OSU PaCS 302-03: Request for Proposals (RFP)

Purpose

To explain and establish responsibility for the use of an alternative formal bidding process including RFPs.

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Applicability

All employees.

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Background

A Request for Proposals is one of two relatively standard processes used for formal competitive bidding (over $50,000) for purchases of supplies, equipment and services.  See Oregon Administrative Rules (OAR) OAR 576-008-0225 and/or OAR 580-040-0225.

The information obtained from an RFP will allow a department to compare the various products or services available and determine which one provides the best mix of characteristics and cost, as defined by the department’s needs.

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Definitions

Request for Proposals

A written solicitation document, issued by Procurement and Contract Services(PaCS) that requests pricing, a proposed method of accomplishing the objective for an item or service for which definitive specifications cannot be written and only the desired end result can be specified, and other information expected to be evaluated for selection is requested.

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Policy

Only Procurement and Contract Services (PaCS) staff are authorized to issue alternative formal solicitation documents, including Request for Proposals (RFP).  PaCS will use this information when preparing departments or employees who are considering a procurement through the RFP process.

The formal Request for Proposal process follows the same guidelines as the formal Invitation to Bid process, except that the price will not necessarily be the predominant award criteria.  The specific award criteria are detailed in the Request for Proposals.

Advertising requirements are satisfied usually by advertising on the PaCS web page for five calendar day.

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Procedure

PaCS staff work with departments to define the need and scope of work and will develop the RFP which will evaluate a mix of characteristics and cost.

The RFP typically has 3 main areas for evaluation:

• Mandatory requirements:  These can be seen as the actual “needs” of the solicitation.  If any vendor proposal does not clearly meet all the mandatory requirements it will be immediately rejected.  Therefore it is important to carefully identify the mandatory requirements correctly up front.
• Desirable requirements: These can be seen as the “wants” of the purchase request.  The vendor’s response to the desirables is evaluated and points are awarded based on how well they meet the defined desirable criteria.  The scoring system is clearly defined in the solicitation.
• Cost:  Cost can be made as an award criterion which may be equal to, greater than or less than the point value of all the desirable factors of the RFP. 

An RFP may be used when a department wants to purchase an item or service, but is unsure of the exact item or service, or if the department wants to competitively shop and compare brands or types.   The Procurement and Contract Services (PaCS) office will assist departments with the development of an RFP.

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Additional Information

The award of an RFP also takes more time than an Invitation to Bid (ITB) or Request for Quotes (RFQ).  The extra time allows vendors to submit protests of an award and the subsequent disposition of any such protests.  Although it takes extra time and effort developing, administering and awarding an RFP, the result is a product or service that is specifically suited to a Department's needs at a more competitive price.

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