Lifecycle To Winning That RFP – Part 2

This is the second of my three blog series that describe the essential elements to winning that Request for Proposal (RFP) or Request for Quotation (RFQ).  I’ve boiled down the lifecycle to winning a RFP or RFQ into three main phases: Identify, Qualify and Respond.  

The first blog installment described challenges and suggestions to identify RFP or RFQ solicitations.  This second installment addresses the question – “But is that RFP or RFQ solicitation you found really for you?”

Qualify

There’s a growing number of contract opportunities across all disciplines such as: Information Technology, construction, education, transportation, training, management consulting, landscaping, janitorial, marketing and all sorts of commodities.  So, when you find out about a juicy contract opportunity, you may be tempted to jump right in and crank out a response.

Problem is, not all contract opportunities you receive are meant for you.  Just because a RFP calls for a service or product you provide, searching in the darkdon’t think your organization is the best candidate.  Unless you can figure out a way to assess your chances of winning those opportunities, you will waste a lot of time, money and resources responding to proposal solicitations you will never win.

Avoid searching for the right RFP or RFQ opportunity in the dark.  You need to shine a light that shines way beyond the obvious question of whether you can satisfy the scope of work. For example, consider these three questions in terms of your organization’s: goals/objectives, culture, size, industry, etc.

  • What is the real purpose of the RFP or RFQ solicitation? Does the contractor really want your business or is s/he just price checking to ensure that a preferred vendor’s offer is competitively priced?
  • How important is relative experience in the industry represented by the RFP or RFQ contractor? I’m not talking about the industry inferred by the scope of work requirements but rather the organization that issued the solicitation.
  • Can the “size” of the project be perceived to outweigh the “size” of your organization in the eyes of the RFP or RFQ contractor’s vendor response evaluation person or committee?

There are many more considerations, some of which I described further in another blog post.  You will certainly want to tailor your scrutiny to fit your organization. But please remember this one important fact.  Only when you understand the complete story behind that RFP or RFQ solicitation will you be able to decide if it is the right one for you.

OK, now that you have selected the right RFP or RFQ that truly fits your business, it’s time to craft a winning response.  I’ll talk about that in my next blog post.


Want to know more? Can’t wait for my next blog entry on the lifecycle to winning that RFP response?  Then check out this link to my website that describes my services around this need.

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Lifecycle To Winning That RFP – Part 1

Winning that Request for Proposal or Quotation (RFP or RFQ) is not an easy thing to do.  It’s a large numbers game where you have to carefully select the right opportunity then figure out how to get your message across in a way that gives your organization the most vendor evaluation scoring points.

To help make things a bit easier, I’ve boiled down the lifecycle to winning a RFP or RFQ into three main phases: Identify, Qualify and Respond.  I’ll talk a little about each in three separate blog posts.

This first installment concerns finding RFP or RFQ solicitations.

Identify

papers flyingLike potholes on the road, there are plenty of Request for Proposal or Quotation (RFP or RFQ) opportunities out there vying for your attention.  A casual search shows a growing number of contract opportunities across all disciplines such as: Information Technology, construction, education, transportation, training, management consulting, landscaping, janitorial, marketing, all sorts of commodities, etc.  The Internet is filled with search engine sites (BidsUSA and FindRFP to name a few) to notify you of RFP or RFQ opportunities that fit the conditions you specify. Be aware that some of these search services are paid subscription based.

For state and federal RFP opportunities, you can save a ton of money by registering your company on various state and federal government contracting sites.  There, you will get automated notifications of solicitations based on the industry classification codes you provide.  Registering your business with government contracting sites can be a complex, time consuming pain in the butt process with plenty of bureaucratic check points and hoops to jump through.  But in the end, it is worth the effort. You may even discover an opportunity to develop a one-on-one relationship with a government contracting agent, which may prove helpful to find opportunities that don’t require a published solicitation.

But is that RFP or RFQ solicitation you found really for you?  I’ll talk about that in my next blog post.  


Want to know more? Can’t wait for my next blog entry on the lifecycle to winning that RFP?  Then check out this link to my website that describes my services around this need.

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Does That RFP Smell Phishy?

phishing-attack

 

How do you know that RFP solicitation you just received is real?

You don’t, unless you know what to look for and are aware of the threat.

 

 

For clients, I monitor and evaluate RFP/RFQ opportunities from various state, federal and corporate agencies across the US and just received this message from the Maryland State Dept of Information Technology.


Subject: Message to Vendors regarding fraudulent emails

State of Maryland has been made aware of a new phishing scam that targets the community of vendors doing business with the State of Maryland. A phishing attack occurs when a fraudster tries to trick you into sharing personal information online.


 

In Todd R. Weiss’ online article “$100M Email Phishing Case Offers Lessons Learned for IT,” Neil Wynne, an IT security analyst with Gartner warns that “business email attacks have been occurring with significantly higher frequency in recent years.”

Have you received phishing email?  If your answer is no, then you don’t know what the threat looks like.  It is safe to say that EVERYONE on this planet who is Internet connected has received one of these email based IEDs (or Internet Explosive Devices as I like to call them).  So what do you do when you receive one of these?

The answer varies with your situation but there are some common actions and things to know, consider and do.  For example . . .

In it’s email warning, Maryland State Dept of Information Technology helped its existing and potential vendors/suppliers by doing two things:


First was to educate by saying:

“The scam attempts to lure vendors into taking certain actions, including visiting a fraudulent website to input personal information and/or to download malicious programs. Other messages request that the vendor remit payments and provide remittance information within the body of the message in the form of a routing and account number.

The State of Maryland does not request payment or ask its vendors to provide personal information via email.”

The second was to create a call to action with the following statement:

“If you receive an email similar to the ones below, don’t reply. You should delete the message immediately. Do not open attachments, click links contained in the email, or provide any data to the websites mentioned or linked. Refrain from remitting payment to bank account information provided.

Update your subscriptions, modify your password or email address, or stop subscriptions at any time on your Subscriber Preferences Page.”


 

Maryland State Dept of Information Technology’s approach is good! But the one BIG thing I did not like about their email warning is that it had links.  That immediately raises a red flag in my mind.

What I have more commonly seen is a statement that says something like feel free to visit the institution’s website or call if you have any questions. No links or phone numbers are provided in those messages. Given the nature of the situation, rather than rely on email links, I think it is understandable that you should use the contact information already on hand to establish any desired communications to the institution.  After all, how do you know that someone didn’t send out a fake message pretending to be the Maryland State Dept of Information Technology? Yea, yea, I know this can get real squirly. So what is the solution?

In Todd’s article we read that a key tool to fighting phishing attacks “is a secure email gateway” along with a host of other rather complicated security technology solutions.  But reliance just on technology is not the ideal solution here, especially for budget wary or non-tech savvy small businesses.   Also, I take Wynne’s statement about how “attackers are easily bypassing these traditional prevention mechanisms,” one step further to say that attackers (especially those who are well financed) will continually exploit the inherent insecurity in our Internet that was originally meant to be open to all.  For example, did you ever wonder why Microsoft is always sending out Windows security updates and patches?  Bottom line here is you need more than technology to fight this problem.

Ultimately, the solution lies not with technology alone but in combination with human beings recognizing suspicious emails and deciding what should be done.   I think Gartner’s Neil Wynne agrees when he said “ultimately, the fact remains that human beings are the most vulnerable point of any information system.”

Whatever you do, the last line of defense against phishing attacks will always be employees who must receive the latest training to help them recognize and respond to phishing attacks and encouragement to remain vigilant or else as Rob Enderle, principal analyst at research firm Enderle Group warns “over time, people tend to start thinking it will never happen to them…”

phishing-attack 2

 

So, do you know when someone is phishing for your confidential information?

Check this image to learn the signs or (if you don’t trust my links) just Google “stop phishing attacks.”

Use EXTREME CAUTION When Giving Gifts to Government Contract Officials and Clients

IMG_1104Here are some important words that bears repeating about gifts to government clients.  Business owners, especially new ones who have not dealt with government clients before but now want to express their honest gratitude for that first or second government contract award, should pay close attention to this warning from William Curry, a government contracting expert, trainer and author of the book- Contracting for Services in State and Local Government Agencies, Second Edition.


 

Small businesses may have established a practice of sending thank you presents to their private sector customers. They should, however, reconsider this tradition when dealing with government agencies.

While researching contracting fraud cases for my book, I came across a newspaper article with a dateline naming a city where I previously lived. Upon reading the story, I was stunned to learn that my friend’s small business owner son was going to prison for giving gifts to government officials.

Did you know that the value of gifts that can be given to federal officials is surprisingly low at $20 per gift and no more than $50 per year from the same source? The limits vary greatly between the various state and local government agencies.

You may also be surprised to learn that the FBI traditionally has jurisdiction over procurement fraud cases for state and local governments as well as for federal agencies. When it comes to investigating contracting corruption, the FBI is a formidable institution. My recommendation: Don’t give gifts of any value to your government customers.

 

Once Upon A Time, There Was This RFP and . . .

Before you respond to a RFP/RFQ solicitation you should first know its complete story. Only then will you be able to answer the question- do you have a good chance of being selected?  OK, that’s obvious.

But what’s not so clear is knowing what goes into qualifying a RFP/RFQ opportunity as something worthy to bet your resources.

Last year, a small business owner put in a lot of time and effort to respond to thirty RFP/RFQ vendor solicitations- and won zero.  Turns out she responded to the wrong opportunities.  Even though her business could satisfy the requirements, she didn’t know the “story” behind those thirty RFPs.  If she had, she would never have responded.  Instead, she would have found other RFP/RFQ opportunities whose complete story is more compatible to her organization.

More importantly, she must realize that the real story often times has nothing to do with the RFP/RFQ’s scope of work requirements.  The story usually includes hidden themes that can outweigh scope of work requirements.

telling-a-story-1024x790So, gather your team and explore the theme(s) behind the RFP/RFQ solicitation’s story when it comes your way.  Your assessment should go way beyond the obvious question of whether you can satisfy the scope of work.  For example, consider how compatible these potential story themes are to your organization in terms of: goals/objectives, culture, size, industry, etc.

  1. What is the real purpose of the solicitation? Does the contractor really want your business or is s/he just price checking to ensure that a preferred vendor’s offer is competitively priced?
  2. How important is relative experience in the industry represented by the RFP/RFQ contractor? I’m not talking about the industry inferred by the scope of work requirements but rather the organization that issued the solicitation.
  3. Can the “size” of the project be perceived to outweigh the “size” of your organization in the eyes of the RFP/RFQ contractor’s vendor response evaluation person or committee?
  4. Given the apparent complexity of the RFP/RFQ opportunity, do you even want to deal with the organization that issued the solicitation?
  5. Does the overall scope of work seem like an uncoordinated/impractical wish list that is better off divided into more reasonable parcels?
  6. How does the projected timing of the work to be done compare to the contractor’s organizational budget cycle?

I can go on and on and on, but you get the idea.

So, what RFP/RFQ solicitation story themes can you think of?  Send your themes to me and I will share with everyone.

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RFx Terminology – It’s Back-To-Basics

So what is your organization responding to?  Is it a RFP, RFQ, IFB . . . what’s the difference anyway and how does it affect your sales strategy?

img_0841I’ve seen these terms tossed about like multicolor balloons on New Year’s Eve!  But in the contracting world, each balloon is different.  They signal the solicitor’s varied intentions, which can affect your decision to respond to the opportunity in question.  Unfortunately, these terms are not always used consistently and can lead to confusion.

To see how other experts define RFx terminology, I did a quick Internet scan. Below is a high level summary of what I found and my personal comments on each. Take a look but don’t consider them the gospel for RFx terminology.  Instead, use this information as part of your overall research on the solicitation opportunity.  And remember, no matter what they call it, the real meanings will be found in the solicitation details such as: purpose, scope of work, instructions, terms and conditions and vendor selection criteria/process.

Request for Information (RFI) – These are open solicitations that seek broad information and understanding about a problem or requirement. RFIs are used to gather industry data, intelligence and vendor capabilities to help decide what step to take next before embarking on more formal and specific solicitations.  RFI’s are, therefore, seldom the final vendor selection stage, but instead tend to establish the beach head that paves the way for other solicitation types described below.

Bottom line here is don’t expect this to result in a contract, at least not yet.  Instead, think of the RFI as a golden opportunity to introduce your organization to the buyer and contract manager. You will most likely have to respond to another solicitation to win the contract. That’s more work but it may be worth the effort in terms of getting positive exposure and time to propose the best solution.

Request for Quotation (RFQ) is a solicitation opportunity for potential vendors/suppliers to communicate to the buyer proposed costs for a defined set of products and services. I’ve read some industry sources that say the quote you submit is not a binding offer. But I have come across RFQs that included terms and conditions that effectively bind your firm to the price you submitted and confirmed with your signature as an official person authorized to commit your firm. So read the nitty-gritty details!

An RFQ usually contains a specific detailed list or description along with related parameters of the service and or items to be acquired by the purchasing organization. Bottom line, the buyer knows what s/he wants and is most likely doing a price comparison. This is a technique sometimes used to ensure that the incumbent vendor (if there is one) doesn’t overcharge for his/her services or products. The lowest priced vendor usually prevails here.

Invitation for Bid (IFB)– Similar to a RFQ, this solicitation is a method to gather competitive pricing for a specifically defined need and the decision is generally based on price not ideas. I’ve read IFBs are used for procurements greater than $100,000 in value but not all procurement departments follow that rule. For example, we recently won a Texas IFB that totaled about $20,000.

Request for Proposal (RFP) is a solicitation sent to potential suppliers with whom a creative relationship or partnership is considered critical to success. Typically, the buyer knows what s/he wants but is not sure on the approach to get there.  So, the RFP asks competing vendors to state their proposed strategy to achieve the buyer’s goals and objectives.  This also gives the buyer an opportunity to see how their potential vendor partner thinks and to get a glimpse into how the relationship will take shape. In fact, the creativity and innovation that vendors include in their proposals can become a real competitive advantage as the buyer is looking to see if what the vendor is thinking is aligned to the buyer’s needs and organizational culture.  Prior to the RFP due date, I’ve seen and participated in a lot of back and forth with the buying organization to better understand the true intent of the buyer/contracting officer and establish a relationship.

A word of caution here, don’t simply dump boilerplate information, brochures and fancy advertisements in your RFP response to describe your approach.  This is not a high school or college lab assignment where the professor grades your paper based on its weight.   If you do, the buyer and contracting officer will probably knock points off your evaluation score . . . I would.

Having been on the receiving end of vendor RFP responses, nothing angers me more than having to wade through a ton of paper and pamphlets that do not support their approach and strategy.  Nowadays, contracting officers are putting statement into their RFP solicitations that discourages this sort of shot gun approach.  For example, a recent Florida RFP solicitation included the following discreet statement “The Department discourages lengthy Proposals.”  I even saw this statement in a California solicitation, “Due to limited storage space, the proposal package should be prepared using the least expensive method (i.e. cover page with staple in upper left-hand corner, no fancy bindings).” A major university in California went even further saying, “Elaborate bids in the form of brochures or other presentations beyond that necessary to present a complete and effective proposal are not desired.”  And for those who can’t read between the lines, that university went on to say “The bidders ability to follow the bid preparation instructions set forth in this solicitation will be considered an indicator of the bidder’s ability to follow instructions should they receive a contract award.” Get the hint?

Needless to say, if done right, RFPs take more time to: clearly define an aligned and prioritized need set; communicate that need to the competing vendors and allow them sufficient time to formulate an intelligent and innovative response; assess and select the best vendor; and conclude final negotiations.  Effective RFPs typically reflect the strategy and short/long term business objectives and provide insight upon which suppliers can use to enhance their proposals and shine brightly in the buyer’s eyes.

Request for Tender (RFT) is similar to the RFQ where the: work or commodity to be delivered is clearly defined/specified; price carries a high evaluation factor and there is not much room or need for alternative strategies or problem solving techniques. You may read that RFTs tend to be used more in the public sector but I’ve seen more solicitations labeled as RFQs than RFTs in that space.

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There are several more types of solicitations but we have covered the basics. Below is a list of the solicitation types I know about. Drop me a line if you find any others.

RFS – request for services
RFQ – request for quotation or request for qualifications
RFP – request for proposal
RFO – request for offers
RFN – request for negotiation
RFI – request for information
RFD – request for documentation
RFA – request for applications
ITV – invitation to vendors
ITT – invitation to tender
IFB – invitation for bids
EOI – expression of interest

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