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;
• An 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);
• Interested suppliers can download free of charge an electronic copy of the Government of Canada RFP and the necessary bidding documents.

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 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 upon request.

For more information on bid methods, contact the Office of Small and Medium Enterprises or your local PWGSC office.

Manitoba Contact(s):
Office of Small and Medium Enterprises (OSME)
Western Region
Public Works and Government Services Canada
5th Floor
Telus Plaza North
10025 Jasper Avenue
Edmonton, Alberta  T5J 1S6
Telephone: 780-497-3693
Fax: 780-497-3506
Toll-free (information): 1-800-O-Canada (1-800-622-6232)
TTY Toll-free (hearing impaired): 1-800-465-7735
E-mail: osme-bpme-wst@pwgsc.gc.ca  
Web site: http://www.tpsgc-pwgsc.gc.ca/app-acq/pme-sme/osme-eng.html

National Contact(s):
Office of Small and Medium Enterprises
Public Works and Government Services Canada
11 Laurier Street
Phase III, Place du Portage
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.tpsgc-pwgsc.gc.ca/app-acq/pme-sme/osme-eng.html