PM FPX 5333 Assessment 4

Effective Proposal Evaluation for Nearlyfree.com’s Employee Orientation Project

Introduction

At nearlyfree.com, there is an ongoing effort in creating a new employee orientation program. Unfortunately, the effort currently existing had not been producing desired results. The problem will be addressed with the implementation of a comprehensive proposal review of its New Employee Orientation (NEO) program. This review will inform the choice of a potential supplier to ensure that all areas of the project are well covered for success. This report brings out the key requirements that need to be included in the proposal document for the new project.

Bidding Procedure

The bidding might be extremely competitive, and the decisions should be made with great caution. In order to determine the most suitable choice, Nearlyfree.com needs to be very specific while creating its Request for Proposal (RFP) to potential vendors. It is necessary to have realistic expectations, outline the scope of work, and establish standards of quality crucial to project success.

Solicitation

The initial task in requesting bids is the preparation of an informative letter or invitation to potential suppliers. The letter must contain details that will trigger suppliers’ interest. As advised by Loh (year), the letter must talk about “submission deadlines, a brief description of the purchasing requirement, and guidelines for preparing, organizing, and submitting a bid.” This avoids confusion and makes performance expectations clear. Additionally, the solicitation request must comprise “a sample contract, a copy of the approved purchase order, and sheets of general and special terms and conditions” (Loh, year). The inclusion of the offer submission form, which becomes legally binding once signed and returned by the supplier, is also crucial (Loh, year).

Procurement Document Analysis

Procurement involves the acquisition of goods and services with specific objectives for both parties (Kerzner, 2013). When initiating a project, the documents produced through the procurement cycle hold significant importance and directly impact project procurement management. There exist two generic methods of procurement: “Corporate” and “Project.” Corporate approaches can involve buying low volumes from several vendors, whereas project methods can involve sole-source buying because of some limitations or necessities (Kerzner, 2017). Following is a comparative overview of the four most widely used types of bid documents and their uses:

Characteristics of Procurement Documents

Procurement documents stipulate the official relationship between the supplier and the customer (Comptroller.texas.gov, 2010). They are essential organizational parts of the project process.

• Request for Proposal (RFP): An RFP is used when there exists a problem to be solved but is unknown. This official RFP document must be in accordance with strict procurement guidelines relating to content, timelines, and vendor submission (Khandelwal, 2015). It provides bidders with comprehensive project information so they can define their strategy and price. As much as the RFP process is costly and time-consuming, it is essential in cases of projects that demand extensive proposals. Large proposals usually contain discrete volumes dealing with costs, technical performance, management records, etc. Bidder hesitation will occur only in the case of very high proposal costs except where there is a high likelihood of winning (Kerzner, 2017).
• Invitation for Bid (IFB): Where requirements are clearly defined and the competitive sealed bid technique (Comptroller.texas.gov, 2010) is applied. The highly selective IFB process is used most by government agencies and large firms. Generally firm fixed-price with no negotiating, goes to the lowest bidder.
• Request for Quote (RFQ): Where the specifications are clear but further detail is needed regarding how suppliers are to deliver against the requirements specified. This type of approach is usually most frequently used for standard goods or familiar goods, i.e., office supplies (Comptroller.texas.gov, 2010). RFQ facilitates rapid pricing quotations on the part numbers and quantities supplied.
• Request for Information (RFI): An RFI is an initial-stage tool to obtain more information from vendors about their products and capabilities. It is typically followed by an RFQ or RFP to determine the products and services available in the market as well as the vendor’s capabilities (Comptroller.texas.gov, 2010).

Rationale for the Chosen Procurement Document

For the turnaround success of Project NEO, RFP has been chosen. This approach is based on the reason that the project specifications have yet to be ascertained, thus paving the way for RFP to be used in allowing the preparation of a wide scope of work and delivery schedules. Other forms like the RFQ and IFB are not applicable because of a lack of information. The RFP procedure will pave the way for bid questions and answers through the use of the RFI stage. The biggest risk is in hiring a vendor who does not meet your deadlines and budget, threatening the project. Nearlyfree.com can reduce this risk by carefully screening the bidders and obtaining a best and final offer of a firm fixed price after bidding and RFI. The contract must be inclusive and protected in terms of the desired aims of the project.

Proposal Evaluation

In order to make sure that Nearlyfree.com and the bidding companies both gain from the proposal, the evaluation criteria should be company-specific to its needs. An evaluation checklist can prove to be a useful tool in this regard, allowing the division of the project’s minimum requirements and evaluating each company on some criteria.

Sample Evaluation Checklist 

The checklist provides for ease of comparison from company to company and decision-making. If the suppliers seem to be identical, then the communication may need to be stepped up by one level in order to drive home certain points.

Avoiding Risks

Outsourcing a project entails risks. Nearlyfree.com can avoid risks of this nature by remembering the following points when assessing offers:

• Past Performance: This is extremely important in assessing the reliability of a supplier, although new suppliers will not have past information. Where this is the case, one has to ask widely about the capability of the supplier.
• Quality Rating: From past projects, this rating identifies the quality level of the supplier’s performance. For such suppliers who lack any comparable accounts, error rates, reliability, and timeliness can be used as alternatives.
• Delivery Performance: This measure indicates the extent to which a supplier delivers within a timely period as anticipated. Comparison of past projects and effective communication can identify this area.
• Contract Compliance: This feature will ensure the two parties are compliant with contract specifications. To avoid costly violations, Nearlyfree.com should partner with law experts to review and familiarize themselves with contract requirements.

PM FPX 5333 Assessment 4 Requisition, Solicitation, and Proposal Evaluation Madalyne Rutledge

Recommendations

Since experience is highly valued, it is recommended that a condition be included in the proposal that demands that suppliers present evidence of their experience. The proposal must also state the specific expectations and consequences of failure to comply. As a precautionary measure to safeguard its interest, Nearlyfree.com should follow bid solicitation requirements, issue calls for bids, and prepare for possible risks involved with suppliers. These steps will help make the right supplier choice to facilitate the successful recovery of the project.