Write a RFP

RFP Examples

RFP Examples:

Write a RFPThe phone is ringing or you are in meetings most of the day so when will you find time to write a quality RFP which will garner the appropriate responses?  Overtime is not a viable option and developing templates from scratch can  take 10 hours plus, that is if you are not interrupted and proficient in all the appropriate lingo. Ten (10) hours @ $20.00 per hour —— approximately $200.00 to develop a single RFP document!

Our premium pack has 90 plus templates

Purchasing Month End report example

Month End Report:

Are you a Materials Manager or someone responsible for managing  the purchasing and warehouse department for your company?  Have you been asked to put together a month end report and / or want to improve your existing reporting? RFQ48 – Purchasing / Warehouse month end report template might be just what you are looking for.

This example template focuses on reporting activity for both the procurement and warehouse departments. Management will be impressed with the tracking you have identified and  this report will assist you in presenting your departments goals to all staff. Your Superiors will truly appreciate that within minutes they can review all vital areas and ascertain trends for both departments. Managers love reporting which is quick to digest and RFQ48 gives them a snapshot of all the departments highlights.

RFQ48 has Six (6) built in edit friendly Microsoft word graphs

Should you add an environmental policy to your RFP?

Adding an Environmental Policy to your RFP:

Many large corporations add their environmental policy statement to all outgoing RFQ or RFP’s when it pertains to contractors or suppliers providing a service both on or off their job-site which in any way may impact the environment. This is a good practice and it puts the contractor or supplier on notice that they are expected to meet or exceed your own company standards when it relates to protecting the environment.

There are many reasons why companies include an environmental policy with their RFP’s.

Request for Quote – Standard

Standard RFQ:

Template #RFQ37 can be used for publishing a  standard or simple RFQ. Valuations and risk to the bidder do determine complexity of the request for quote document you issue. The lower the risk and dollar value, the less complex the document might be. The point — if you are procuring stationary or photocopy paper say versus an oil filled electrical transformer. For the copy paper, a standard RFQ | RFP like RFQ37, would likely suffice. In the case of the transformer, you would be wise to provide a more detailed request for quotation document to ensure you have all your bases covered. If you are unsure, it is always a good idea to have legal counsel approve your RFQ before it is issued.

You will find this Microsoft Word edit friendly RFQ template and 44 others in our Standard Pack.  Click Here to sneak a preview of this 3 page document.

Purchasing Policy and Procedures Template

Purchasing Policy and Procedures Template:

Regardless of the work experience of your existing purchasing staff, producing a policy and procedures manual is well worth the effort. Some benefits of having a quality policy manual:

  • it is an essential for in-company training program for junior members
  • it adds flexibility in facilitating the transfer of personnel from one job to another in case of vacation or workload
  • it allows you to set a standard
  • last but not least is useful in explaining to outside departments what and how things are done

Some Managers feel

Purchase order Terms and Conditions

Purchase Order Terms and Conditions:

If you are looking for a BASIC Terms and Conditions (TC’s) template to use with your purchase order, the following set will get you going. If you typically do not include a set of TC’s with each purchase order you fax, email or transmit to your Suppliers, at the very least you should have each Vendor sign off on your TC’s and have them agree that all future purchase orders they fulfill will be bound by such TC’s.

These days digital storage is a cheap commodity so you can have the Vendor sign off on your TC’s and store the documents by way of pdf for future reference. This will give you some  peace of mind, necessary back-up and also allows you to avoid having to transmit them with each purchase order you issue.

RFP – What is it?

Request for Proposal – RFP:

What is a RFP and how and when should a procurement professional utilize it. A Request for Proposal (RFP) is an invitation to Vendors to submit a written offer to supply services or a solution to a requirement.

So, you have an internal need or requirement and there is nobody qualified in the organization to manage the requirement or possibly resolve it. You need to outsource the job and now might be when your employer requests you issue a RFP.

The RFP is then written to illicit positive feedback, therefore, needs to be designed professionally and must clearly identify the actual work you are hoping to farm out and the expectations.

More specifically, it is written to ensure suppliers don’t assume the entire risk. In manufacturing, this might mean the buffering of raw materials and finished goods to meet the final demand for goods. In a services type RFP, it should ensure the consultant has a clear indication of the amount of time and or resources he or she is expected to put into the project.

A RFP is different than a Request for Quote (RFQ). With a RFQ the Vendor can be certain as to the supply risk. For example, like having enough capacity to ensure supplies and goods at the right quantity, quality, time, and cost. We need 12 pairs of leather gloves and here is the part number. This RFQ is straight forward and comparing costs are for the most part simple. A RFP is not necessarily so cut and dry and quite often asks the Vendor to propose a solution.

Okay let us get back to writing the RFP. The Buyer will need the Vendor to define the specific monetary and/or service obligations which make up the offer. It is the Purchasing departments job to make the RFP available to several suppliers to respond with a competitive proposal or a solution to your request.

What to include – the Request for Proposal should include a short but detailed description or specification of the products or services which are required. This can also be identified as scope. As with many business writing efforts, an effective request for proposal will begin by declaring the purpose for the document. Even the most casual of formats for a RFP will incorporate details of this nature. In comparison, a highly structured format informs the applicant precisely how to arrange data in a manner that is certain to have significance to the issuing business. So, it is vital to be clear on the scope of work and try not to cloud the document with legal terminology. In other words, leave all the legal terms to the end of the document as this might deter recipients or quality vendors from offering. The higher the risk the more terms and conditions might be required but again not all RFP’s warrant forty pages of legal requirements.

FOB Point

FOB Point:

Lets talk about shipping terms and where the responsibility lies for a shipment.  The correct definition for FOB Point is Free-on-Board aka freight on board and the term FOB is often misunderstood, even by the professionals.

The FOB point is important as it ascertains:

  • when legal title of the goods being shipped transfers to the buyer. Say you were purchasing a bulk liquid like a fuel or a chemical, the FOB point could be origin, destination, buyers tank or even the intake nozzle at point of delivery.  As you can see, depending on the commodity, having the proper FOB point is crucial.
  • who is responsible for handling damaged goods or freight claims with the carrier in the event they are lost or damaged during shipment. An example: FOB Destination, Freight collect means: Buyer — Pays and is responsible for freight charges, Seller — Owns goods in transit, Seller — Files any damage claims (if any). Another potential headache area so choose wisely.
  • who pays the carrier.

Many will suggest or argue that FOB destination is the most beneficial because

Letter of Understanding (LOU) – Sample

Sample Letter of Understanding -LOU:

If you find yourself in the position of purchasing a website, it’s content and the domain name or URL, this sample template will give you an idea of some specific points you will want to cover to ensure you are avoiding any potential misunderstandings. Also, keep in mind you can tailor this template for other LOU requirements.

SAMPLE LETTER OF UNDERSTANDING for acquisition of  [www.domainname[dot]com]

June 22, 2014

[name] [street address] [city, state and zip]

Dear[_____________________:]

This letter summarizes the understanding we have reached regarding the terms and conditions of sale of the website or (domain name) [________________]. To be certain this letter accurately reflects our understanding, please review the items below and indicate your understanding and agreement by signing on the signature line below.

Terms and Conditions of Sale

A. The agreement covers the outright sale of the domain and website content for http://www.[________________ ]for the price of U$[__________]. Sale price was based on revenue of approximately $100.00 per calendar month. Price includes free push (transfer) at[_____________] and all paid up domain registration fees.

This template in its entirety is included in both the Premium and Mega Pack downloads in the  margin. Once purchased, it is sent over immediately by way of digital download.

Purchasing Glossary or Buzzwords

RFQ – RFP Glossary Buzzwords

Ever wonder what some of the terms used by Materials Managers and Purchasing Agents mean? Terms like RFQ, FOB, DNR , or a RFP, Vendor, Standing Order Agreement.  Although, these acronyms / terms are used frequently and recognized in the field, it is always a good idea to add them in their full context at least once or define the term on your definitions page to ensure there is no misunderstandings.  Here are a few terms commonly used in the Materials Management or procurement field:

RFQ – Request for Quote or Quotation
RFP – Request for Proposal
ITQ – Invitation to Quote
RFI – Request for Information
EOI – Expression of Interest
IFB – Invitation for Bids
ITT – Invitation to Tender
RFB – Request for Bid
LOI – Letter of Intent
LOU – Letter of Understanding
FOB – Free on Board

UTQ – Unable to Quote
DNR – Do not reorder
UTS – Unable to Supply

Standing Order – A standing order is an open ended purchase order or in essence open ended contract which grants authorization to make regular periodic shipments of a specified product. Usually an annual agreement.

Supplier – A provider of goods and services that typically bills on an invoice and has regular transactions with the Owner or Buyer.

Vendor – Another Name for a Supplier.

Compliance

  • Ensuring suppliers perform their obligations and supply goods in accordance with contracts or that services are performed as prescribed by site safety rules and regulation and certain federal, state or provincial laws.

Sample of a compliance clause in a supply agreement:

  • The goods called for in this agreement shall comply with all applicable codes, standards and/or both regulations of the governing inspection authorities at the place of use.  The Vendor shall acquire and keep in force all required permits and certificates of approval.   The Vendor shall comply with all provisions of law governing its performance under this agreement including, without limitation, Safety and Reclamation Codes,  all dangerous goods legislation and all workplace hazardous materials legislation and regulations governing the design, safety, handling, packaging, labeling, transport and the use of goods.

Due Diligence

  • Due diligence in a broad sense refers to the level of judgement, care, prudence, determination, and activity that a person would reasonably be expected to do under particular circumstances.

Force Majeure (sample clause)

  • No party hereto shall be liable for any delays in the performance of their obligation hereunder (excluding financial obligations) if any such delay or failure is due to acts of God, war, riot, sabotage, strikes, lockouts, or differences with workers, accidents, lack of water, power, gas, materials, any and all government laws or regulations, or any disabling cause beyond the reasonable control, and without the negligence of, the party invoking this clause.

Notice to the other party of any event of force majeure stating the date of the commencement thereof shall be promptly given and shall immediately be followed by a notice setting for the particulars of the event of force majeure and the expected delay.  The party so affected shall take all reasonable steps to remove the force majeure conditions and to resume, with the least possible delay, compliance with its obligations under this agreement, and shall promptly advise the other party of the date when the force majeure is ended.

Assignment (sample clause)

  • The Vendor may not assign or sublet any of its rights or obligations under the Agreement without the prior written consent of the Owner,  which consent may be arbitrarily withheld.

Interested in learning more or in acquiring an array of templates which cover the above terms? If you are planning to issue a RFP or RFQ, please visit our Special Offers page – RFQPro.com can help.