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: Verizon Information Services
Needed an ad agency to handle the estimated $30 million to $50 million Yellow Pages business
They developed an RFP and issued it to 15 select companies. Proposals were due back within a month.
They were looking for someone who could take the brand to the next level.
The winning bidder is expected to use TV, radio, print, direct marketing, interactive, and ethnic marketing. 3 3 3 3 3

4. Real World Example Vignette: The National Security Agency
The super-secret communications intelligence arm of DOD recently announced plans to open its doors to industry with a Request for Proposal.
The RFP is for a contract to outsource the majority of its non-mission-critical IT infrastructure.
Major functions include: PC installation and maintenance, services, and help desks.
The 10-year, $5 billion initiative is called Project Groundbreaker. 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
Select the project(s) with the greatest benefit for the cost expended 5 6 6 5 6

6. Project Selection
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