How to Evaluate Services Firms' Proposals


Whether you sole-source your requirements or solicit multiple bids, focused services specifications, clearly outlining your needs rather than your ideas for possible solutions, will improve the quality of the responses you receive. And, if you have requested multiple bids, focused specifications tend to limit the number of inadequate responses.

Assuming that you have solicited multiple bids, you face the task of reading, evaluating, and ranking a potentially sizable stack of proposals. How do you separate the good ones from the bad? Here are three rules to get you started:

Rule One: Look for a services firm that demonstrates an understanding of your needs.

Be wary of those who offer generic, "cookie cutter" solutions. When reading the services firm's proposal ask yourself, "What appears to be the focal point? Is it our needs and feasible solutions or is it the vendor's products, special area of expertise, or favorite media?" Expertise and experience are important and should be there, of course, but it is your problems and needs that should be key.

Rule Two: Welcome and take advantage of live presentations.

Often, professional services firms will request - even urge - you to let them present the highlights of their proposal to your review team. This should be an attraction, not a put-off. Assuming you have read their proposal, this is your chance to probe any "fuzz words" and find out exactly what services the firm is prepared to offer. If a services firm is willing to take the time (costly for them) to present in person, welcome the opportunity. Since you are buying professional services, you should want to meet and talk with the firm's core team.

Rule Three: Consider cost last.

The worst mistake you can make is to start out by ranking the proposals submitted by price quotation. What good is a low-cost "solution" which doesn't solve your problems?

Instead, first do a rough sort, setting aside those proposals which ignore or gloss over your real needs, regardless of price quoted. Then, do a second level screening of the rest. Keep cost in mind, but only if it is going to deliver what you really need.

Proposal Reviewer Checklists

The following checklists can help you sort out doubts when faced with a number of professional services firm proposals. As a general guideline, first read each proposal for understanding, without initial thought to evaluation. Then simply check off "Yes" "No" or "?" beside each question.

Proposal Evaluation Checklist
- Level 1 -

Yes No

?

Does the services firm appear to understand our need?
Is the proposed solution clear?
Does the proposed solution appear to meet our need?
Is the services firm willing and able to deliver the solution when we need it?
Does the services firm's proposal state the mutual responsibilities of each party, and are they acceptable?
Has the services firm attempted to clarify issues which might otherwise create later controversy?
Is the proposed solution creative (if that is what you are seeking)?



If you checked a definite "no" to any question, you can probably put the proposal in your reject pile. (Do not forget to make a note of the reasons for rejection. You'll probably be asked.)

If you have checked either a "yes" or "?" in each area, the proposal should be favorably considered. Now complete the Level 2 Evaluation Checklist.

Proposal Evaluation Checklist
- Level 2 -

Yes No

?

Does the proposal make a clear commitment to responsive project management?
Are there provisions for quality control?
Are provisions made for testing the product in draft form?
Are there adequate review milestones (and not too many)?
Does the services firm (and proposed team) have experience with the subject and your industry?
Does the services firm (and proposed team) have experience and a track record?
Does the services firm have the facilities to accomplish the job?



Several "no" responses should steer you away from the proposal, numerous firm "yes" responses should direct you toward further consideration, and a question mark or two should cause you to investigate further.

Finally you will come to costs for services and your own "gut reactions." Both are valid criteria for evaluating proposals, so long as you hold them for final consideration, rather than allowing them to influence your decision too early.


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