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Supplying Principles and Practices > USPS Supplying Practices Process Step 2: Evaluate Sources > Start Request for Proposals (RFP) Development
Start Request for Proposals (RFP) Development
Once a decision has been made to purchase the requirement, a request for
proposals (RFP) is required. Well-written requirements documentation
clarifies expectations, establishes the ground rules, and is a prerequisite to
successful purchasing and contract performance. Adequate time must be
allowed to ensure that the RFP properly describes the requirement and
conditions, without being so prescriptive that opportunities to achieve best
value are lost. A preliminary RFP will be developed at this stage; Review and
Finalize Request for Proposals (RFP) activities will be conducted during the
Perform Solicitation-Related Activities task of Process Step 2: Evaluate
Sources.
The Purchase/SCM Team is responsible for developing the RFP. Approval
requirements are further outlined in the Review and Finalize Request for
Proposals (RFP) topic of the Perform Solicitation-Related Activities task of
Process Step 2: Evaluate Sources. The Contracting Officer, in consultation
with the Client, will determine whether to solicit prequalified suppliers and/or
other suppliers. The latter is preferred when:
• A list of prequalified suppliers does not exist, and no suitable
sources of supply can be identified (Prequalify Suppliers topic of
the Perform Solicitation-Related Activities task of Process Step 2:
Evaluate Sources)
• Sources of supply have been identified as insufficient (Develop,
Issue, and Analyze Responses from RFI topic of the Decide on
Make vs. Buy task of Process Step 1: Identify Needs)
When doing so will further the competitive interest of the Postal Service, the
Contracting Officer may decide that overall demand for a type (or types) of
goods or services makes it more effective to issue an RFP for an expanded
list of requirements, rather than for a specific Client need. In these situations,
the Contracting Officer and the Purchase/SCM Team should consider the
Conduct Spend Analysis and Develop and Finalize Sourcing Strategy or
Production Plan topics of the Develop Sourcing Strategy task of Process
Step 2: Evaluate Sources.
Once it has been determined that an RFP is appropriate, a statement of
objectives (SOO), statement of work (SOW), specification, or product
description must be developed before issuance, because these solicitation
documents guide the content for the RFP.
The RFP package falls broadly into two parts: the formal and procedural
requirements, which should be standardized as much as possible, and the
less-formal statement of objectives (SOO), statement of work (SOW),
specifications, or product descriptions that is unique to each purchase.
When drafting RFP documentation, it is important to keep cost and technical
requirements separate, because these may be evaluated separately by
different evaluation teams. The formal and procedural part of the RFP may
also require suppliers to provide necessary cost or pricing data to support a
determination of price reasonableness or cost realism.
The RFP outlines qualitative and quantitative project expectations, as well as
project assumptions. These will dictate the amount of oversight and
administrative management required of the Purchase/SCM Team over the life
of the contract. It is therefore critical that developers of the RFP discuss its
content with stakeholders during preparation to ensure that foreseeable
factors affecting contract performance are addressed.
The statement of objectives (SOO) is a brief document incorporated into the
RFP that describes the basic, high-level objectives of the purchase that
potential suppliers are required to support. It is used in lieu of a formal
statement of work (SOW) to provide potential suppliers the flexibility to
develop cost-effective solutions and the opportunity to propose innovative
alternatives to meet Postal Service objectives. Because of its nature, the
SOO is often used in performance-based contracting, which emphasizes
what will be performed as opposed to how it will be performed.
The SOO establishes the basic needs of the Postal Service, including
performance, price, and quality. The language of the SOO must be
streamlined to avoid "how to" direction while clearly stating all essential
operational requirements. It may be broad and flexible with respect to
deliverable material and certain procedures and specifications, to the extent
that it protects Client interests.
The SOO is the common basis for detailed responses submitted as a part of
a proposal. The use of an SOO over an SOW should be strongly considered
when appropriate, because the SOO provides the opportunity for the
potential supplier to leverage its expertise in the determination of the best
solution for meeting the Client's needs.
The statement of work (SOW) should be provided in the RFP when
purchasing a service, rather than an end product, because an SOW typically
illustrates the characteristics of how a deliverable-oriented project will be
conducted. SOWs may include specifications or product descriptions;
whenever standard or modified commercial products will meet Postal Service
requirements, product descriptions must be used instead of specifications.
SOWs must describe the work as precisely as possible and in enough detail
to allow a best value decision and effective contract performance.
An SOW typically comprises:
• Project scope
• Key assumptions
• Postal Service responsibilities
• Supplier responsibilities
• Deliverable materials
• Completion criteria
• Estimated schedule
• Additional requirements (specific to a particular offering or
transaction)
• Deliverable materials guidelines
• Project procedures (such as the change control procedure,
deliverable materials acceptance procedure, and escalation
procedure)
After determination of award, SOWs are the standard for measuring
performance and are used by both parties to determine rights and obligations
under the contract.
The performance-based statement of work, often referred to as the
performance work statement (PWS), is the foundation of a
performance-based contract. It is more broad and less precise than an SOW,
and describes the effort in terms of measurable performance standards.
These standards should include such elements as "what, when, where, how
many, and how well" the work is to be performed.
Specifications are generally used when purchasing an end item rather than a
service. Specifications must state the identified needs completely,
considering the nature of the commodities being purchased. Whenever
standard or modified commercial products will meet these requirements,
product descriptions should be used instead of specifications.
Specifications may be stated in terms of:
• Function - so a variety of commodities may be considered
• Performance - including the range of acceptable characteristics
or the minimum acceptable standards
• Design requirements - provide exact dimensions, materials, or
characteristics
Whenever standard or modified commercial products will meet the Client's
needs, product descriptions should be used instead of specifications. Product
descriptions should include:
• A common generic identification of the item
• Known acceptable brand-name products, identified by model or
catalog number, and the commercial catalogs in which they
appear
• The name and address of the manufacturer or distributor of each
brand-name product referenced
• The application or use of the product
• A description of any required modification
Develop, Issue, and Analyze Responses from RFI topic, Decide on Make vs.
Buy task, Process Step 1: Identify Needs
Conduct Spend Analysis topic, Develop Sourcing Strategy task, Process
Step 2: Evaluate Sources
Develop and Finalize Sourcing Strategy or Production Plan topic, Develop
Sourcing Strategy task, Process Step 2: Evaluate Sources
Prequalify Suppliers topic, Perform Solicitation-Related Activities task,
Process Step 2: Evaluate Sources
Review and Finalize Request for Proposals (RFP) topic, Perform
Solicitation-Related Activities task, Process Step 2: Evaluate Sources
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