RFP Process Guide

Navigating the RFP Process A Request for Proposal can be a useful tool in selecting a Relocation Management Company (RMC). When done correctly, it allows your company to compare services, culture and pricing among various relocation providers in an efficient format. This guide has been created to assist you in the process.

Navigating the RFP Process What Type of Request Do I Need?

RFI Gathers information usually to narrow the supplier field. Does not request pricing. Is not an invitation to bid.

RFP

RFQ

Invites suppliers to submit business proposals. Usually has detailed questions that will allow comparisons between suppliers.

A process to invite suppliers to bid on a specific good or service.

Often used when price is the only factor.

Navigating the RFP Process STEP

1

Create a Project Plan

Form a Mobility Selection Team

This will usually consist of Senior Management, Procurement, Human Resources, Payroll, Information Technology and Legal.

Make sure all the company’s stakeholders are included. Identify each team member’s role and responsibilities.

Distinguish between what your company wants and what it needs. Consider your relocation program’s history. Research current best practices and trends. Why are you going out to bid?

Do Your Homework Is this to check market pricing, due to quality issues with your current supplier or is this just a bid cycle? All stakeholders should express their vision for their new relocation service provider.

What Will The Winner Look Like

Create a scoring matrix. Weight each question in your questionnaire based upon key selection criteria. Determine which questions are most important to your company.

Project Timelines

Establish milestones and assign a projected timeline for each stage. Laying out the process from start to finish is critical. A well thought out plan can save you a lot of time and money. Determine who is responsible for each task. An effective process will usually have a six month timeline from initiation to implementation.

Navigating the RFP Process STEP

2

Creating the RFP

Description of Your Organization

Provide your corporate information. Include information on why are you going out to bid and what key characteristics you are looking for in the new provider. Why would they want to partner with your company?

Scope of Work

List your current relocation policies and allow for recommendations. Furnish historical data about your program.

Describe your mobility program objectives. What services are you looking to outsource? How many employees do you relocate each year? Breakdown this information by domestic and international, homeowner, renter and lump sum. Provide information about any tiered policies. What are your primary relocation/assignment locations? What is the average relocation home value? It is important to provide as much detail as possible to eliminate assumptions on the part of the supplier.

Organize the Questionnaire

Key sections of an RFP typically include: Company Information, Account Management, Service Delivery, Domestic Services, International Services, Technology, Reporting, Expense Management, Supplier Management, Implementation, Client References and Pricing. If your company is experiencing specific problems with their current provider, be sure to address those to see if a new provider can offer a solution. Remove repetitive questions and those that do not apply to your program.

Navigating the RFP Process STEP

2

Creating the RFP (cont'd)

Award Criteria

Let potential suppliers know how you will be choosing who is invited to deliver a best and final presentation and how the eventual supplier will be selected.

Timelines

Be realistic when you set deadlines. The more questions your RFP contains, the more detailed the required response will be and the longer the time it will take suppliers to reply. Remember to factor in weekends, holidays, internal vacations or travel schedules and the time it will take your team to meet, evaluate and score proposals. This will provide the timeline that you give to bidders regarding how long the RFP evaluation process will take, when the bidders will be notified of their selection in moving forward and when you expect implementation to begin. Provide a contact for all supplier questions. All other team members should not meet or speak to potential suppliers during the RFP process.

Decide Who Will Receive The RFP

Not all RMCs are created equal. Performing a pre-screen RFI is one way to determine if a provider offers the services to meet your organization’s needs. Through the RFI process, you can narrow your potential supplier list to 4 or 5 bidders, considerably narrowing down the volume of information you receive from your RFP.

Navigating the RFP Process STEP

2

Creating the RFP (cont'd)

Decide How To Send Out The RFP

STEP

3

What format do you want your RFP to be sent? How should responses be submitted? Options include: online supplier portal, Word or Excel. If utilizing an online portal, be mindful of restrictions. Setting character limits, word counts or stipulating the type of response may prohibit prospective suppliers from giving an appropriate and in-depth response. Whatever format you choose, keep in mind that the purpose of the RFP is to compare Relocation Management Companies. The services and pricing scenarios are much different than purchasing commodities. Choose a format that will allow you to receive the best responses and will be easy to collect and distribute among the selection team. Decide whether responses should be sent as a hardcopy submission or electronically. Today, most companies request electronic submissions.

Evaluation & Selection

Review & Scoring

The selection team should score responses based on the scoring matrix created during the planning stage. Once completed, gather all team members results and do a cost analysis.

Navigating the RFP Process STEP

3

Evaluation & Selection (cont'd)

Check References

Once the list of possible providers has been narrowed, conduct telephone interviews with the provided references. Discuss all aspects of the supplier’s performance. Remember that no vendor is perfect all the time so keep in mind that how a supplier addressed issues or challenges is key. Always check references as part of your decision making process.

Schedule an on-site visit and presentation with your top 2-3 choices. Give presenters adequate time to make travel arrangements. This is your opportunity to meet the account team and ask in-depth questions. Ask presenters specifically what they can do for your company. This is your chance to get a feel for a On-site Visits/ supplier's culture and the fit of your organizations. One supplier Final Presentations may look perfect on paper, but if there is not cultural alignment, you are better off selecting a different provider. See demos and sample reports, discuss implementation expectations – any additional information that will give you a clear picture of the working relationship with each potential vendor.

Awarding the Contract

Before notifying the selected supplier, it is important that you call the suppliers that were not awarded the contract. An explanation of why they were not awarded the business is especially helpful and appreciated. Be honest in your evaluation and your feedback.

Navigating the RFP Process Sample RFP Timeline

Aug Aug 25 - RFP Distribution Aug 29 - Supplier Confirm Intent to Bid

Sept Sept 3 - Supplier Questions Due Sept 8 - Replies Back to Suppliers Sept 24 - RFP Responses Due by 5:00 PM CST

Oct Oct 15 - Best and Final Offer Presentations Oct 22 - Supplier Selection/Contract Negotiation Oct 29 - Dec. 31 Jan 1 - Initiations Begin Implementation

Jan

Navigating the RFP Process Mistakes to Avoid Inadequate Planning

Inaccurate Volume

Pre-RFP planning is a critical element of the process. Neglecting to take the necessary time to properly map out the entire RFP process from start to finish can cost your company time and resources and delay implementation of your mobility program.

Pricing in the relocation industry is based upon volume. Pricing models are typically based on a mix of service fees, referral fees and booking commissions. Accurate volume estimates will ensure you receive appropriate pricing in your responses.

Impractical Timelines

Focusing on Price

Setting a reasonable timeline can make the difference between receiving a thoughtful, customized response and a rushed response.

Allowing time for a tailored response and review will prevent costly decisions.

Remember that relocation is a service business. The total value of the service cannot be broken down to fee alone. If you are focused only on price, you could be be hindering your ability to partner with the RMC that can provide you the best solution.

Not Providing Policy Information to Bidders

Misunderstanding Your Company’s Needs

Policy information allows vendors to prepare responses customized to meet your company's individual needs. Vague information will generate vague responses which will make it difficult to properly evaluate if a supplier can meet your business needs.

Performing adequate due diligence is necessary to create a whole picture of how relocation touches various departments within your company. Each provider will have different strengths. Have a clear picture of what a RMC needs to bring to your mobility program.

Navigating the RFP Process Creating and responding to RFPs is a major investment for both the client and the supplier so it is extremely important to allot enough time and resources to the process to ensure a successful outcome. Establishing a quality method to manage a cost effective and time sensitive bid process will help you chose the best partner for your company's mobility program.

About Paragon Relocation Paragon Relocation is the premier partner of choice in the global relocation management industry providing innovative programs, value-added support, superior customer service and thought leadership to our clients and the families we relocate. Our mission is to provide an extraordinary customer experience, one family at a time.

Paragon Relocation has been providing relocation services for 28 years and offers services in 150 countries.

For further information, please visit www.paragonrelocation.com.

Contact Paragon Relocation with any questions or for more information. w: www.paragonrelocation.com e: info@paragonrelocation.com