*** DISCLAIMER*** These are helpful hints that may help in the commercial
bidding and proposals and that PWNA has no responsibility in the success
or lack of success of individuals and/or their companies.
This is a question often asked as contractors go after larger accounts
and expand their businesses. Trying to land these accounts can be both
intimidating and time consuming. To make the process easier we have
developed this question and answer format to hopefully help answer
many frequently asked questions (FAQ's).
Q. When dealing with large companies there are so many levels
of management and many individuals, how can I make sure I am submitting
a proposal to the right person(s)?
A. RFP's will have the contact person(s) name and where to submit
your bid listed. If you are trying to initiate a proposal to a
company you should specifically ask for a decision maker. This
may include a Facilities Manager, General Manager, Director of
Operations, or any other possible title. Very often a person will
do a lot of work and prepare a very nice proposal and it fall into
the wrong hands. If a bid is submitted to a General Manager, who
is not the decision maker, it may never see the Area or Facilities
Manager who may be able to make this decision. So specifically
ask, "Can you tell me who makes the decisions for curb appeal and
building maintenance?"
Q. I received an RFP that was very wordy and 30 pages long. I do
not understand everything but I would like to get the job. Should
I just bid it anyway? My company could use this contract!
A. No, you should understand the entire RFP before considering
bidding. An RFP will outline specifically how the company wants
the service provided and how it is to be accomplished. Often
these documents will have been reviewed by an attorney prior to
being sent to the public. It is a good idea to have your questions
answered and reviewed by your attorney. You want to be sure that
before you sign a contract that you understand all that is required
of you. There are some issues that both parties may compromise
on during the bidding process.
Q. Why should I bid the RFP? They are only looking for the cheapest
price, and there is always a competitor willing to work cheaper.
My company does not operate like that.
A. Not all companies are looking for the lowest price. Many are
looking for the most competent bidder in the lower price range.
First, determine what a competitor may be offering compared to
you. Are you including more service than they are?
This is where understanding of budgets and the budget process
helps. An RFP is based on an existing budget that determines
what the company is willing to pay. This does not always mean
that is what they want. Ask for a budget number so that you
can break down your costs and what services you can provide
for that budgeted number. Make sure you know exactly what they
want included. This may be a time to offer another service
that a competitor may not provide. Do not be discouraged if
you do not get a budget figure. Many times this is an
education process for both parties and if your proposal
is accepted it may take a few years to get the
actual pricing right.
Q. If budget numbers are already decided then aren't I basically
deciding whether or not I want to provide my service for that price?
A. If you are not part of the budget process then the answer
may be yes. Often times if your service was not budgeted for
then you may have to change direction. This may be the time
to talk to a "decision maker" to educate them about your
company and your services. Let them know that you would
like to work for them and that you hope in the future that
your service could be included in their budget. You have
now planted the seed for that company. If the company has
provided this in the budget and is currently looking for
your service then you may have to decide what your
company's costs are and whether you can meet the
requirements of the RFP and perform the work for a
profit. Many companies begin the budgeting process
in the third quarter of the previous year and figures
are finalized in the fourth quarter. This is important
to know when participating in the process. Working with a
company early in the process will help you both land the
job as well as help you get the right price. If you wait
until it is too late and the budgets are complete then
you are usually left with the decision of whether or not
to do the work for the pre-determined price.
Q. I have received the RFP and I have no idea how to
price the job. Where do I start?
A. This is the question most often asked. It is important to
first understand the RFP and what is required. Once this is
determined you must then figure out what it will cost your
company to provide this service. It is important at this
point not to worry about competitors. You are in business
to make money and you must first determine if your company
can provide the requested service for a profit. Once you
have determined your cost you can add to this figure the
percentage of profit that you would like to net. Add these
two figures together and you will have your number to bid.
This is the number you decide that you are submitting and
this may be the end of the process for you. If this is a
completive bid process then you may be able to negotiate
further. If you would like to continue in the negotiating
process insert in the proposal, "This is a completive bid."
This will allow you an opportunity at a later date to
possibly win the bid. An example would be that you provided
a bid based on 30% profit but after following up you could
win the bid based on 25%profit you have given yourself the
opportunity to make this decision.
Q. I do not understand why my proposals are not accepted. I
submit a very sharp looking and professional bid and rarely
do I hear back from anyone. What am I doing wrong?
A. It is a good practice to submit a bid and then continue
to follow up on the process. When you perform a follow up a
call ask if there are any questions regarding your bid or if
there is anything else that may be needed of your company.
Very often this becomes a great opportunity to land the bid.
For one thing it shows that your company "wants" the job.
Secondly it shows that you are professional by the fact
that you followed up with a call. This says to the
prospective customer that you will follow up on your
service as well. This also may be the time to address
any other "gray" areas of the proposal. Suppose you are
bidding on a retail store for flatwork cleaning of curbs
and walkways. If you did not include other services in
the initial bid this is the opportunity to possibly sway the
decision in your favor. You can inform them that you also
provide building cleaning services, cart washing and cleaning,
window cleaning, or any other service that they may need. You
will increase your success rate dramatically by performing a
follow up call. If you are informed that you did not get the
bid do not be afraid to ask why. This is an opportunity to
find out more about what another company is looking for or
what you may need to improve on for the next proposal you
submit. You will learn a lot by simply asking why your bid
was accepted or why another bid was accepted.
Q. What should I include with the submission of the RFP to
help my company win the bid?
A. You should provide a company profile to let the prospective client
know a little more about your company. This should inform them
that they can be confident that your company will provide the
services requested beyond any shadow of a doubt. You should
include any insurance or licensing information. Upon
acceptance of a bid you will need to provide a "Certificate of
Insurance" with the company's name listed. You should provide
any information on certifications, awards, association
affiliations, etc. with the proposal. Include any testimonials
and references as these are "attention getters". Some
companies will choose to include the clause "references
provided upon request" instead. Many companies will also
provide something "extra" with the proposal to make their
company stand out from others. This may include a logo pen,
magnet, mouse pad, etc. that really only send the message
that we do a little more than the competition.
Q. The bid only requires a one time service, is there a way
to entice the customer to continue to use my service?
A. It is important to always look to build your business. One way
is to 'up-sell' other services and another is to provide continued
service or maintenance at a lower cost. For example, if the
requested bid is for a one time cleaning you simply provide that
information and then make an addendum to your submitted proposal.
You could possibly offer quarterly, monthly, or weekly service
at a different cost level. The more often you provide the
service the easier it may be to complete (and in less time).
All of this can weigh into a decision to show the customer
that they may be able to spend less money than they thought
to maintain a better situation for their customers.
Q. What should a submitted proposal look like? Won't it just get
thrown away if we do not win the bid?
A. It is wise to provide a nice presentation in a nice booklet
or folder style casing. If it is submitted in such a form it
may go on a shelf or be filed. This is a good thing. You want
to lessen the odds that the bid will be thrown away. You never
know when you lose any bid if the company that won the bid will
not perform well. If this happens you want to hope that they
saved your proposal. If the company re-bids annually they
may remember you because of your last professional submission
and contact you again. In other words, never assume that
"the tree will never bear fruit." It is common for a company
to receive a phone from a proposal submitted 2 and 3 years
later.
Q. I have put a lot of time and expense into the getting my
bid accepted. How soon can I expect to get paid after completion?
A. Working in the commercial services arena will require some
patience in regards to payments. If there is to be a pay
schedule that should be included in the body of the bid.
Often these companies will take between 30 and 90 days to
pay out. One way to speed up this process is to submit all
company information to the Accounts Payable Department of
the company that you will be providing service for as soon
as possible upon receiving acceptance. This will allow
them to enter your company information into their system
prior to completion of the work, therefore speeding up
the time for you to receive payment.
Q. We were awarded a contract but we are often asked to provide
"extra" services at certain locations. This is causing us delays
and money for these items. How can I resolve this issue without
causing a problem or losing the contract?
A. Anytime you are asked to provide any service that is outside
of the original contract you should complete a written "change
order." A "change order" should include any service that is
different from the original proposal. It should include
information about providing different services at different
locations. These exact services and locations should be
listed. The change order should have at least 2 appropriate
signatures, one from the company providing the work and one
from the company to which services are being provided. Make
sure that the person or persons signing the change order
have the authority to do so. Make sure that the document
is dated by the each signer as well.
Q. We have been having issues with one account where we
are constantly required to re-visit the location to
address customer satisfaction. We also have been
questioned as to whether we even were at a location
and provided service. Is there a way to correct this
situation?
A. Your company should document all necessary information
for each location that service is provided. Most companies
will include the technicians or employees assigned to that
job and other information that might include date, weather
conditions, problems, comments, follow-up recommendations
and so forth. If there is a manager on site it is a good
idea to request their signature and leave a copy of a
report as necessary. If no one is on site at the time
of service it is more important to document all
activities and issues. In these instances digital pictures
with date stamps have become a useful tool, specifically
where a before/after picture documents the services
performed.
*** DISCLAIMER*** These are helpful hints that may help in the commercial
bidding and proposals and that PWNA has no responsibility in the success
or lack of success of individuals and/or their companies.