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REQUESTINGPROPOSALS
Many companies that do not have the in-house capacity to survey, specify, and carry out a comprehensive lighting upgrade project turn to outside consultants, vendors, or contractors. This document briefly explains how to request proposals and quotations. In addition, two sample Request for Proposal documents are included.
KEY TERMS
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A Request for Proposal (RFP) or Request forQuotation (RFQ) must communicate all importantinformation needed to bid a project.
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An RFP asks for a
proposal 
of work.
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An RFQ asks for a
quotation 
for work.
PURPOSE
If you don’t have the in-house capability to supportyour lighting upgrades, you can solicit contractorassistance using one of two methods: a Request forProposal (RFP) or a Request for Quotation (RFQ).You can use either to give important information abouta potential project to prospective bidders. The morecomprehensive the request, the more accurate andcomplete the bid will be. While there are manysimilarities, the purposes of the RFP and RFQ aredifferent.
RFP
An RFP is an invitation for bidders to propose aproject. The RFP may ask the bidder to propose oneor more the following:
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specification of the scope of work
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material specifications
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financing options or terms
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performance guarantee
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extended warranty or maintenance terms
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project priceIn short, the RFP is a request for bidders to identifyboth the scope of work and the cost to complete thework. The successful bidder wins the project based onthe quality of the proposal and the price.
RFQ
An RFQ is an invitation for a bidder to
quote 
a price fora project specified by the building owner. Identifyingthe scope and specifications of the project occursbefore the RFQ is issued. The successful bidder isgenerally awarded the project based on cost and theowner’s confidence in the bidder’s capabilities.
CONTENTS
KEY TERMS.............................................................1PURPOSE................................................................1ITEMS TO INCLUDE................................................2TYPES OF RFPs AND RFQs...................................3SAMPLE RFP#1.......................................................4SAMPLE RFP#2.....................................................19
Requesting Proposals
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Lighting Upgrade Manual
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EPA's Green Lights Program
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July 1994United StatesAir and RadiationEPA 430-B-95-016Environmental Protection6202JJuly 1994Agency
 
2
ITEMS TO INCLUDE
An effective RFP or RFQ should contain all projectinformation needed for the bidder to complete aproposal. Typically, you would include the followingsections in an RFP or RFQ.
Timetable
A timetable highlights important dates and deadlines.
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dates for pre-bid meetings
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schedule for site visits
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due date for the bids
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date that work may begin
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date for project completion
Scope of Work
In this section of an RFP or RFQ, you define theservices to be performed by the bidder. Thedescription of work should be clear and concise toeliminate confusion. For example, the bidder shouldbe provided with the size, location, and number ofbuildings included in the project. A typical scope ofwork contains the following:
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goals and objectives of the project
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restrictions and preferences for equipment
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reminders of applicable laws
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instructions for disposal of obsolete equipment
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target values for variables such as watts persquare foot, internal rate of return (IRR), or sharedsavings terms
Bidding Procedure andInstructions
You should provide specific instructions about the time,location, and format of the bid. Minimum bidderqualifications, if any, should be described, and mostinstructions specify a date when the selected bidder willbe notified.To ensure that complete information is provided by thebidders, an RFP or RFQ usually contains forms to becompleted by the bidders. On these, the bidderidentifies previous projects, staff, and other informationthat helps you choose the best bidder for the project.The following items are often requested on theseforms:
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key project participants and their resumes
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subcontractors
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previous projects
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references
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other support and resources availableA contact person and phone number should also beincluded to allow bidders to call with any additionalquestions.
Selection Criteria
To assist bidders in identifying information that isimportant to you, the RFP or RFQ should include adescription of the award criteria. This description mayinclude listing the selection factors and the relativeimportance of each to the decision.
Financing Methods/Payments
Any financing method should be outlined in the RFP.If you desire a shared savings contract, for example, itshould be outlined in this section. (Refer to
Financial Considerations 
a section of the
Lighting Upgrade Manual 
for more information about financing methods).Likewise, if you desire a specific payment schedule andmethod, it should be explained in this section.Additionally, you should say how the bid will bedispersed (e.g., lump-sum, unit-price).
General Conditions
You should also include a section addressingcontractual issues and details, such as contractchange procedures and guarantees. Other itemsaddressed in this section include the following:
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insurance or worker’s compensation
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cleaning
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samples and/or demonstration installations
Requesting Proposals
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Lighting Upgrade Manual
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EPA's Green Lights Program
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July 1994
 
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TYPES OF RFPs and RFQs
No two RFPs or RFQs are the same, because eachproject is different and has unique characteristics andobjectives. General categories of RFPs and RFQs aredescribed below.
Request for Quotation, Consulting Only
This RFQ is intended for soliciting engineering anddesign services for a project, but does not includeinstallation. As an example, the bidder responding tothis RFQ develops a proposal to design an upgrade,provides equipment specifications, and provides aneconomic analysis.
Request for Quotation, Installation
This RFQ solicits a quotation for installation only. Thescope of work for the upgrade is already defined, soengineering and design issues are not addressed. Theproposal requires estimates of labor and materialcosts, rather than other estimates (e.g., IRR, watts persquare foot, illuminance).
Request for Quotation, Financial
This RFQ solicits financial analysis. To ensure theprofitability of a project, you may request bids on suchitems as initial investment, IRR, simple payback,rebates, and other financial analyses. Again, thescope of the project is already defined, and theengineering and design issues are not addressed.
Request for Proposal, Design and Build
This RFP solicits proposals for the design andinstallation of the lighting upgrade. A company bids onall facets of the upgrade: survey, analysis, design, andinstallation. In contrast to RFQs, this approach coversan entire project, from start to finish.
Request for Proposal, Shared Savings
Similar to the Design-and-Build RFP, this RFP coversan entire project; however its initial cost framework isdifferent. In this case, the future energy cost savingsare shared between you and the bidder. The bidderfinances the initial cost and receives some of theenergy cost savings as compensation.
Request for Proposal, GuaranteedSavings
In a Guaranteed Savings RFP, the bidder alsoproposes the entire project, but it includes an additionalfinancing burden. Here, the bidder assumes the risk ofthe investment and guarantees a minimum periodicsavings. The proposal specifies financing andguaranteed energy cost savings, protecting you fromrisk.
Combinations
An RFP or RFQ may consist of any combination of theabove.Sample documents follow.
Requesting Proposals
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Lighting Upgrade Manual
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EPA's Green Lights Program
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July 1994
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