Service Provider Selection
- Evaluate service provider proposals in light of the institution's needs, including any differences between the institution's solicitation and the service provider proposal;
- Perform due diligence on the prospective service providers;
- Ensure that selection of affiliated parties as service providers is done at arms length in accordance with regulations and guidance issued by the institution's primary regulator; and
- Evaluate foreign-based third-party service providers in light of the guidance found in this section and in Appendix C, Foreign-Based Third-Party Service Providers.
After identifying the work to be performed and the necessary controls, a financial institution solicits responses from prospective service providers. The primary tool for the solicitation is the Request for Proposal (RFP). The RFP also supports subsequent contract negotiations.
Request for Proposal