Selecting Vendors: A Project’s Most Critical Decision
Before you issue the document, you will likely have to discuss your process with the Purchasing
department. I typically make two requests from Purchasing that are not a usual part of their process.
Firstly, I ask to issue an RFI. Purchasing is most familiar with a tender process. Whether you issue
an RFI or RFP, neither is a tender and you must ensure that Purchasing is aware of the differences
and establishes a process that is appropriate for your project and to the document type. Secondly,
Purchasing generally performs the bulk of the process during acquisition. I prefer that the project
team take on this activity for two reasons: interaction between the Vendor and your organization
will be at a very GIS-specific level, meaning Purchasing will not likely be able to interpret or
answer Vendor questions adequately or accurately. Secondly the process you have selected is likely
significantly different than a tender. It may be necessary to educate Purchasing on the process and
the type of document you wish to issue. The end result should be an agreement with Purchasing on
the division of responsibilities. As in the case of the executive, sound communications and frequent
reporting to Purchasing will maintain a good working relationship. You will require Purchasing
support to consummate any contract resulting from the selection process. Keep them on your side.
Who Should Be On The Evaluation Team?
Evaluation Team members should be chosen based on their knowledge and roles within the project.
You may consider appointing members from the project team (technical input), user committee
(requirements and acceptance of solution), IT department (fit of solution to the global IT strategy),
and the project sponsor (communication, decision making, buy-in).
An issue that may modify your process is that of defensibility. Whatever your selection decision,
there will be one winner and several losers. At a minimum, you will have to defend your decision to
some extent to authorities within the organization. Depending on the politics of your situation,
defensibility may require a significant effort both internally and externally. The easiest defense is to
ensure your process is objective, not subjective. One method we’ve utilized to ensure objectivity is
to engage the services of an independent industry consultant. The consultant from time to time will
audit the process to ensure the process, evaluations and criteria used for evaluation continue to be
objective.
Why Have A Written Response, A Presentation And A Demo?
All three forms of response are critical to the proper selection of a software product of this
magnitude. Each form of response provides a perspective that is unique and a forum that ensures all
subjects are adequately explored.
Firstly, a written response from the software Vendor to your organizations requirement is critical.
As well, other information such as references, similar projects, Vendor financial, and response to
technical questions are essential. A written response should show that the Vendor understands your
project goals and that the product will meet your requirements.
Secondly, a one-day presentation allows the selection committee and software Vendor an
opportunity to interact with one another and ensure concerns from each party are satisfied. The face
to face forum allows each party the flexibility to engage in whatever discussion is necessary to
clarify a wide range of issues that may have been unclear or unanswered from the RFI.
Thirdly, the 1/2 day demonstration will allow the software Vendor to demonstrate in practical terms
how the software will meet each one of your requirements and technical concerns. This is likely the
first time you have had an opportunity to view the software.
Components Of The Selection Process
The graphic at the end of this discussion represents major tasks in the selection process and how
tasks fit, relative to one another. The process can be broken into four components: Preparation,
Response, Short-List Selection and Proof Of Concept.
Each of the four components is discussed below, with some comments that may add value to
specific tasks.
A. Preparation
- Create A Requirements Document
- Create An RFI Document
- ensure major representatives of the selection committee have reviewed the
document (Purchasing, Project Sponsor, Executive Sponsor, IT representative)
- Create Selection Schedule And Get Buy-in From Purchasing And Executive
- Establish Selection Criteria And Critical Factors
- isolate each requirement or information request from the RFI.
- maintain the RFI page, section, item number for each requirement for quick
reference
- collapse similar requirements into a single requirement statement
- group requirement statements into categories
- pole selection committee to establish critical evaluation factors
- assign weighting to each category
- Create Scoring Forms
- should include individual forms for each Vendor
- a line for each requirement statement and it’s associated weight
- a detailed list of all RFI requirements and their location (for reference)
- an electronic spreadsheet to record individual scores and calculate group scores
- Establish Vendor List
- research potential service providers well before you issue a document
- consult industry publications including AM/FM Membership lists, GIS World
Source Book
- conduct a survey of local service providers
- Issue RFI
- send a copy to everyone on the distribution list
- advertise in selected local and national newspapers
B. Response Period
- Respond To Vendor Questions
- if answers to a Vendor’s questions are of significant importance to all Vendors,
an addendum should be issued to make all respondents aware of the information
- Letter Of Intent Receipt
- by requesting a letter of intent from each potential respondent, you can judge the
extent of the selection tasks reasonably early in the process
- Receive Responses
- arrange for adequate space to store the responses
- arrange for the distribution of responses to selection committee members as
responses arrive
