An RFP (Request for Proposal) is essentially a contract notification designed to solicit responses from suppliers who have met certain criteria, identifying the ones most likely to deliver the project successfully.
The RFP process ensures transparency and fairness in the procurement process; two qualities mandated in the Procurement Act 2023. RFPs streamline public sector procurement. They save time and increase the chances of finding suppliers who don’t just deliver the services/products required, but go above and beyond, delivering better overall value.
The first thing that suppliers must do is read the RFP carefully and follow the submission instructions. Instructions contain the required structure and format, which makes it easy for buyers to score responses and compare suppliers and their proposals. Creating proposals that adhere to these instructions is crucial, as RFP responses that go off-spec are likely to be dismissed out of hand.
Understanding the RFP Response Process
The RFP response process is a critical step in winning new business and securing contracts. It involves carefully reviewing the RFP document, understanding the client’s needs and requirements, and creating a compelling proposal that showcases your organisation’s capabilities and expertise. A well-structured RFP response process can help you stand out from the competition, build trust with the client, and ultimately win the contract.
Highlight your unique value proposition and demonstrate how your solution provides additional value compared to competitors.
By following a structured RFP response process, you can create a winning proposal that not only meets but exceeds the client’s expectations.
Information gathering
The second thing is to fully understand the RFP, which takes a bit more than skimming it for priorities. It takes research to learn more about the contracting authority, their needs, and the prospective client. You can get information off the website but don’t discount the power of a Google search.
You might find news articles or blogs about previous projects and if you’re lucky, you’ll find out which suppliers they’ve used in the past. This tells you a lot about their purpose and the types of suppliers they prefer.
Google will also reveal your likely competition. Knowing the enemy is half the battle, so research the companies as thoroughly as possible without a restraining order.
Armed with this information, you can see how well your services/products fit the bill and how they compare with your competitors. You’re looking for standout features that distinguish your business from the others.
Now, we’re going to go into more detail about how best to respond to RFPs, but first, we need to know what contracting authorities are looking for.
What Government Buyers Expect In RFP Responses
Buyers in the public sector want a request for proposal to include:
- How your approach addresses their primary pain points
- The qualifications that make you the best candidate for the potential client
- The specifics of your solution and how it provides additional value
- Your pricing, including payment plans if applicable
- Case studies to back your claims of brilliance
- Terms and conditions.
Qualify Every RFP Opportunity
Not every RFP opportunity is worth pursuing. It’s essential to qualify each opportunity by assessing whether it aligns with your organisation’s goals, values, and capabilities. Ask yourself:
- Is the project a good fit for our team and business?
- Do we have the necessary resources and expertise to deliver the project?
- Is the project feasible and achievable?
By qualifying each RFP opportunity, you can save time and resources, and focus on pursuing opportunities that are more likely to result in a win. This strategic approach ensures that your efforts are directed towards projects where you have a higher chance of success.
What Are The Key Sections Of A Winning RFP Response?
The structure of RFPs varies according to the buyer and the type of contract, however, certain key sections are pretty universal.
Cover letter
An RFP cover letter is a good place to start. This is not a long letter. It’s actually quite short. It’s a bit like an elevator pitch, so stick to four, maybe five paragraphs max. Include:
- A brief introduction to your business.
- A quick look at what you can provide.
- How your solution surpasses other suppliers.
This is your chance to make a good first impression. Your writing should be strong and engaging, but this is not about you. This is about the buyer. Keep it buyer-centric; in other words, don’t hog the limelight.
Executive summary
As it says on the box, it’s a summary of your proposal, emphasising the important bits – the bits that distinguish your solution from your competitors. It’s a bit like an elevator pitch on steroids. Still succinct but with more detail. The executive summary is the bait that hooks the buyer and reels them in.
If you want to keep reeling, you must make the buyer feel completely understood. Allude to the fact that you understand each element of their challenge and have the tools and the talent to resolve each of their pain points.
Ensure that it’s easily readable; short paragraphs, bullet points, no overly technical language, and buyer-centric.
Details, key deliverables, and implementation
Finally, details.
Describe the deliverables and how you’ll use them to optimise the buyer’s benefits. It’s important to show how well you understand their needs and priorities and that your proposed solution aligns with those priorities.
It’s important to have an implementation plan. Buyers like plans. They instill confidence because you know what to do and have the matter firmly in hand. The plan should include the scope of the work, estimated timeline, and whether other parties are involved, like subcontractors or outsourced professionals.
The plan should also include how you’ll tackle the requirements and criteria in each of the RFP’s sections. For example, how you’ll ensure your supply chain complies with the contract’s terms, and industry and national regulations and legislation.
Note: If there’s an aspect of the contract you can’t deliver, be honest. This is where the sub-contractors come into it.
Pricing structure
Your RFP response must be crystal clear about your pricing. Create a table with different categories, labour, materials, overheads, optional add-ons, and potential extras.
You should also highlight the monetary value specific to the buyer, for example, discounts, incentives, and savings directly related to your service/product (reduced operating costs due to enhanced efficiency).
Be clear about your payment terms, including instalments and accepted payment methods, like EFTs or card payments.
Note: Give yourself an extra 10% gross margin when you include your pricing details. It’s a safety net you may need when negotiating the final proposal with the sales team.
Proof of successful projects
The public sector is risk-averse. You must prove that this isn’t your first rodeo. Case studies are great for demonstrating your experience to potential clients, but they are also pretty formal. If possible, rewrite your case studies as success stories. It’s more personable, promotes empathy, and sets the foundation for a happy, long-term working relationship.
You should include your credentials, like your certification certificates to prove you meet requirements regarding quality assurance and data security. Include your accreditations and membership to professional bodies. Accreditation proves you meet certain standards and aren’t just blowing hot air.
Remember, proof must always, always be relevant to the buyer’s pain points.
Terms & Conditions
The final terms and conditions will be hammered out during negotiations, but it’s important for RFP responses to clarify potential risks and their solutions and include a termination clause, so you have a back door.
Ready For Submission?
Once you’ve answered all the questions and have all the information that you need, you might feel you’re to hit send. But wait, as the meme says, “I do my best proofreading after I hit sned.”
Proofread the proposal to eliminate grammar and spelling mistakes. Do it again. Word and Google Docs have spelling and grammar checkers, use them.
Then send it through other online content checkers, like Grammarly, which is free. Grammarly has a paid subscription that you should consider. After all, you respond to many RFPs and other types of public sector procurement contracts and need a quality system to make you look good.
This is more important than you might think. RFP responses littered with errors will be dismissed with disdain. It doesn’t matter how good you are or how well you fit with the contracting authority’s requirements. You will be shown the door.
Checks complete and data verified, you are finally ready to submit your detailed proposal. Mostly.
RFP Software
RFP response software is a godsend. Not only do RFP automation tools save you a significant amount of time when creating your proposal, but their optimisation features can increase your win rate.
One of the most important optimisation benefits is speed. Automation features generate content, which you can tailor to the contract in question. There’s a central content library that stores all pertinent information that can be used or modified for future proposals, for example, details of your compliance certifications.
Content is easily available and just needs to be placed on an RFP template. This cuts response times drastically and enables you to respond to more RFPs – hence the higher win rate.
Analytics is another key feature. You need to know what works and what doesn’t, and why. You can generate reports for a deep dive into the data and put the lessons to good use when you write your next request for proposal response.
B2G Marketing Boosts Visibility & Brand Awareness
It’s great that you are getting RFPs. It shows you have a reputation for quality and that’s always good. But, how do you build your reputation in the first place?
Marketing.
Marketing puts your brand front and centre and makes your business shine like a star. The thing is, public sector marketing isn’t like marketing in the private sector. There are different rules and criteria, and the sector is stricter about compliance.
Cadence Marketing specialises in the public sector and has a wealth of experience and success stories to draw upon.
If you want to boost your brand and become a firm favourite among government buyers, contact us today and book a free consultation. We’re happy to show you just how much we can do for you and your business.
