How to Respond to an RFP

Between defining strategy and drafting content to coordinating resources and reviews, teams can easily invest days, weeks, months and even years in responding to an RFP. In fact, APMP reports that the average company responds to 162 RFPs a year. The average team spends 5,184 hours writing their RFP response, or proposal.

Fear not! This ebook is your trusty map through the RFP labyrinth. Forget scrambling in the dark; we will equip you with the strategies and tools you need to forge a proposal so powerful, it will leave your competition weeping into their spreadsheets.

Understanding the RFP Landscape

The effort companies invest in responding to RFPs underscores the importance of understanding its purpose as a business sales strategy and customer procurement vehicle.

What is an RFP?

An RFP (Request for Proposal) is a formal, open request for bids to complete a new project proposed by a government, agency or company. It’s basically a procurement vehicle; a pre-established process that allows organizations to acquire goods or services efficiently.

The RFP document outlines the issuing agent’s proposed project requirements. The RFP process secures bids from vendors. An RFP response is referred to as a proposal.

Is an RFP the same as a Tender?

While often used interchangeably, there are some distinct differences between an RFP and a Tender. A Tender, or Invitation to Tender (ITT) is also a formal, open request for bids to complete a new project proposed by a government, agency or company. The ITT document outlines the issuing agents proposed project requirements. The Tender process secures bids from vendors. An ITT response is referred to as a Tender Proposal or proposal.

Tenders are highly detailed with a well-defined scope and used to procure goods, services, or works, such as construction projects.

What other procurement vehicles are there?

There are other procurement vehicles you should be aware of, including RFQ, RFI, IDIQ and GWAC. These are also formal documents issued by an organization that is looking to procure goods, products, and services. All of these procurement vehicles outline requirements for an issuing agent, however:

This ebook focuses on your RFP response, or proposal, however, many of these best practices and tactics are easily applied to all of these procurement vehicles for impact.

Who Issues an RFP?

Any organization seeking to procure goods or services from external vendors can issue an RFP. Issuing agents include a wide range of entities, for example:

• Public Sector. Federal, state and local government agencies, schools, universities, non-profits, and research institutions
• Private Sector. Large corporations, small businesses, and industry associations

The specific issuing agent depends on the nature of the need or project. Oftentimes, a department or business unit within the organization is responsible for developing and managing the RFP in collaboration with procurement and legal teams. 

Who Responds to an RFP?

When it comes to seeking opportunities to provide goods and services, companies of all sizes and across all industries respond to RFPs. Responding to a specific RFP is a team effort, drawing resources from across your organization. Depending on the size and scope of the RFP, your proposal team will typically involve:

• Sales: Responsible for customer-centric perspective and win strategy
• Proposal Manager: Responsible for overall planning, budgeting, resource allocation, and timeline adherence.
• Proposal Coordinator: Responsible for proposal outlines and formatting, coordinating resources and content, including graphics, production and submission.
• Executive Sponsor: Responsible for approving and funding the pursuit, key strategy decisions, reviews and approval.
• Technical Lead: Responsible for technical requirements and solutions.
• Subject Matter Experts: Responsible for responding to specific requirements or sections in their speciality. For example, engineering and legal.
• Proposal Writer: Responsible for crafting the proposal narrative.

Depending on size and scope, other roles might be added, including Capture Manager, Cost Estimator and Production Manager.

Who reads your RFP response?

Who reads your proposal once it’s submitted? Who wields the power to turn your proposal into a project?

Meet the proposal review team:

• The Gatekeeper. Often an administrative assistant who screens your proposal for basic criteria such as eligibility and compliance.
• The Subject Matter Experts. Dive into the technical details, assessing your solution’s feasibility and how it aligns with their project requirements.
• The Evaluators. A diverse team responsible for scoring your proposal against predefined criteria. Might include procurement specialists and project managers.
• The Decision-Makers. Weigh all recommendations and choose the final winner. CEO’s, executives, or board members fall into this category.

Based on the evaluation, the committee shortlists the most qualified bidders.

Further discussions or presentations might be conducted before a final decision is made and the tender is awarded to the winning bidder.

How to Respond to an RFP

Your response to an RFP is a proposal; a written document that outlines a proposed solution and/or plan of action in response to the issuing agent’s problem or need. For the issuing agent, your proposal is the opportunity to evaluate and compare vendors to identify the right, qualified and fair partner selection.

For you the vendor, your proposal is an opportunity to persuade the issuing agency to accept a particular course of action.

Your process should also be aimed at optimizing time and scaling to opportunity size and value. Large or small, as you grow, your process should grow to respond to the size of the opportunity with the appropriately sized process. 

• Win Themes. Strategic messages or headlines that guide evaluators while promoting the value of your solution.
• Differentiators. Solution features that differ from the competition.
• Discriminators. Solution features that differ from the competition, and are acknowledged as important by the customer.
• Ghosting. Highlighting a competitor’s weakness (without naming them) by highlighting your strengths.
• Evidence. Quotes, project descriptions and case study details make it easier for evaluators to trust you and accept your approach.
• Requirements. Annotate your requirements and sections with the above information to guide your writers and experts in their response.
• Style. Agreeing on style before writing begins avoids time-consuming rewrites.

Your Win Strategy isn’t set in stone; it can change as new information comes to light. Centralize access to this information to avoid version control issues and confusion as information evolves. 

Submission

Submitting your proposal is a big accomplishment, but the work is’t over just yet. To maximize your chances of securing the opportunity, here are some key steps to take after hitting the submit button:

• Confirm. Send a brief email to the RFP contact confirming your submission and expressing your appreciation for the opportunity. And indicate your availability for any clarification questions or follow-up discussions.
• Stay vigilant. Keep your eye on your email! Anticipate questions the customer might have about your proposal - or last-minute amendments!
• Congratulate your team. A lot of effort went into developing your proposal, and it wouldn’t be possible without your team. Kudos team! (At this point, don’t remind them there isn't another proposal they ought to be working on. Let them enjoy their accomplishment for a few minutes.)