We deal with RFP’s on a regular basis at our firms and we were surprised recently when we were asked the question “What is an RFP?” An RFP (or Request for Proposal) is a solicitation by a company seeking goods or services from prospective vendors. The term can encompass both the RFP solicitation process and the RFP document, which is the tool used for soliciting proposals. Variations on RFP’s include the RFI (Request for Information) and the RFQ (Request for Qualifications), which are typically less involved and can be issued before an RFP to cull the herd of prospective suitors. An RFP is the most basic way of soliciting responses from vendors that will provide information to allow companies to decide who the best candidate is and what is the best approach for their project or engagement. A well designed RFP provides benefits in planning for the organization issuing the RFP, and gives the authors an opportunity to define the scope of the engagement or project in the fashion best suited to their needs. The RFP should not be too tightly scoped, however, because there is some benefit in leaving enough latitude for responders to provide creative suggestions in their responses.
There are two roles of an RFP – requestor and responder. The requestor is the party seeking the services (client) and the responder is the party that is submitting to bid to perform those services (vendor / supplier).
In the law firm environment, we often find ourselves in both roles; responding to RFP’s from clients and prospective clients for legal services as well as issuing RFP’s to prospective vendors in the technology and other operational arenas. Law departments also issue RFP’s to prospective vendors in technology and operational areas and as well as issuing RFP’s for legal services. They often work in conjunction with the company-wide procurement functions on these RFP’s.
Several parties can be involved in an RFP process from the issuer perspective
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Sponsor – The person with purchasing authority who is tasked with solving the issues explained in the RFP. The RFP is typically sent in their name.
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Stakeholders – Other members of the organization who will benefit from the RFPs solution.
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Subject matter experts and technical resources – Involved in writing, answering questions and providing response evaluation to the sponsor regarding the RFP.
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Vendors /Suppliers – Even though they may be bidding on the project, vendors are a good resource to gather information about a particular product or service to include in an RFP.
Several parties can also be involved in the RFP process from the responder perspective:
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Relationship point of contact – Typically handles direct communications with the RFP issuer and submits the final RFP. Often this is a sales representative or a law firm partner.
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Subject matter experts– Provide support for the point of contact by providing writing of the RFP responses and information related to pricing and strategy. They often also generate follow up questions.
While RFP’s for technology and operational vendors have been common at many law firm and law department for quite some time, RFPs for legal services have only recently achieved widespread use. According to a recent BTI Consulting Group survey, 56% of corporate counsel respondents issued RFP’s in 2015. Over the next several months we will explore in detail the people, process and supporting technology around RFP’s for legal services. We will include a variety of insights from law firms and law departments large and small.
Co-Written by Angel Gonzalez and Justin Hectus