What is an RFP?

1. What is an RFP? RFP = Request For Proposal Definition: An RFP is an invitation for suppliers or vendors to submit a proposal on a specific product or service through a bidding process. WageWorks receives RFPs from consultants (brokers), from government entities, public trust agencies, and sometimes directly from the client. An RFP is also a selling tool or sales document. Its function is to help move the sales process toward closure. An RFP is also potentially a contractual document – we may be bound by our responses, therefore accuracy is critical. 1

2. What are the essential components of a good proposal response? The primary objective in writing a proposal response is to provide the client with enough information to prove WageWorks’ case and motivate the client to buy our services. Competitive proposals should always include: Evidence that you understand the client’s business need A recommendation that is presented so well the client is confident it will meet their need Evidence of WageWorks’ competence to deliver the solution A compelling reason for the client to choose WageWorks over other providers 2

3. How are RFPs evaluated? Proposal responses are primarily evaluated in terms of: Fit: Is WageWorks a good match for my company and our specific business needs? Am I, the client, getting what I need? Am I, the broker, comfortable recommending WageWorks to my client? Competence: Can WageWorks really deliver what they say? Cost Factor: Is this a good price for what we’re getting? Do good proposals win business by themselves? Sometimes. However, a bad proposal can very easily lose business. 3

4. RFP evaluation In very basic terms, the process of RFP evaluation looks like this: The broker or client scores each proposal to see which ones comply with the mandatory terms and conditions of the bid. Proposals that can’t comply are probably eliminated at this point. If cost is handled as a separate or primary issue, pricing will be evaluated separately from the rest of the proposal Other, possibly subjective criteria. Some tips for getting a better “score”: Submit as brief a proposal as possible. Shorter proposals are usually read first and then used unconsciously as a standard for the other submissions. Make your proposal easy to read and your recommendations will seem to make more sense. Separate WageWorks from competitors where possible. Try to avoid making promises without substantiating how you can deliver on them 4

5. How evaluators function RFP evaluators compare responses from various vendors, even though they’re supposed to evaluate each proposal objectively on its own merits. They are heavily influenced by past experiences with each vendor. They get tired of evaluating. After the first few documents, the task gets tiresome. Their key evaluation test is usually responsiveness to key issues, and compliance with requirements. They look more favorably on proposals that demonstrate how the vendor will meet or exceed their requirements. Subliminal factors such as clarity, ease of using and reading a proposal will influence an evaluation, even when the evaluators use a scoring system. They look favorably on responses that are well organized, with clear headings, clearly labeled exhibits, etc. that make it easy to find and refer to the information. 5

6. What evaluators like and what they don’t They like: Proposals that follow the RFP directions Well-organized and consistent proposals A professional-looking document that shows good project management and thoroughness All deliverables clearly labeled, which shows you understand what you need to deliver and you’re committed in writing to doing it They don’t like: Proposals that take a poor or unclear approach to solving their needs and issues “Hype,” platitudes, self-congratulatory language Proposals that are too wordy, that substitute bulk for focus Poor quality, unreadable proposals, spelling errors, typos, poor photocopying, etc. Proposals that are weak on responding to needs and requirements Responses that are inaccurate or inconsistent 6

7. What does an RFP look like when it comes to us? RFPs come in several different formats: Word documents Excel documents PDF documents Online (HighRoads, ProposalTech, etc.) [Hands on: see some samples. El Paso, Cardinal Health and Dover.] 7

8. RFP Overview Form The overview is submitted with the RFP, by the sales exec. This is information that is vital to providing a targeted proposal response. It contains: Overview information: Company and broker name, incumbent Key dates: Intent to bid, vendor questions due date, proposal due date, first benefit month Program information: what are we quoting on, and for how many people? What’s the potential revenue? Current situation: How happy/unhappy is the client? Why are they out to bid? What will drive their decisions? What’s the competitive landscape? Requirements and potential issues: Deal-breakers, anything non-standard. WageWorks perceived strengths and weaknesses Overall strategy/positioning [Hands on: refer to the RFP Overview Form.] 8

9. The “guts” of an RFP Most RFPs contain the following elements before you even get to the questionnaire: Administrative information: addresses logistics, bidders’ conferences, intent to bid date, points of contact, the client’s internal decision-making schedule – vital for developing your timeline in getting the proposal completed Legal requirements: clauses or specifications that govern contracts, including terms and conditions, subcontracting requirements, etc. Format guidelines: information about required or recommended format, how to submit the proposal response Content requirements: information about evaluation criteria – this is where key strategy often comes from Keep all of the above in mind while project managing your RFP. Sales execs should also be using information from the client (RFP clues and phone conversations) in assembling cover letters, executive summaries, etc. 9

10. Other RFP documents You may also receive other supplemental documents, some of it you will need to address and some you may not. Some examples: Census information Performance guarantee matrix Contract language, terms and conditions Current SPDs and plan designs Confidentiality agreements or business associate agreements 10