What Is the Industry Standard Process for Responding to RFPs?
As an investor, you need to respond to RFPs (Request for Proposals) launched by the potential client. RFP is not only limited to the investment sector. A company can launch RFP to fix an internal system. In such a case, freelancers with ample expertise will respond to the RFP. However, in the context of investment, RFPs demand capital from potential investors. Many firms and business ventures depend on RFPs for meeting sponsors. As a responsible investor, you should know the industry standard process for replying to RFPs. Let’s delve deeper to know about the best way to reply to an RFP and about RFP support.
Understanding the concept of RFP support
RFP is counted as a business document that announces a new project, venture, business requirement, etc. In the investment sector, RFPs announce a new asset/instrument and seek investors for it. RFPs are launched by private and public business organisations along with government organisations whenever needed. Since RFP is a public document, it attracts bids from different contractors/investors. The one that has the greatest bid for an RFP gets the contract. When you respond to an RFP effectively, you increase your chances of getting the contract. Along with project details, RFPs also include the project deadlines and other details.
Consider the example where you are a qualified contractor involved in making business spaces. You receive an RFP for making a new business space in the city centre. Since the RFP for the new business space is public, many qualified contractors like you will place their bids. However, only one will get the contract for building a new business space based on the bidding amount and RFP response. Many investors/contractors aren’t able to reply to an RFP themselves due to a lack of expertise.
If you cannot reply to an RFP, you need to find RFP support services. There are many research & analysis companies to help you generate RFP responses. A third party can respond to RFPs on your behalf for better results. When RFP experts generate a response according to industry standards, you have better chances of winning the bid or getting the new project under your command.
The industry-standard process to reply to RFPs
The industry-standard steps for RFP response are as follows:
• Decide firmly on whether to accept or reject an RFP
The first step is to decide firmly on whether to accept the RFP or not. If you can fulfil all the requirements in an RFP, you can continue to create a response. However, contractors often find themselves in a situation where they can only fulfil a part of the RFP. If you cannot fulfil the entire requirements of an RFP, it is better to not waste any more time. Experts that offer RFP support also consider all the RFP requirements before creating a response. If all the demands in the RFP can be met, a response is generated.
• Focus on creating a compliance matrix
A compliance matrix is usually an excel spreadsheet that defines the relationship between proposals and RFP requirements. You can organise and monitor all the requirements mentioned in the RFP with a compliance matrix. Based on the compliance matrix, you need to build an outline. The outline will contain structure for the proposal document and customer instructions.
• Draft a response
Every RFP response can be unique, but they include some basic things. Some basic things to include in your RFP response are as follows:
- A reiteration of RFP requirements denoting you understand them.
- Name and location of the contractor or the company.
- Points that make you better than other bidders for any requirement.
- Draft answers to the specific questions asked in the RFP
- Your pricing/bid for the RFP requirements.
You need to cross-check your RFP response in its entirety before sending it to the issuer. You need to check the answers to the RFP questions before sending them to the issuer. You can consult with your team before sending an RFP response. Proofreading helps you remove any errors from your RFP response.
It is hard to find RFP experts in 2022. It is why you can depend on a third party for RFP support. Draft an RFP response according to the industry standards now!