1. Chapter 2 Needs Identification1 1 1 1

2. 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

3. 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

4. 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

5. 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

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

7. 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

8. 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

9. 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

10. 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

11. 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