Chapter 2 Needs Identification 1 1 1 1

Learning Objectives Review the project life cycle identifying needs proposing a solution performing the project terminating the project Focus on needs identification Identify needs and select projects Develop RFPs The proposal solicitation process 2 2 2 2 2

Real World Example Vignette: The Hippodrome Theatre Project The Hippodrome Theater in Baltimore Maryland opened in 1914 as a stop for vaudeville shows. It closed in 1980 due to lack of business The Greater Baltimore Committee (GBC) presented a plan to rebuild the theater and provide services to the surrounding neighborhood GBC won financial support from the state, city, an adjacent county, financial institutions, and private foundations The $60 million dollar renovation began in June 2002 Construction was completed on time. The Producers opened on February 10, 2004 3 3 3 3 3

Real World Example Vignette: Hospital Goes Wireless El Camino Hospital in Mountain View, California began offering high-speed wireless Internet access to patients and visitors in June 2004 because of long term dialysis treatments Three years ago, the hospital lost $13 million. In their revised strategic plan, they decided technology should become a major focus New technology at El Camino Hospital includes: PC’s and PDA’s for entering orders for patient care, voice over IP for all phones, two levels of security for the hospital’s internal database, new prescription drug order entry systems, and new inventory systems In addition to cost savings, new IT infrastructure: improves efficiency of patient care and increased productivity 4 4 4 4 4

Identifying Needs, Problems, or Opportunities Recognize a need, problem, or opportunity Clearly define the problem or need Quantify the problem Determine the budget Prepare a request for proposal 5 6 6 5 6

Project Selection Select the project(s) with the greatest benefit for the cost expended Develop a set of criteria against which each opportunity will be evaluated List the assumptions Gather data and information for each opportunity Evaluate each opportunity against the criteria

Preparing a Request for Proposal State, comprehensively and in detail, what is required, from the customer’s point of view Enable contractors or a project team to understand what the customer expects so that they can prepare a thorough proposal The need may be communicated informally—and sometimes only orally 6 10 10 6 10

Preparing a Request for Proposal (Cont.) Guidelines for drafting a formal RFP to external contractors: statement of work (SOW) customer requirements deliverables customer-supplied items approvals required by the customer type of contract 7 11 11 7 11

Preparing a Request for Proposal (Cont.) the payment terms the required schedule for completion instructions for the format and content of the contractor proposals due date for proposals evaluation criteria occasionally will indicate the funds the customer has available 8 14 14 8 14

Soliciting Proposals Methods: Identify a selected group of contractors in advance and sending each an RFP Advertise in certain business newspapers Process considered a competitive situation 9 17 17 9 17

Soliciting Proposals (Cont.) Don’t provide information that is not provided to all contractors May hold a bidders’ meeting to explain the RFP and answer questions Not all use RFP 10 18 18 10 18