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GIS Procurement and RFP Development 3 GIS PROCUREMENT AND DEVELOPMENT OF REQUEST FOR PROPOSAL ByAllen Ibaugh, AICP Space Imaging 707 N. Alafaya Trail #567 Orlando, FL 32828 407-365-6033 (phone and fax) [email protected] The Urban and Regional Information Systems Association 1460 Renaissance Drive, Suite 305 Park Ridge, IL 60068 This Quick Study is one of URISA’s Series on GIS Implementation. Complementary titles include Jump-starting GIS: How Local Governments Can Get Started in GIS with Limited Resources and A Quick Guide to GIS Implementation and Management. Acknowledgment: Dawn Bisplinghoff and Rebecca Somers contributed to editing this text. Copyright ©2001 by the Urban and Regional Information Systems Association (URISA),1460 Renaissance Drive, Suite 305, Park Ridge, IL 60068, (847) 824-6300, www.urisa.org. All rights reserved including the rights of reproduction and use in any form or by any means, including the making of copies by any photo process or by any electronic or mechanical device (printed, written, or oral), or recording for sound or visual reproduction, or for use in any knowledge or retrieval system or device, unless permission in writing is obtained from the copyright proprietor. Printed in the United States ISBN #: 0-916848-29-9 INTRODUCTION This Quick Study provides detailed steps for local RFP types described within this report cover GIS governments that are planning to embark on the procurements ranging from general professional Request for Proposal (RFP) development process for service contracts to specific design, development, and procuring geographic information system (GIS)- implementation contracts. Implementation contracts related products and services. The objective of this of an RFP are discussed under general guidelines publication is to provide a reference document to be rather than as detailed application specifications. used in the RFP development process. This It is important to note that this report assumes RFP publication also provides guidance on developing a development as the third or fourth step in the overall specification-driven procurement, even if a formal GIS implementation process. Needs assessment and RFP process is not required. requirements analysis are initial steps that are utilized The Quick Study discusses how RFP procurement fits to define needs and requirements for inclusion in into the larger GIS development process that includes: formal RFP specifications. In addition, a less-detailed Request for Qualifications process could be a precursor I personnel roles and responsibilities for RFP step to the formal process that provides general development; qualifying information regarding potential vendors. I RFP preparation; I specifying a scope of work; The RFP process is a critical part of the overall GIS I developing a selection process and evaluation development plan. An RFP is a multipurpose criteria; document that clearly communicates the purpose and I developing effective proposal formats and goals of a program, promotes lively competition submittal guidelines; among potential vendors, and generates high-quality I the proposal evaluation process; and responsive proposals that can be rated in a consistent I why it is important to have a comprehensive RFP. and objective fashion. With minor modifications, the scope of work described in the RFP will closely resemble the requirements in the resulting service contract. GIS Procurement and RFP Development 3 PROJECT PLANNING AND PREPARATION OF THE RFP A clear, concise RFP is crucial to a successful project, A GIS implementation process involves five main whether the venture involves GIS planning, study, phases: design, construction, conversion, implementation, or a combination of these elements. A properly written 1. Planning the GIS project-establishing the Scope of Services or specification in an RFP provides purpose and scope of the project. the foundation for the development of a solid platform 2. Identifying functional requirements. for technology purchase and program 3. Determining system design and structure that implementation. This section covers project planning will meet the functional needs. and preparation of the RFP. Subsequent sections in 4. Acquiring and implementing system the report discuss these topics in detail. components-software, hardware, data, etc. 5. Operating and maintaining the system and data. (Somers, 1996) GIS Project Planning The most complex GIS RFPs are those for functional GIS-component RFPs and procurement come into systems components (e.g., software and hardware, play in the fourth step of the overall GIS communication network, data, and applications) implementation process. The scope of the work and Before such RFP documents can be drafted, a thorough specifications in an RFP are the result of the GIS project planning phase should be undertaken. The planning process (planning, needs analysis, and project-planning phase involves establishing the goals system design). The RFP process can also be used to and objectives for the project and determining detailed acquire these services and products. (The GIS functional needs. If the planning aspects of the GIS planning process is discussed in detail in the URISA program are not clearly defined before drafting the RFP, Quick Study, A Quick Guide to GIS Implementation the resulting effort will not be well structured or clearly and Management.) define the functional needs of the services to be provided. This could result in a time-consuming and It is important to note that RFP development marks less successful procurement process. the culmination of the strategic planning and GIS Procurement and RFP Development 5 requirements analysis process and represents the should cover such topics as: 1) specific objectives of formal means for communicating the agency’s the RFP services being procured and overall project requirements to potential vendors. Too often, the RFP objectives; 2) detailed information and technical is viewed as an administrative rather than a technical specifications (i.e., precision requirements, hardware/ document. Its administrative function should be software environment, and quality control secondary to its technical function. The RFP must procedures); 3) schedule for response; 4) scope of the contain clear and sufficient technical guidance so that work; 5) response format (including specific vendor the vendor has a definite picture of the requirements financial information); 6) submittal guidelines; and and what is to be delivered. 7) evaluation information. Before formal drafting of the RFP, several issues should be discussed with the procurement division, Procurement and RFP Planning such as the types of contracting tools available (i.e., The first step in preparing a successful RFP is Firm-Fixed Price, Time, and Materials) and which planning and defining the project and the type fits best for the current GIS RFP. parameters or limitations. Planning and defining the project will help identify the services that should be purchased and the resulting deliverables. This step Contract Types also assists in determining the information and experience needed about the company or individuals Choosing the appropriate contract type is essential. who will provide the services. The type of contract determines the cost and performance risks that are placed on the product or Planning the RFP and procurement process begins service provider. There are two broad contract with identifying the project team who will be groups—fixed price and cost reimbursement. Within responsible for the GIS procurement and RFP each of these groups are various types of contracts development. Depending on the project that can be used individually or in combination requirements, the team may consist of GIS subject (NOAA, 2000). matter experts, programmers, analysts, or designers. Additionally, support personnel such as procurement Firm-fixed price contracts. This type of contract specialists and administrative staff will be needed as requires the vendor to successfully perform the part of the project team. RFP personnel requirements contract and deliver conforming products or services will be discussed in detail in the following section of for a flat rate price agreed to before the project begins. this report. This type of contract places much of the performance and cost risk on the vendor. If the project costs the The next step is specifying the project goals and vendor more than expected to complete, the vendor objectives for the project or portion of the GIS project still receives only the amount originally agreed upon. that the RFP serves and ensuring that they are If it costs the vendor less, a greater profit is made. A achievable within the time and budget available for firm-fixed price contract is suitable for products and the project. The results of this project definition services that can be described in sufficient detail to should be included in the RFP, as discussed in the ensure a complete understanding of the requirements section titled “Project Overview.” by both parties and assessment of the inherent risks. The third step is determining the contents and Cost reimbursement contracts. A cost format of the RFP so that comparisons can easily be reimbursement contract allows for payment of all made between the submitted RFPs. The request incurred costs within a predetermined ceiling that can 6 GIS Procurement and RFP Development be allocated to the contract, that are allowable within Other types of contracts. Other common contract cost standards, and that are agreed to by both parties.
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