Writing a Winning Response to an RFP

A Basic Outline to An RFP Response

When conducting business between companies, typically referred to as business-to-business or B2B, most opportunities and contracts are generated through a process of bid solicitation.  Businesses looking to outsource services will often issue what is known as a Request for Proposal (RFP) to seek information from various vendors and suppliers who they believe can do the job.  To successfully reply to these opportunities and receive a contract award, you must respond to RFPs with a thorough, well-structured, and winning proposal.  Let’s discuss some of the important features of a strong RFP response, and review a basic outline that illustrates some of the key content your RFP response should include.

Types of Bidding and Proposal Documents

There are four main types of contract documents that you will encounter as a business development or sales manager:

1. Request for Information (RFI)

An RFI is typically issued prior to a request for a formal business proposal, as a way for potential clients to explore supplier options, and capabilities.  An RFI will often be used to gather information about what can be offered by potential partners, notional timing and costs for delivery of the project, as well as technology offerings.  RFI responses and feedback are often used to help a prospective client revise their requirements or make changes to the scope of a given work package before issuing a formal detailed RFP.

2. Statement of Work (SOW)

A Statement of Work is a document issued by the client that outlines the project scope, roles and responsibilities, the expected deliverables as well as desired timing.  In general, a SOW differs from an RFI and RFP in that it will typically define very specific requirements that must be satisfied by the supplier if awarded the business.

3. Request for Proposal (RFP)

An RFP is document that is issued to prospective suppliers and partners, seeking a formal proposal and pricing for a given project.  An RFP may be issued in conjunction with a SOW, or may be a stand alone document to which suppliers respond.

RFIs, SOWs and RFPs are the most common types of subcontracting documents used in B2B contracting.   And while each has its intended purpose, you might encounter any combination of them depending on your industry.  However, the overall intent of each of them is to understand capabilities of vendors and suppliers, such that the client can gain a comparison of each firm and make a selection.  

4. Letter of Intent (LOI)

A Letter of Intent (LOI), sometimes referred to as a Memorandum of Understanding (MOU), is another common document you may encounter that is used ahead of signing a formal contract.  Often times, if your RFP response is down-selected by the client, you may requested to meet and negotiate terms of an LOI.  Signing an LOI is binding – like a contract – but may only be an abbreviated version of the contract such that work can begin, while the full contract terms are negotiated.  As part of your RFP response, you may be requested to provide feedback or comments on the customer’s initial LOI.

Regardless of which type of document and arrangement the customer uses, in all cases you should put your best foot forward and invest time in producing a quality proposal that can win.

Responding to an RFP – Getting the Basics Right 

Now that we’ve highlighted some of the basic types of documents that you’ll encounter in B2B contracting, let’s turn our attention to generating a winning RFP (or a SOW, or an RFI) response.

First, be sure to craft your proposal carefully such that it goes above and beyond the basic expectations of the response.  Because you are competing for the business against other bidders, you want your proposal to showcase your company’s capabilities.  Beware that in many instances, your response may be the only thing that the contracting organization will use to award a contract.

RELATED: Grow Your Business Through Strategic Partnerships

A well-developed proposal should be organized in a coherent manner and free from typos and other writing errors.  Written proposals should carry a formal and professional tone to signify the level of care and thoroughness taken by your firm as a whole.  In the eyes of the supply chain or purchasing agent, the quality of the RFP response is indicative of the quality of work they can expect from your firm if given the contract.

Details like formatting, labeling of tables and images, and overall accuracy of information are highly important as they are direct indications of your firm’s product quality and attention to detail.  To say it differently, even the best information packaged into a poorly prepared document will simply weaken your firm’s position when it comes to winning business opportunities.

A Sample Framework for Your RFP Response

In some cases, the SOW or RFP issued from the client will dictate a specific format or means by which the response should be submitted.  If you encounter this situation, always comply with the customer’s requirements to avoid having your pitch disqualified.  However, this is not always the case; sometimes the format and framework of your RFP response is left up to you.  In the absence of a pre-defined RFP response format, you can use the following outline as a starting point.

Part 1 – Introductory Content:

The front matter of a proposal should include a Table of Contents, a list of figures and tables, a list of relevant and related documents, and a definition of the proposal’s scope.  A specific introductory section defining the scope of your response is critical, as it clearly states the bounds of your proposal – what is included, as well as what is not.

Further, when writing an RFP response, include a brief overview of your company or organization, as well as examples of your firm’s pedigree and experience with similar projects.  An exhaustive list of your prior work is not necessary; but highlighting a few relevant and similar projects you worked on previously assures new clients that your firm has the skills, experience and resources to do the work.  Examples of prior work are a great way to demonstrate to customers you are able to provide the value they seek.

Part 2 – Approach:

Following the introductory paragraphs, switch to providing a detailed outline of the approach your firm plans to take to deliver the contractual requirements. 

Outlining a detailed approach in an RFP response allows the prospective client to better understand how your firm plans to execute the project.  An Approach section in your proposal also ensures the client that you fully understand the requirements and objectives, and gives the client a chance to clarify details.

Additionally, the Approach section allows your firm to showcase its expertise and skill. Depending on the size and scale of a project, you may consider including a proposed organizational chart as well as brief biographies (academic credentials, years of experience, types of projects worked in the past) of the employees who will be assigned to the project. 

Including such information is particularly useful when working with foreign clients who may be less familiar with your firm, and often gives the client confidence in the firm’s ability to deliver a quality product.

RELATED: What Your Customers Really Want

Part 3 – Deliverables and Schedule:

Following the plan of action, the next part of your written RFP response should provide a clear statement of the deliverables and outputs to be provided to the client.  This will again serve as a mechanism by which the client and your firm can agree on the details of scope and expectations during ensuing discussions.

Depending on your industry, deliverables may include written documents, client-facing meetings and other milestones as appropriate for the opportunity.  If the client specifically requests a given set of deliverables, explain what you will do in order to create them. 

As part of your RFP proposal, you may want to offer more than the client is asking for as a gesture of your willingness to partner with them.  For instance, you may want to offer free hardware for testing purposes, training to the client’s staff, or some other gesture of goodwill as it relates to the client’s needs and the project.

 If they do not list specific deliverables, identify those you would generate and provide voluntarily.  Customers will be looking for the value you provide as they review your proposal.  The more you can offer, the better your chances are of winning!

RELATED: Our Sample Outline for Writing A Proposal

Part 4 – Assumptions:

Perhaps the most important part of any RFP response and written business proposal are the assumptions made, or exceptions you are taking to the RFP requirements.  Towards the end of the document, include a list of assumptions that highlight any open questions and concerns you may have.

Clearly stated assumptions help protect your firm from unknown conditions. For instance, if a client were unable to provide a clear timescale in which the work needed to be completed, you should provide an assumed completion date based on the resource plan you’ve stated earlier in the proposal.  You should also offer, however, that alternate completion dates are possible, as mutually agreed to by both parties to make sure you client sees you are flexible on your offering.

Ultimately, if there is a scope dispute after contract award, you can lean upon your proposal assumptions as evidence of your position.

Part 5 – Recommendations:

Depending on the specific RFP, include a section for general recommendations in your RFP response to your customer.  Again, when it comes to establishing a strong relationship with a potential client, willingness to provide recommendations and initial feedback indicates your firm has their interests in mind and is able to provide real, tangible value to them.

Often times RFPs are issued because the issuing party lacks the experience, knowledge or manpower.  Thus, providing some initial recommendations assures clients that your firm can help further define the client’s needs when they are is unsure.

On this point, some business development managers are unwilling or do not prefer to offer recommendations without a contract in place, as such ideas could be taken and passed onto your competitor.  While this is certainly true, in more modern B2B environments companies are looking more for strategic and long-term partners. 

Offering some form of basic advice and feedback, therefore, can help differentiate your RFP response and offering beyond just the price.

Quick Deadline? Save Time With Our ProGuide and Word Template!

Developing an RFP and RFQ Response Kit

This Ready-to-Write RFP Response template (Microsoft Word Doc format) will give you a head start in writing your RFP response. You can follow the template we’ve setup for you, or modify it entirely to be your own. You will ALSO get our 35-page MRH ProGuide containing everything you need to know to develop a solid response to your customers’ RFPs and RFQs. This ProGuide is packed with tips on everything from formatting your document, to setting a capture strategy, to evaluating your competition. It also includes a printable checklist to help you review your RFP Response before submitting it to your client.

[ezcol_1half]Here’s What You Get:

Length: 9 Page Word Template; 35 Page ProGuide
Format: .zip Download; (includes .doc Word Template, PDF ProGuide)
File Size: 588Kb
Price: $34.99
Download Link Made Available After Checkout
Buy Now[/ezcol_1half] [ezcol_1half_end]Get the RFP Response ProGuide Table of Contents:

RFP Response Contents
TOC-RFP-Response.pdf
Version: 1

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Languages:	English
Author:	MRH Team
Platforms:	Windows 8
Requirements:	PDF Reader
Date:	July 17, 2017

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Part 6 – Pricing:

In many cases, pricing information is provided as a separate document, typically a cover letter, and serves as an attachment to the formal RFP response.  However, you may wish to embed such information in the written proposal itself.  

The pricing information should provide the fees, both recurring and non-recurring as necessary, as well as payment terms and currency.   Depending on the work or the industry, it may also include things like escalation clauses and other assumptions related to pricing a given opportunity.

Crafting a Strong RFP Response

Winning RFP responses should be thorough, professionally written and showcase your firm’s abilities.  Further, your written proposals should also indicate a level of flexibility and willingness to adapt to a given client’s needs and express an interest in partnering with them in the future. 

An effective RFP response will clearly outline your approach, your assumptions and a summary of recommendations for further discussion.  Finally, RFP responses should be customized to each of your clients, and be written with the goal of getting to a negotiation table in mind.

So go out there and win some business!

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