Request for Proposal

A financial institution should generate the RFP from the information developed during the requirements definition phase. While the level of detail may vary for any particular procurement, the RFP should describe the institution's objectives; the scope and nature of the work to be performed; the expected production service levels, delivery timelines, measurement requirements, and control measures; and the financial institution's policies for security, business continuity, and change control. It also requests responses addressing those requirements as well as the fees each service provider will charge.

Once management distributes the RFPs and receives responses, it should evaluate the service provider proposals against the institution's needs. When the institution evaluates the proposals, it may find that the proposals do not completely agree with the RFP. For example, the service the service provider proposes may include different processing workflows or reporting schemes, pricing formulas or techniques, or the response to information requests may not be complete. If the institution considers proposals that differ from the RFP, the institution should evaluate the differences against its requirements and clearly understand how the changes will affect the institution's objectives and service expectations. The institution should evaluate material differences using a process similar to the one used to develop the requirements initially. An institution should negotiate a resolution to any differences between the RFP and the service provider proposal before contracting with a service provider.

 

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