How to Develop Effective RFPs

The use of informal methods of negotiating with computer system vendors is often ineffective and costly. Vendors are highly skilled in selling their products, and the naive buyer could end up with a system that cannot fulfill organizational needs. The request for proposal (RFP) is a tool for formalizing vendor negotiations. A well planned RFP prevents sales representatives from modifying user requirements to make the product more attractive. The structure of the RFP encourages standardized vendor proposals that are easy to compare. Finally, the RFP documents organizational requirements, which strengthens the buyer's position in case of disputes about performance inadequacies. RFP construction should involve users and should clearly specify: 1. system requirements, 2. the format to be followed for vendor proposals, 3. deadlines for their submission, and 4. the criteria by which proposals will be evaluated. The systems development manager should play a central role in identifying user requirements, translating them into RFP specifications, distributing RFPs to appropriate vendors, and evaluating vendor proposals.