Skillfully creating a request for proposal can ensure the success or failure of the resulting solution. If the specified requirements are too vague, the bidder may not design and implement an adequate solution for the problem. If the requirements are too detailed and restrictive, the bidders’ innovation may be limited.
The RFP process begins with drafting a request for proposal. Bidders review the solicitation and submit suggestions for improvement.
Instruction:
Section 1:
1. Provide an RFP outline.
Section 2:
1. What kinds of projects would you recommend a fixed-priced contract be used?
2. What kind of project would you recommend a cost-plus contract be used?
3. Provide an example and multiple reasons why while referencing elements of Request for Proposal (RFP).
Sample Solution
Section 1: RFP Outline
• Introduction
• Background information
• Scope of work/Project description
• Timeline and deliverables
• Proposed payment structure (fixed-price or cost-plus)
• Evaluation criteria for selecting bidders
• Acceptable forms 0f bid submission
• Instruction for submitting a proposal
• Requested contact information from bidders
Sample Solution
Section 1: RFP Outline
• Introduction
• Background information
• Scope of work/Project description
• Timeline and deliverables
• Proposed payment structure (fixed-price or cost-plus)
• Evaluation criteria for selecting bidders
• Acceptable forms 0f bid submission
• Instruction for submitting a proposal
• Requested contact information from bidders
Section 2: Fixed Price Contract Recommendations
A fixed-price contract is recommended when the project scope and its corresponding requirements are well defined. It helps to limit project costs, decrease risks, and establish accountability between parties. An example could be a website design project where there is an agreement that the developer will create a specified number of webpages with certain design elements within a set timeline in exchange for payment at the end of the project. The elements of RFP applicable to this situation would include specifics on the design components to be included such as page layout, navigation bars, color schemes etc., deadlines to complete each phase and overall completion date, evaluation criteria based on customer satisfaction results etc.
Cost Plus Contract Recommendations
On the other hand, when precise specifications cannot be provided upfront due to uncertain conditions or ever-changing requirements during development process then it may be best opt for cost plus type contract since it provides more flexibility allows bidder adjust their fees accordingly without worrying about potential losses incurred by unforeseen circumstances. For example if company wants build application but doesn’t know exact requirements yet then they can hire contractor with cost plus contract who charge hourly rate instead having them sign fixed price one which might not accurately reflect true value their services due unexpected delays caused difficulty understanding customer’s vision thus leading greater expenses than originally anticipated.
