REQUESTS FOR PROPOSAL

Using an RFP is a key element to a successful acquisition. An RFP is a legal bidding document in which the purchaser sets out the information needed to allow vendors to bid on the system or services being acquired. While RFP's are commonly used for many types of purchase, the RFP used in a technology acquisition takes on added importance. A technology RFP is far more than the usual bidding document. It is the roadmap to be followed by both vendors and purchasers for the balance of the acquisition.

Consultants know the technology. They are vital to an acquisition. However, for the most part, they are unfamiliar with ins and outs of contract law, commercial code, copyright law and other legal strategies by which an RFP can be used to obtain the lowest price and, at the same time, assure the vendors offer best solutions. At SM&R, the RFPs we help to create, usually result in lower prices for the acquisition, while doing much more. The RFP requirements and ground rules can be fashioned to help assure that the services or products needed by the purchaser 1) will be the most likely selection to meet the purchaser’s needs and, 2) at the same time, make use of the vendor’s superior knowledge of the products available for purchasers needs. No matter how good the IT staff or the consultants are, the outside vendors will know the market place better, because the vendors are in it everyday. A well drafted RFP can be used to force the vendors to fashion solutions which meets purchaser's needs and increases the odds of a successful acquisition for the lowest cost.

At SMR, we draft RFP ground rules which, among other things, can level the playing field, extend vendors’ warranties and assure that purchaser knows what it owns and what it doesn’t. Additionally, the art of negotiation is learned over the years. It requires both an intimate knowledge of legal issues and an understanding of purchaser’s needs. At SM&R, we have been successfully negotiating terms with vendors, often substantially larger and with more leverage than our clients. It is not enough to negotiate the technology details of the acquisition. The contract terms are vital, especially when the acquisition turns out to be less than promised.

SM&R is experienced in working as part of an acquisition team and is an advocate for the acquisition team concept. The additional cost of both a consultant and an IT lawyer is minimal compared to the potential dangers of an unsuccessful acquisition.

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