ITEC411 Assignment 3 1. What is outsourcing? List five reasons why organizations outsource? When should an organization choose not to outsource? Outsourcing is when an organization acquires goods and/or sources from an outside source. Reasons to seek outsourcing: • Gain access to resources it doesn't have. • Reduce costs. • Allow temporary use of resources when they are needed • Increase accountability with contracts Organizations should not choose to outsource, because they could lose the project control, depend too much on supplier products, and risk exposing of information which might not be beneficiary for the organization. 2. What is an RFP? What is its purpose? Who prepares/issues the RFP? RFP is a document provided to vendors to ask them to propose hardware and software systems that will meet the requirements. If you decide that new hardware or system software is a strong possibility, you may want to issue a request for proposal (RFP) to vendors. The RFP will ask the vendors to propose hardware and system software that will meet the requirements a new system. 3. Identify and describe the components/sections that should be included in a typical RFP. ➢ RFP includes the following: - 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 needs may be communicated informally and sometimes only orally. ➢ Guidelines for drafting RFP for external contractors: • Statement of work (SOW) • Customer requirements • Deliverables • Customer-supplied items • Approvals required by the customer • Type of contract • Payment terms • Required schedule for completion • Instructions for format and content of proposals • Due date for proposals • Evaluation criteria • Sometimes customer will indicate funds available 4. What is an RFQ? How is it different from and RFP? An (RFQ) is issued when an organization wants to purchse something and chooses to make the specifications available to many other companies so they can submit competitive bids, in other words, customer issued solicitation for contractor/vendor to supply specific products or services. Unlike RFP which is a document that an organization posts to bring out bids from potential vendors for a product or service. 5. What is the response to an RFP? What is its purpose? Who prepares/submits the response? The vendors provide a response to each submitted RFP, so the qualified bidders would know what must be included to satisfy these submitted requirements. 6. Identify and describe the components/sections that should be included in a typical response to an RFP. A typical response to an RFP should include:  Technical Section ✓ Understanding of the problem ✓ Proposed approach or solution ✓ Exception – variation from specified requirements ✓ Benefits to the customer  Management Section ✓ Description of work tasks ✓ Deliverables ✓ Project schedule ✓ Project organization ✓ Related experience ✓ Equipment and facilities  Cost Section ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Labor Materials Subcontractors and consultants Equipment and facilities rental Travel Documentation Overhead Escalation (cost increases) ✓ Contingency or management reserve ✓ Fee or profit 7. Analyze the RFP available at: http://www.cityofpaloalto.org/civica/filebank/blobdload.asp?BlobID=10469 (.pdf is attached to assignment in BB if link does not work) - Evaluate it according to the RFP requirements discussed in class. -State good points, bad points, and any comments you might have from the bidder’s point of view. The RFP was stated comprehensively and in detail, it includes the following: o Customer requirements o Deliverables o Customer-supplied items o Approvals required by the customer o Type of contract o Payment terms o Instructions for format and content of proposals o Due date for proposals o Evaluation criteria o Sometimes customer will indicate funds available It consists of Section, Scope and agreement for services. ➢ The RFP included proposed RFP timeline showing ✓ RFP Issued ✓ Pre-Proposal Meeting ✓ Deadline for Questions, Clarifications ✓ Proposals ✓ Bidders Notified of Shortlist Status ✓ Finalists Identified ✓ Contract Awarded ❖ Which is important to list due date for proposals. ➢ Some of the bad points were:  The attached document was more like technical report, while it’s supposed to be a selling document.  No factors were highlighted to differentiate you from competing contractors.  Scope, cost, and schedule could’ve been more expensive or cheaper, they don’t seem quite realistic. 8. Look over the two RFPs located at: (1) http://www.osc.army.mil/ac/aais/ioc/solinfo/rock-island-arsenal-5047/ (2) http://cpbc.ucsf.edu/files/ITN_Website_RFP_2008.02.28.doc Look at them to see the magnitude and detail that is sometimes included, especially from the government. Look over a few of the sections; look especially at Section C, Performance Work Statement, of the first RFP. Comment briefly on your thoughts about these RFPs. State good points and bad points. ➢ The first RFP provided us with information that can win a contract, it included components such as: -  Statement of work (SOW)  Customer requirements  Deliverables  Customer-supplied items  Approvals required by the customer  Type of contract  Payment terms  Required schedule for completion  Instructions for format and content of proposals  Due date for proposals  Evaluation criteria Not winning a proposal can hurt a contractor’s reputation, so risk is an important factor to consider. - The report was realistic about probability in the contract. ➢ The second RFP about “ITN PUBLIC WEBSITE” had only the technical section. - The report …. • Recognize a need, problem, or opportunity • Clearly define the need, problem, or opportunity • Quantify the need, problem, or opportunity • Determine preliminary budget • Determine preliminary schedule 9. Find an IT-related RFP on the Internet; provide a working URL for the web site. Comment on the RFP that you found. Evaluate it according to the RFP requirements discussed in class. State good points, bad points, and any comments you might have from the bidder’s point of view. IT-related RFP “Computer Equipment, Software and Related Services“: http://webapps.ccc.edu/bid/getFile.do?id=446&fileid=1 The RFP included: ✓ SECTION I -GENERAL INFORMATION ✓ SECTION II - INTENT AND SCOPE OF SERVICE ✓ SECTION III – SUBMITTAL REQUIREMENTS ✓ SECTION IV - INSURANCE REQUIREMENTS ✓ SECTION V - GENERAL INSTRUCTIONS ✓ SECTION VI - EVALUATION CRITERIA ✓ SECTION VII - EXECUTIVE SUMMARY SHEET FORMS ✓ SECTION VIII – FEE PROPOSAL Success of proposal efforts is measured by: Number of times proposals are selected, and/or, total dollar value of proposals that are selected. The report didn’t quite follow some of the sections that should be included in a typical RFP such as: • Type of contract • Payment terms • Due date for proposals • Evaluation criteria - The report was not mainly organized into the three sections: - Technical Section - Management Section - Cost Section
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