gharris@convergencecable.com

Avoiding Assumptions

Protecting Client and Bidder in the Procurement Process With a Detailed RFP
by Chuck Siebuhr

Professional request for proposal (RFP) development can be, and usually is, the most critical aspect of the entire procurement process. Unfortunately, many do not recognize this fact until the project starts failing, which is, of course, always too late. A carefully conceived RFP is inarguably a recipe for protection. Detailed research and documentation in the initial phases of a project can and should assure protection from concept through completion for the client and the bidder as well as any other involved parties. In the final analysis, most projects that fail to meet performance and/or cost expectations were usually undertaken with superficial or certainly less than professional planning. Under these circumstances, without a detailed and formal plan of action including stringent checks and balances, failures can and will occur. A seemingly small, often overlooked detail can suddenly and unexpectedly produce a domino effect that has disastrous and extremely visible results.
"...most projects that fail to meet performance and/or cost expectations were usually undertaken with superficial or certainly less than professional planning..."

The various reasons that projects fail are innumerable, but the root cause is usually poor planning.

Commonly encountered examples include RFPs and/or designs produced by inexperienced project planners/engineers who are not conversant with current industry standards. Significant investments are expended on large projects and deserve the attention of professionals. The larger and more complex the project, the higher the costs and, therefore, the higher the risks.

A typical and often mistaken assumption is that a professionally developed RFP may consume too much time and expense to research and prepare. History repeatedly proves this to be untrue. It always costs more to correct problems and incur rework than to do it right the first time. Remedial activities have far-reaching implications, including not only the obvious cost of additional labor and materials, but penalties associated with missed deadlines, budget over-runs and potential contractual or legal liabilities. In addition, client satisfaction is ultimately sacrificed in the process, as well as any potential for future business relationships. In many instances, failed projects have resulted in lengthy court cases and substantial damages.


Perspective
The RFP process should be analyzed and understood from the perspective of both the client and originator (frequently a consultant) and the bidder (usually the contractor). In order to gain insight and a thorough understanding of the complete end-to-end process, it is essential to analyze both points of view. As a management tool, this knowledge can be used to shape a mutually beneficial arrangement that strongly resembles a partnership, rather than two entities with separate agendas. These are, after all, business transactions, and they should be fair and equitable for each entity, so both parties achieve a win-win that is so often vocalized and not so often realized. The advantages of forging such a working relationship are invaluable over the long term.


Small Installations
Admittedly, it would not be necessary or feasible to create a fully developed RFP for some smaller projects. Small, however, is a relative term. A system of 500 work area outlets (WAOs) may be large to some and small to others. As with any other sound business decision, all facets should be carefully weighed before committing or withholding resources. It is a judgment call. Some smaller projects may be efficiently implemented using a project mission statement or scope of work (SOW), if sufficient detail is included and the document is incorporated as part of the final contract. It should be noted that if it is not clearly defined in detail, it will not be properly executed. Leave no room for assumptions in either the SOW or RFP. As the sayings go, "If it isn't in writing, it doesn't exist," and "You get what you spec - not what you expect."

"Some client-generated RFPs are so loosely composed that they could be labeled, "Victim waiting for predator." Others are so tightly written and riddled with legalese that they could be labeled, "We dare you to bid this project."


Dotting "i's" and Crossing "t's"
The basic objective of the RFP is relatively straightforward: to simplify, standardize and regiment the procurement process. Unfortunately the path from concept to completion is rarely as direct as the objective and can have serious hidden penalties. It is not uncommon to have the bidder's response forms and the entire RFP included as part of the final contract. Therefore, every detail is important and must be considered carefully before issuing the RFP or submitting responses. If all of the "i's" and "t's" are not addressed in this phase, they will most likely be attended to and interpreted by an attorney at a later date. The last line of defense in any contract dispute, protest or challenge is the level of detail included in these documents. The more definitive the documentation, the better the defense for either group.

Details!
Some client-generated RFPs are so loosely composed that they could be labeled, "Victim waiting for predator." Others are so tightly written and riddled with legalese that they could be labeled, "We dare you to bid this project." Neither of these approaches is very effective as a project management tool and both frequently lead to arbitration, whether informal or formal. They certainly could not be used effectively as guides for the implementation of large, complex projects. A well-written professional RFP should be used as a guide as well as a model and reference source for all facets of the project. This type of RFP details the client's specific performance requirements and clearly indicates what is expected of the client and the bidder. Any area of the RFP that is left vague and undefined will most certainly be misinterpreted and laden with a$$umptions. The very foundation of any RFP is anchored in detail.


Is All of this Attention to Detail Really Necessary?
Yes, especially when selecting telecommunications systems, whether PABX cabling, LAN-data backbone or horizontal cabling. In larger projects, there is a tendency to focus on the big decision (as in which manufacturer or system to buy). Meanwhile, countless small decisions that should clearly define processes, evaluations, account-abilities, schedules and technical qualifications get overlooked.


Architecture
Architecture in the telecommunications industry usually describes system architecture, more typically referred to as hierarchies or topologies. There are certain similarities between a building's architecture and a system's architecture, inasmuch as no construction should begin without complete detailed plans and schedules. And, nothing should proceed without a solid, expertly designed and approved foundation. Since we do not (yet) have telecommunications inspectors, someone has to assume the responsibility of ensuring that all codes, standards, ordinances and regulations or restrictions are observed. These responsibilities may fall to the client or consultant, engineer/planner, building owner or, in some cases, the contractor/bidder, depending on how the RFP is written.
"Designing a telecommunications system to provision a campus requires construction experience and a diverse technical knowledge covering planning, design, media capabilities, performance limitations and an almost limitless variety of hardware and equipment."


Preparing the RFP
As mentioned, responsibilities will vary from RFP to RFP. Large corporations may be self-maintaining and have experienced registered designers on staff who will prepare the design and documentation. Other companies may elect to retain a consultant and publish the RFP seeking a turnkey solution, while some may contract out only the cabling portion or divide the implementation into separate phases. Each situation and each site is unique and must be treated as such if the desired results are to be achieved.

Preparing the RFP could be more correctly stated as "preparing to prepare the RFP." A great deal of thought and planning must go into the initial phase before making any committed decisions.

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  Chuck Siebuhr, RCDD, is senior technical editor for Cabling Business Magazine and an instructor at Cabling Business Institute. He has more than 30 years experience in the telecommunications industry. Siebuhr is a founding member of Association of Cabling Professionals (ACP), is a member of BICSI, and is listed in National's Who's Who of Honored Professionals and Executives, 1999-2000 edition.