Proposal and Request For Proposal

REQUEST FOR PROPOSAL (RFP) AND TENDER
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Dr. Faheem Qaisar Jamal, School of Industrial Engineering (SIE), CAE, NUST
LEARNING OBJECTIVES
• What is Project Proposal?
• How to write and forward Request for Proposal(RFP)?
• Use and contents of RFP
• Use and contents of Proj Propsal
• Evaluation of Proj Proposal
• RFP Vs Tender
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PROJECT PROPOSAL
• A project proposal is a project management document that’s

used to define the objectives and requirements of a project. It
helps organizations and external project stakeholders agree on
an initial project planning framework.
• The main purpose of a project proposal is to get buy-in from
decision-makers. That’s why a project proposal outlines your
project’s core value proposition. It sells value to both internal
and external project stakeholders.
• The intent of the proposal is to grab stakeholder and project
sponsor attention. Once you have people’s attention, the next
step is getting them excited about the project summary
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IMPORTANCE OF PROPOSAL
A proposal is a major tool by which a service company

secures new business.
A Successful proposal meets two primary criteria:

1) The proposal is approved by the customer’s review
process
2) The proposal is executable as specified
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REQUEST FOR PROPOSAL (RFP)
A request for proposal (RFP) is a document that

an organization posts to obtain bids from
potential vendors for a product or service or a
project.
For example, a new business or a business moving

from a paper-based system to a computer-based
system might request proposals for all the
hardware, software, and user training required to
establish and integrate the new system into the
organization.
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RFP RESPONSE TIME
The Typical Response time allotted in most RFPs

is two weeks.
This is relatively a short amount of time when

one considers the significant amount of work
that must be accomplished.
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WITHIN RFP RESPONSE TIME
 The information in the RFP must be fully understood

 A strategic approach must be developed and
estimated (schedule and cost)
 The approach must be clearly articulated (expressed)
 A sales theme must be woven throughout the text of
the proposal
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1. LOI
Quality cum Cost-Based

Selection (QCBS) – Evaluation based on
the cost committed by the bidder and the
technical qualification of the bidder.
Quality-Based Selection (QBS) –

Evaluation based on the technical
qualification of the bidder.
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2. ITC
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2. ITC
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2. ITC
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2. ITC
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2. ITC
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2. ITC
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2. ITC
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2. ITC
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2. ITC
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2. ITC
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2. ITC
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2. ITC
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2. ITC
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3. ITC
Data Sheet
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3. ITC
Data Sheet
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3. ITC
Data Sheet
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3. ITC
Data Sheet
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3. ITC
Data Sheet
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4. TOR
The Terms of Reference (ToR) is the document that

serves as the basis of a contractual relationship between
the commissioner of a program and the team(s)
responsible for carrying out the work.
It’s where the mission and scope are outlined; where the
issues to be addressed and the desired outputs and
outcomes are defined; and where timeframes, key
meetings, resources and reporting guidelines are
detailed.
As such, it’s a crucial opportunity to set out expectations
for responsive feedback from the very beginning.
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MINIMUM CONTENTS OF A TOR 4. TOR
• Duty Station
• Project Title
• Qualification of the Successful
• Project Description
Contractor
• Scope of work • Scope of Bid Price and Schedule of
• Expected outputs Payments
• Institutional Arrangements • Recommended Presentation of
• Duration of the Work Proposal
• Annexes to the TOR
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Gen and Special Conditions of Contracr 5 & 6.
GCC & SCC
The General Conditions of Contract (GCC) form part of all public bid
documents and no one can amend them. They allow for Special
Conditions of Contract (SCC).
If you want to do business with the public sector, you often have to
agree to them.
You’ll find that private sector customers use different names for
theirs, but the effect is the same. All these conditions of contract
favour the customer and place many obligations on you, as a vendor
of goods or services.
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Gen and Special Conditions of Contracr 5 & 6.
GCC & SCC
• Both sets of conditions are legal in nature, meaning that

they deal with issues such as warranties, intellectual
property, breach and termination.
• The customer requires you to accept both, and will
disqualify you if you don’t.
• They are both very one-sided in the customer’s favour
and place many obligations on you.
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Gen Conditions of Contract (GCC) 5 & 6.
GCC & SCC
The General Conditions of Contract apply to each Request for

Proposal (RFP), Request for Bid (RFB) or other requests for
proposals or quotes (RFPs or RFQs) that the government (public
bodies). They contain the general legal terms that will apply to
the contract that comes into places when the government
awards you the opportunity
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Special Conditions of Contract (SCC) 5 & 6.
GCC & SCC
These conditions are different in a very important way. Unlike

the General Conditions of Contract, they don’t apply to each
and every government request for proposals or quotes (RFPs or
RFQs). They are the conditions that are unique to a particular
request for proposals or quotes (RFPs or RFQs). There are
important similarities that you have to be aware of:
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7. Std
Forms
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7. Std
Forms
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RECOMMENDED PROPOSAL FORMAT
1. Introduction
2. Background information
3. Objectives
4. Technical approach
5. Scope of work
6. Project team and related experience
7. Schedule
8. Costs
9. Assumptions and terms and conditions
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1. Executive Summary
The executive summary provides a quick overview of the main elements of your project
proposal, such as your project background, project objectives, project deliverables, among
other things. The goal is to capture the attention of your audience and get them excited about
the project you’re proposing. It’s essentially the “elevator pitch” for the project life cycle. It
should be short and to the point.
The executive summary should be descriptive, and paint a picture of what project success
looks like for the client. Most importantly, it should motivate the project client; after all, the
goal is getting them to sign on the dotted line to get the project moving!
2. Background Information
The background information provides the opportunity for the service company to demonstrate
its understanding of the project. Additionally this section should call out any gaps in data that
will need to be addressed by the detailed scope of work, enabling cost effective completion of
the project.
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3. Objectives
This section is used to restate the objectives as identified by the customer and
more importantly, to state the long and short term objectives for the project as
identified by the company.
4. Technical Approach
The technical approach presents the basic strategy that has been developed in
order to meet the objectives.
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5. Scope of Work
The scope of work provides a discussion of the details of how the technical
approach will be implemented.
6. Project Team
This section provides the company with the opportunity to introduce the selected
personnel and their experience on related projects.
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7. Schedule
The schedule section of the proposal should present the duration of the project and
various tasks, while showing how these tasks are linked and interdependent.
8. Cost
This section should illustrate the cost of the various tasks, the cost of the project as
a whole, and the cumulative cost over time curve.
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9. Assumptions and Terms and Conditions

Provide the boundaries for the project scope of work. This section tightens up the
details of the scope of work and, if well written, protects both the company and the
customer.
Note that the assumptions are typically developed and

recorded throughout the planning of the project, whereas the
terms and conditions are often based on company policy.
Propsal Template
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TYPES OF PROJECT PROPOSALS
1. Solicited Project Proposal
A solicited project proposal is sent as a response to a request for
proposal (RFP). Here you’ll need to adhere to the RFP guidelines of
the project owner.
2. Unsolicited Project Proposal

You can send project proposals without having received a request for
proposal. This can happen in open bids for construction projects,
where a project owner receives unsolicited project proposals from
many contractors.
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3. Informal Project Proposal
This type of project proposal is created when a client asks for an
informal proposal, without an RFP.
4. Renewal Project Proposal
You can use a renewal project proposal when you are reaching out to
past customers. The advantage is that you can highlight past positive
results and future benefits.
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5. Continuation Project Proposal
Sent to investors and stakeholders to communicate project progress.
6. Supplemental Project Proposal
This proposal is sent to investors to ask for additional resources

during the project execution phase.
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KEY OPERATIONAL AND STRATEGIC QUESTIONS
TO CONSIDER WHILE WRITING PROJ PROPOSAL
• Triple Constraint: How can we address the triple constraint of project scope, schedule and cost?
• Core Problem: What is the core problem we’re trying to solve?
• Resources: What resources will be available?
• Timeline: What project timeline are we working within?
• Budget: What project budget do we have to work with? How does this affect our goal setting?
• Strategic Goals: What are the strategic goals of our client, and how does our proposal align with
those goals?
• Responsible Parties: Who are the people responsible for the project? What are their goals and
motivations?
• Client Benefit: How will the client benefit from the completion of our project? What is their primary
goal?
• Project Deliverables & Success: How will success of the project be measured? What deliverables do
our stakeholders expect to see at closure?
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DEVELOPING SMART GOALS FOR YOUR
PROJECT PROPOSAL
• Specific – Make sure your goals and objectives are clear, concise and specific to the task at hand.
• Measurable – Make sure your goals and objectives are measurable so it’s obvious to see when
things are on track and going well, and conversely, when things are off track and issues need to
be addressed. Measurable goals make it easy to develop the milestones you’ll use to track the
progress of the project and identify a reasonable date for completion and/or closure.
• Attainable – It’s important every project has a “reach” goal. Hitting this goal would mean an
outstanding project that goes well above and beyond expectations. However, it’s important the
project’s core goal is attainable, so morale stays high and the job gets done with time and
resources to spare.
• Relevant – Make sure all of your goals are directly relevant to the project and address the scope
within which you’re working.
• Time-Based – Timelines and specific dates should be at the core of all goals and objectives. This
helps keep the project on track and ensures all project team members can manage the work
that’s ahead of them
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PROPOSAL IS A PROJECT
Developing a proposal is a project in itself. This idea can clearly be

seen by the definition of a project.
Developing a proposal involves the completion of a series of tasks

which have their objective the submission of a successful proposal.
There is a defined scope of work for the completion of the

proposal, which involves determining the technical approach,
developing a work breakdown structure, designing a network
schedule, estimating costs, and the actual writing of the proposal.
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These tasks must occur within a schedule for completion as defined by the RFP.
There is a definite cost for preparing a proposal, such as the base salary of the
personnel working on the proposal and the cost of the materials, equipment and
subcontractors.
Although many companies neglect to consider the cost of proposal preparation,

prudence requires developing a budget for proposal preparation and tracking
preparation costs.
Finally, resources are required for completion of a proposal, many of which are
limited.
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PROPOSAL COST
A general rule of thumb is that the cost to prepare a proposal

should not be more than 10% of the estimated gross cost of a
project.
(cost refers to the amount that will be incurred by the service

company in completing the project, not the price the customer will
be charged)
The net profit will be maximized when the cost to produce a

winning proposal is approximately 7% of the estimated gross cost of
the project (one author’s work).
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RFP VS TENDER NOTICE
A tender is an offer to do work or supply goods at a fixed

price.
An RFP is used when the purchaser is looking for the best value
solution to resolve a problem or to deliver a good or service, but is
not exactly sure how to achieve it.
A tender notice is used when the purchaser knows exactly what

good or service they want and is looking for the best price to
deliver it.
Difference b/w RFP and Tender Sample Tender Sample RFP 1 Sample RFP 2
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Assignment 1
All MS students have been divided into groups. Consider your relevant allotted
group project
You have been appointed as Project Manager of the subject task. You are
required to prepare a “Request for Proposal” and in reply to that request
for proposal prepare a “Proposal” against your relevant group project
Submission Date : November 08, 2022

Late submission will carry -2 marks per day out of total 10 marks.
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Thank You
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REQUEST FOR PROPOSAL (RFP) AND TENDER

• What is Project Proposal?

• How to write and forward Request for Proposal(RFP)?

• Use and contents of RFP

• Use and contents of Proj Propsal

• Evaluation of Proj Proposal

• A project proposal is a project management document that’s

A proposal is a major tool by which a service company

A Successful proposal meets two primary criteria:

A request for proposal (RFP) is a document that

For example, a new business or a business moving

The Typical Response time allotted in most RFPs

This is relatively a short amount of time when

 The information in the RFP must be fully understood

Quality cum Cost-Based

Quality-Based Selection (QBS) –

The Terms of Reference (ToR) is the document that

• Both sets of conditions are legal in nature, meaning that

The General Conditions of Contract apply to each Request for

These conditions are different in a very important way. Unlike

9. Assumptions and Terms and Conditions

Note that the assumptions are typically developed and

2. Unsolicited Project Proposal

4. Renewal Project Proposal

Sent to investors and stakeholders to communicate project progress.

6. Supplemental Project Proposal

This proposal is sent to investors to ask for additional resources

Developing a proposal is a project in itself. This idea can clearly be

Developing a proposal involves the completion of a series of tasks

There is a defined scope of work for the completion of the

Although many companies neglect to consider the cost of proposal preparation,

A general rule of thumb is that the cost to prepare a proposal

(cost refers to the amount that will be incurred by the service

The net profit will be maximized when the cost to produce a

A tender is an offer to do work or supply goods at a fixed

A tender notice is used when the purchaser knows exactly what

Submission Date : November 08, 2022

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