Many businesses and organizations use a request-for-proposal (RFP) format to receive bids for work or goods that they wish to purchase. By using this proven RFP template below, you can become more successful at proposal writing and win more bids.
Because RFP writing can be challenging and time-consuming, many businesses either don't participate in the bid process or they don't write bids that win. Proposal writing is a combination of science and art: you need to follow guidelines or a template (the science) and you need to write a compelling and persuasive bid (the art).
First, recognize that there are a number of different methods used for bids or tenders: request for expressions of interest (RFEIP), request for proposal (RFP), request for qualification (RFQ), request for information (RFI), and request for technical specifications (RFTS). These requests are typically used by all levels of government; hospitals; schools, universities and colleges; and a number of organizations (typically larger organizations such as banking institutions, utility companies, and so on). Often the value of the 'buy' dictates whether or not the request for proposal or bid process will be used (for example, no one is putting out a request for proposal for a roll of toilet paper, but if the request is to supply the whole hospital with toilet paper, it is likely to be purchased through the RFP process).
Then, before you begin writing your response to the RFP, review the request for proposal and ensure that you want to bid for it; I've known clients that have got all the way to the end of proposal writing and then decided the RFP wasn't a good fit for them or that the bid was too big, too small, not right. Develop your own bid or no-bid criteria and assess each RFP or other requests (RFEIP, RFQ, RFI, RFTS) before you begin the work of writing proposals.
This RFP template provides an outline of how to write a proposal: (Note: this is for a common type of RFP; there are many variations)
The typical bid package or documents will include:
A project or goods overview or summary, including specifications, quantity, time frame and/or other details required for the proposal; A due date for the bid and for the work to be done or the goods delivered; If applicable, the vendors meeting schedule (usually provided if the specifications are complex and need to be discussed); Buyer's contact name, phone number, address and/or email address for delivery of the bid; Attachments as necessary: which often include payment terms and conditions, legal and insurance requirements, other related information; The package will also include management and technical requirements and expectations for the bid; The bid documents should also include a contact if questions are allowed (recognize that most times, questions and answers are posted for all respondents to see - be careful what you 'give away' to your competitors in your questions).
Your proposal needs to include:
Your Qualifications: Consider whether you have the necessary qualifications and experience for the proposal; if not, consider an alliance or partnership with another vendor or consider subcontracting parts of the bid. Make sure that with either scenario (partnership or subcontracting) that you control the service and the product: your reputation is on the line. In your qualifications, make sure you include a description of who will be working on the project and why your company is uniquely qualified to deliver the product. Provide individual or corporate resumes and biographies if appropriate and necessary. Your References: References should answer the question; Why should you get this bid? What is better and/or unique about your service and/or product - compared to your competition? Your references need to be carefully selected and you must contact those people you use as a reference in advance to ensure that they are willing to be your reference (I recommend asking for a reference (written if possible, plus contact information) well ahead of the need for one). Read the bid requirements carefully; some bids will limit the number and type of references you can provide. Try to use references for similar types of bids; if you do not have any, then ensure that you write the connection between your experience and the work you're bidding on (that is, what are transferable skills from your experiences). Your Solution: In this section, present your unique solution; the one that differentiates your proposal from others. Also, define your understanding of their request and how you plan to address their needs. Your service or product positioning must be clearly written. Make sure that your solution indicates to the buyer that you understand their problem, their market and that you can deliver the best solution. Your Price or Fee: Consider pricing strategies that are specific to your bid. The lowest price is not the one that wins - all the time. If you need to buy materials as soon as you are awarded the contract, write your bid to include progressive payments. You might want to show what the price includes, for example, 5 days on market survey design and launch; 5 days on survey tabulation and focus groups, etc. Your payment terms must be clearly identified and easy to understand (and not in conflict with any terms in the request for proposal). Build a cancellation clause into your bid: for acts above and beyond your control (earthquake, floods, fire, etc.) - have a lawyer review your clause and then use that as a standard clause on each proposal that you write. Build a price escalation clause for long term projects; you might want to tie the price escalation clause to inflation or to your projected cost increases. There are always administrative details to review; make sure you take the time to read them carefully and if you do not agree or cannot comply, then address the issue in your bid. Do not leave any sections or questions unanswered in your bid: you will score zero on that answer in the evaluation process (which usually 'marks' the answers in each section).
Once the bid or tender is awarded, and if you were not the winner, ask for a debrief or review: you want to find out why you didn't win the bid and you want to apply the lessons learned in the debrief on your next bid. Learning how to write an RFP, specifically how to write winning bids, becomes easier the more bids that you write. Once you've developed this RFP template into your own template for your business, you will find that writing proposals is faster, more effective and more successful. The goal is to write winning proposals.
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Not all sales come from RFPs, learn how to Improve Your Proposal Writing Skills with more proposal writing tips and techniques focused on the selling process.
Kris Bovay is the owner of Voice Marketing Inc., the business and marketing services company and owner of the small business resource website, http://www.more-for-small-business.com
Kris has more than 25 years experience in successfully managing and leading large, medium and small businesses; businesses that she has worked with have grown by more than 30% in sales in the first two years. Use Kris' experience to help you manage and lead your business. Copyright 2008 Voice Marketing Inc.
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