Get the business outcome you need
Procurement professionals don’t have it easy. Not only are they responsible for managing transaction risk, but they must also advise on structuring the transaction to get the desired business outcome.
A good guide to assessing whether your Request for Proposal (RFP) will achieve the desired business outcome is to apply a risk-based test. Generally, risks may be considered to be an adverse event that negatively affects the business outcome for the project.
In a risk based test, all the major risks that have the potential to adversely affect the project are documented and categorized. These categories become the Key Components, which define the structure of the evaluation.
When you see RFPs structured such that proponents are required to respond according to the structure of, for example: Design & Construction, Operations, Financing, Management, etc . – this is risk-based structuring at work.
A schematic for this process is provided below.
By using this as a guide, and supplementing with additional evaluation criteria as required, you’re on your way to having more successful procurements.