Request for Proposal (RFP)

A Request for Proposal (RFP), while generally used for requirements of $25,000 or more, is often employed for purchases where the selection of a supplier cannot be made solely on the basis of the lowest price. An RFP is used to procure the most cost-effective solution based upon evaluation criteria identified in the RFP.

Summary

Suppliers are usually expected to submit detailed technical, managerial and cost proposals.

How RFPs are generated

• The requirement for the good or service is identified within a federal government department or agency.
• A RFP is prepared by Public Works and Government Services Canada (PWGSC) in consultation with the department or agency. This document describes the requirements, objectives and/or problems to be solved.
• A Notice of Proposed Procurement (NPP) is posted on MERX^TM (see the document MERX- Electronic Tendering Service ).
• On payment of a fee, interested suppliers are sent a copy of the RFP and the necessary bidding documents. If excluded from the North American Free Trade Agreement (NAFTA), the World Trade Organization Agreement on Government Procurement (WTO-AGP) or the Agreement on Internal Trade (AIT), the RFP is normally open for bidding for 15 to 20 working days, or longer in the case of particularly complex requirements.

Evaluation Methods
Proposals are normally evaluated on relevant technical merit and overall best value, in accordance with the selection method specified in the RFP. The price proposal is not considered to be part of the technical evaluation, except for that portion containing information about the level of effort estimated by the bidder.

The department or agency for which the good or service is required is responsible for evaluating the technical proposal in accordance with evaluation criteria outlined in the RFP. Three methods of evaluation may be used:

• evaluation on the basis of mandatory minimum requirements only;
• evaluation on the basis of a point rating system only;
• evaluation using a combination of mandatory minimum requirements and point rating.

In the point-rating system, proposals must qualify for a minimum number of points, overall, to be considered responsive. Frequently, they are required to achieve a minimum number of points relative to specific criteria.

Selection Methods
The method used to select a supplier will vary according to the requirement. The options include:

• Selection on the basis of the lowest valid proposal
  Only those proposals that meet the evaluation criteria are deemed to be valid (i.e., qualify for further consideration). Within this category of valid proposals, price is the determining factor in selection.

• Selection on the basis of best overall value
  The requirements usually include mandatory and point-rated criteria. In this method, supplier's selection will be based on the bidder offering the lowest responsive cost-per-point proposal, determined by dividing the bid price by the total points achieved in the technical evaluation of the bidder's proposal. The firm with the lowest cost per point is selected.

• Selection on the basis of the highest technical proposal within a stipulated budget
  This method is commonly used for scientific service requirements where the final choice of the supplier will depend on the price. A supplier is invited to propose a solution to a problem, or a method of achieving an objective. Selection is based on the effectiveness of the proposal and not exclusively on price.

All bidders are notified of the outcome of their proposals. Debriefings are provided to unsuccessful bidders on request.

For more information on bid methods, contact Business Access Canada or your local PWGSC office.

Quebec Contact(s):
Eastern Quebec - Quebec
Public Works and Government Services Canada
Champlain Harbour Station
901 du Cap Diamant Street
Québec, Quebec  G1K 4K1
Telephone: 418-649-2872
Fax: 418-648-2209
Web site: http://www.pwgsc.gc.ca/text/index-e.html

Western Quebec
Public Works and Government Services Canada
Suite 7300, Place Bonaventure, South-East Portal
800 de la Gauchetière Street West
Montréal, Quebec  H5A 1L6
Telephone: 514-496-3390
Fax: 514-496-3822
Web site: http://www.pwgsc.gc.ca/text/index-e.html

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National Contact(s):
Business Access Canada
Public Works and Government Services Canada
Room 6C1, Phase III, Place du Portage
11 Laurier Street
Gatineau, Quebec  K1A 0S5
Fax: 819-956-6123
Toll-free (information): 1-800-811-1148
E-mail: ncr.contractscanada@pwgsc.gc.ca
Web site: http://www.pwgsc.gc.ca/text/index-e.html