In the telecom industry, the RFP can serve as the means for purchasing equipment as well as the preferred path by companies and government agencies to obtain telecom services and maintenance agreements from telecom carriers themselves.

Although the circumstances and desired results will have a big impact as to the length, specificity, and detail of an RFP, there are certain points that you must consider when attempting to construct one that is effective.

To maximize the result and time spent on the RFP itself, be sure your RFP contains the following:

1) A Table of Contents
The organization of material contained within the RFP is best outlined in the beginning:the table of contents. Outline each area of the RFP in neat detail so that readers will be able to quickly scan content and understand exactly how the RFP has been organized.

2) A Situation Summary
This area provides the reader background information about your company or organization - the nature of the enterprise, size and scope, a brief history, ownership information, etc. as well as an overview of the current telecom systems and the reasons and concerns for making changes.

3) Required Rules of Response
An effective RFP will provide bidders with specific and concise terms under which they must respond. You will save alot of time and confusion by making this section of the RFP specific and detailed. In it, consider answering questions such as:

• When is the due date for proposals?
• To whom is the response to be delivered and how many copies are needed?
• What format should the response be in? What kind of supporting material will be needed?
• Who is the contact person for additional information or premises inspections if available?
• Are there any exceptions in the proposal and if so, to what degree will you accept?

4) Functional Objectives
An effective RFP should explain exactly what you wish to accomplish with the new system or service that is to be implemented AND what you expect it to do for you. It is in this “functional objectives” area that you will outline the needs analysis, operational considerations, traffic details, etc.

5) Specifications
Once you have outlined the functional objectives, you will need to state the specifics for which that objective can be achieved. This section can be generic in nature or very specific. When in doubt, try to be as specific as to the number, size, color, type, etc. to eliminate confusion.

6) Delivery and Installation
Here you will outline the location of the products and/or services to be delivered, connected and exactly when they must be operational. Technical installation requirements and any unusual scheduling considerations should also be included.

7) Documentation and Training
This section specifies the required physical labeling of components, circuits, terminations, etc. You may wish to consider requiring diagram layouts that identify the location of fixed equipment and/or all cable runs needed. Provision of installation and technical manuals, user instructions, and personnel training should also be included.

8) Warranties, technical service and maintenance
This section addresses the availability, terms, guaranteed response time, costs, etc. during the life of the contract. Specify bases for pricing (i.e. a purchase, 3 year lease, monthly lease, etc.) and any allowances (trade-ins, prompt payment, etc.) and rate guarantees. Strive to allow vendors to include complete information in this section so that the evaluation process is made that much easier.

9) Vendor information
Lastly, it is a good idea to create an opportunity (questionnaire) for vendors to provide information about themselves. Most will do so regardless, but may not address your questions thoroughly. A short questionnaire of information you require can be helpful when sifting through bidders.

After completing your RFP, put yourself in the vendors’ position. Is it clear and concise? Can you perhaps be more specific in any areas to avoid confusion? Less specific?

10) Contract Review
Overall, make your RFP easy for the vendor to understand and respond. Once you’ve made your decision, you’ll need to review the contract and check for the following items and make provisions for them if needed:

• A termination clause outlining penalties
• Network performance clauses
• Renewal clause that works for both parties
• An escalation clause in case things do not go as planned
• Business downturn or growth clause

Once you have finalized everything and signed the contract, you should be well on your way to a positive and lasting relationship with the chosen vendor or service provider.

Contributed by: TelCon Associates