease A new member of your team Creating a harmonious working relationship – the Partnership Ongoing communication Willingness to share information Desire for all parties to succeed

Final Questions and Comments

Bob Yecke Additional Information and Reference Materials: Website: umich.edu/~yecker Sample Pre-proposal letter Sample RFP Sample Lease RFP article: March 2004 ACUI Bulletin