An Annotated Table of Contents
Overview
There are few things that create as much drama in a public agency as the procurement of complex, commercial off-the-shelf (COTS) software. And while we will attempt to give the matter a somewhat tongue-in-cheek treatment, complex software acquisition is serious business. The procurement process can be long, difficult and expensive. And, if not done properly, can result in a poor decision, no decision, litigation and/or the end of some otherwise solid careers. For the major players - the project manager, the procurement officer, the procurement manager - the build-up and wind-down of a complex software project can result in a script for a very stressful year. . .
Click here to read the entire Overview
Setting the Stage
The roles and responsibilities of the major players, such as the IT Director and Most Important User, are defined. There is a discussion of the conflicting goals of Procurement and IT. IT wants the software it wants and wants it without delay. Procurement wants to ensure that the competition is ‘fair and open’.
Act 1 – The Procurement Director is Surprised!
A Few Things to Think About on the Way to the Hockey Game: Best Practices for Selecting Complex Software
Discussion of four caveats:
- There is a process for identifying, selecting and implementing software, but there is no standardized process.
- There is knowledge of problems, critical issues and risks associated with this project, but there is no definitive risk analysis for complex software projects.
- There is knowledge of the Critical Success Factors but no agreed upon list.
- There is no universal acceptance of the need for a Proof of Concept.
Best Practices Related to Request for Proposals for Software
A discussion of the available handbooks dealing with the RFP Process for software. A discussion of New Mexico’s Guide as the best I’ve found and the reasons it is the best. Discussion of notable features used in their RFPs for software including:
- Best and Final Offers
- Signing the Contract Before the Award
- A Single-Responsible Person Needs to be In-Charge
- A Description of the Sub-Factoring Process
- A Description of the Pre-Proposal Conference
- Examples of Major Forms and Reports
Act 2 – Scene 1: Newbie Gets Dumped on (Even More)!
The Fundamental Problem: Ensuring the Quality of the Specifications
A discussion of how the Procurement Officer, new at her job and unfamiliar with the application area covered by the software, assures the quality of the specifications. How to ensure that the specifications are complete, accurate and that they do not favor one particular vendor. How the procurement officer compensates for her lack of ‘content knowledge’. How she becomes an ‘instant expert’ by using the web. A detailed description of her day long search for information and what she found. A discussion of her major conclusions related to acquiring exemplary RFPs, building in a Proof of Concept, reviewing the Evaluation Process, determining how to handle cost, and using an content expert, an outside consultant, to review the RFP.
Act 2 – Scene 2: Newbie Pushes Back
Other Potential Problems with the Draft RFP
A discussion of 11 other problems including:
- The RFP template is out of date
- Failure to identify all external contributors to the RFP
- Failure to include definitions of key terms
- Failure to identify the complete technical environment
- Failure to provide adequate time for the RFP Process
- No Best and Final Offers
- Failure to provide a full record of interactions with vendors
- Lack of an adequate Proof of Concept
- Failure to provide a draft contract in the RFP
- Vendor’s attempt to ‘bait and switch’ proposed staff
- Failure to identify need for a training strategy and plan
Act 3 – Scene 1: The Newbie Checks in with the Director
Activities after Issuing the RFP
A discussion of the Pre-Proposal Vendor Meeting, how to respond to Vendor Questions, and the use of Technical Conferences to improve vendor proposals, and the use of an Evaluation Guide to formalize the process and demonstrate ‘fair and open’.
The Evaluation Process
A detailed discussion of the key elements of the Evaluation Process including:
- Briefing the Evaluation Committee – what to say and what to do
- Validating that each proposal is compliant – some rules and issues to consider before disqualifying a proposal
- The Evaluators work on the morning of day 1 – a description of how each evaluator reviews the first proposal and identifies required clarifications or establishes a preliminary score
The Evaluators work on the afternoon of day 1 – a description of how the Evaluators collectively asses the first proposal, scoring each factor and sub-factor, and identify issues requiring clarification
- Submitting Clarifications to the Vendors – how this is done
- Rescoring Each Proposal and Determining the short list – how this is done
- Completing the Proof of Concept – a discussion of the logistics of this step, how the scenarios are constructed and what to expect
- Rescoring the Proposals – the impact of the Proof of Concept on scores
- Costing – a discussion of some of the difficulties and issues faced by the Financial Analyst in determining the cost of each proposal
- Combining the Scores – how it’s done
- Best and Final Offers – how it’s done
- Finalizing the Scores – how it’s done
- Finalizing the Contract – A discussion of strategies for finalizing the contract. An approach that yields a signed contract from each of the short-listed vendors prior to announcing the winner.
Act 3 – Scene 2: Newbie Celebrates the End of the Project
The Voices of Experience
I asked some colleagues about the advice they would give to someone planning to acquire commercial off-the-shelf software using an RFP process. Here are their answers.
Appendices
62 pages of valuable reference material
1. Risk Management – Valuable but still neglected by procurement people
Identifies and discusses 5 major articles/resources:
- The Contract Manager as Risk Manager – National Contract Management Association
- Focus on Risk Management by Arthur J. Gallagher & Co.
- Chances are – The value proposition of risk management
- Project Risk Management Guidebook and Kit by Method 1 2 3
- Best Practices, State of California, Risk Management Plan
2. Five Best RFP Guides I’ve Found
Provides the names and web addresses
3. Five Best RFP Manuals
Summarizes the best features of RFP Manuals from New Mexico, New York State, and Federal Transit Administration
4. Searching the Web
Contains a description of an actual web search I conducted to become familiar with the software, the marketplace and a lot of previously unknown issues and problems related to an example of complex, commercial off-the-shelf (COTS) software. The example used was Business Process Management software. Identifies the actual results (resources) found:
- Books
- Actual RFPs and templates
- Articles
- Information providers
- Industry associations
- Comparison/evaluation services
- Consulting organizations
- Case studies.
5. Evaluation Guide
Sample (Exemplary) Guide developed by Atlantic Lottery Corporation and used as a model for other RFPs. Identifies:
- RFP Objective
- Evaluation Goal/Purpose
- Evaluation Charter Deliverables
- Project Scope
- Project Strategy and Process Flow
- Project Team Roles and Responsibilities
- RFP Evaluation, criteria and description
- Risk Management
- Quality Management
6. Negotiating Contract Terms and Conditions
A discussion by a lawyer specializing in public procurement of the different ways in which contract terms and conditions can be negotiated.
7. A Checklist of the Procurement Manager’s Responsibilities
Produced by Terry Davenport, author of New Mexico’s RFP Manual, this checklist deals with RFP Development and RFP Process.
