Transcript University of Michigan Auxiliary Services

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
Week
Task
1
Define the need
2
Get approval to proceed
3-4
5
6-7
Select/orient RFP committee
Develop mailing list
Write the RFP
8
Mail invitation to pre-proposal meeting
10
RFP pre-proposal meeting
11
Questions due from prospective supplier
11
Answers sent to prospective supplier
13
Proposals due
14-15
17
18-19
20
21-25
Analyze proposals
On-campus presentations
Reference checks/Site visits
Selection of preferred supplier
Negotiate contract
30
Approve final construction documents
34
Last day of operation for current supplier
35
Current occupant move out
36-44
New Supplier construction
45
New 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
Sections of the RFP
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
Additional Information and Reference Materials:
Website: umich.edu/~yecker
Sample Pre-proposal letter
Sample RFP
Sample Lease
RFP article: March 2004 ACUI Bulletin
Bob Yecke
734-647-7463
[email protected]