Answer from a vendor: Happens all the time
Me: GROAN!!!
I hear that comment ALL THE TIME, (and its a generalization I hate almost as much as people saying "buyers only think about price and beat up vendors for pennies")...and, although the occurrences are so rare, when it happens, people jump onto it and think it happens all the time... :(
For the effort involved to build/manage a whole RFP process from the BUYING side, I don't know many end-users that want to go to that effort even when they DON'T have someone in mind...Plus, there are policies that allow for 'direct awards' and most end-users with "someone in mind" will try those...one example is a Notice of Intent that is posted where they'd normally post their RFP - stating they plan to award this contract to X company, for Y years at a total of Z dollars....then, if vendors contest them doing that - THEN and only THEN do they do an RFP (because someone wanted to compete against the person they had in mind)..
So if there's a competition as a result of an NOI or a noted incumbent, yes, you are likely fighting a more difficult fight.. BUT, ask some questions before declining to respond to the RFP. I've done a number of RFPs where there was an incumbent, but the end-user was VERY unhappy with the past contractor (we just couldn't state that publicly in an RFP document) so some carefully phrased questions may give you that insight.
1) Check who's running the process - if it's an experienced procurement person, you have a fair process.
2) Is there an incumbent, if yes, for how long?
3) Has the scope of work changed any from past years?
4) Is the incumbent restricted from responding? (usually they are allowed to respond, unless there is a lawsuit pending)
5) Are there any improvements to the scope/service the buyer would like to see as a result of this process (if they say no, or are vague they're 'happy' with status quo.)
6) How much are they considering 'transition time'/'transition costs' in the evaluation (ie it becomes a cost penalty to a new vendor) Yes, the buyer doesn't want to increase their costs to bring in a new vendor, but how much are they willing to switch to a new vendor? If transition costs/time count for only 10% or less of the overall points, they want a competition but are still aware of their costs; if it counts for 30% or over, they are very price-conscious of a transition and really need someone exceptional to make them 'switch'.
Why not ask "why are you doing this RFP, are you not happy with current vendor" - it's very hard to answer 'publicly' if they are unhappy for fear of retribution from current vendor and/or you'll get a generic answer like "We would like to conduct a competitive process to see what the marketplace has to offer".
1 comment:
I too hear that maxim way too often. If they did their homework and researched WHY a RFP was being issued, they'd be prepared for that. And honestly, who is going to put that much effort into the process if they already have a vendor they want to go with? Seriously, I can think of much better ways to use resources than running a RFP circus.
But like I tell vendors all the time, Not all Requests for Proposals are worth a proposal!
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