Pros and Cons of RFP’s for various businesses

There are a lot of organizations and businesses nowadays that rely on RFP’s for daily processes and operations. Request for proposal has an impact on small businesses, non-profit organizations, and profit-organizations as well.

RFP’s for Non-profit Organizations

It is a fact that the bidding process trickles down into the non-profit organization, especially in the case of proposals that are non-profit seeking. While the Request for proposals might work for some determined sectors, there are some cons to the non-profit organizations that are important to consider before utilizing resources.

The following drawbacks need to be considered which RFP’s bring about for non-profit organizations:

1. The RFP process is time-consuming. All the important details are to be compiled and collected, and specific details need to be considered carefully. This might not seem like a big deal, but for small organizations, it can be a burden, due to how much time and skilled workforce is required for it.
2. Non-profit organizations are known as fluid entities, as they can adapt and evolve according to the situation. Once you select a winning bid, due to any problematic circumstances, the results might change to something negative and unexpected.
3. This Request for a proposal is impersonal and just an estimate, that too from an unknown source, but delivers sensitive details like timelines, deadlines of important processes, and prices as well.
4. The request for proposal isn’t able to provide the expected response of the bidder or the bidder’s ability to deliver to your needs.

RFP’s for contracting design work and similar businesses

Pros

1. Compilation of the RFP’s help in establishing an initial project scope.

An RFP is good for businesses to plan to prepare for unforeseen circumstances in the future. An RFP can list a lot of factors that can help with allocating the budgets, understand and prepare for outcomes, and estimating the timelines and results.

2. The replies can be narrowed down in case some variable are already determined and estimated

While getting the responses, some of the qualified leads are narrowed down quickly due to the bidders proposing their services along with the quality of the proposals.

3. Comparing and contrasting

The request for proposals helps provide a base on which the responses help to compare and contrast a wide range of experiences and skillsets.

4. The templates of RFP’s

A lot of companies who become experienced with the process of RFP’s establish a set system for the RFP’s. The template being established makes it easy to fill, and the places for variables are left blank.

Cons

1. It is important to understand the whole scope of the project

Getting an opinion is important within businesses like designing. In this case, getting an opinion from a design professional will help you determine the final result and the scope your whole project has. An experienced person will have a lot of ways to guide you.

2. No contacts made with potential partners

If you are indulged with people within your organization, especially after sending out a blind request, there is a low chance that you would get an opportunity to interact with anyone outside your organization. Bidders might have a chance to question you about it, but it might seem impersonal.

3. There are no strategies or opinions in proposal requests

They tend to cost a lot of numbers assigned to the line items, but having a real input would be more preferable, especially from consultants or experienced professionals.