Request For Proposal (RFP)

Choosing the right consultant/consultancy services

What is RFP?
• An RFP is a formal request in which the issuer asks prospective
bidders to submit proposals demonstrating how a product or service
they offer can address one or more of the issuer’s key business needs
• The request sets out specifications describing the solution it seeks
and evaluation criteria disclosing how proposals are graded
• RFPs may include a statement of work describing tasks to be
performed and a timeline for providing finished work
Understand when RFP is the right choice
• If you are already leaning strongly to hiring a specific consulting firm,
please don’t issue an RFP. Just ask that consultant to write a proposal
and, if it’s what you wanted, figure out how to hire them directly.
• Writing an RFP takes time and you don’t need to spend it if you really
are planning to pick between a few known consultants. Instead, just
call and tell them what you are looking for and ask them to put
together a proposal. They will ask you all the clarifying questions
necessary to put together a good proposal that will meet your needs
(if they don’t, they aren’t who you want to hire anyway).
Avoid Generic RFPs
• A company decides it needs a new consultant, so several employees
sit down and think of all the things they do
• They send the RFP to every potential IT consultant they can think of
• Prospective consultants practically try to meet all the
RFP requirements and end up rushing to meet the deadline
• The company that issued the RFP then examines all the proposals that
were submitted and compares them.  Ultimately, they decide that
some of the proposals are basically offering the same
products/services, so they choose the lowest-priced bid.
• The “winner” ends up doing a lot of work for too little money.
Focus on results/deliverables
• If you have a good idea of what type of solution you want, but you’re
still open to hearing vendors’ creative solutions, it’s time for an RFP
• If you write an RFP, in the scope of work description, focus on the
result you want, not the micro steps you expect it will require
• The best RFPs refrain from outlining the exact scope of work and
focus instead on the result or impact desired.
• Good consultants are experts in a range of tools and approaches and
you want to put them to work in the proposal recommending an
approach that best fits the requirements
• Stay open to suggestions during the RFP process
Elements To Include in RFPs

• “The statement of purpose.”

• “Background information.”
• “Scope of work.”
• “Outcomes and performance standards.”
• “The deliverables.”
• “Terms and conditions.”
• “Payments, incentives, and penalties.”
• “Contractual terms and conditions.”
• “Requirements for proposal preparation.”
• “Evaluation and award process.”
• “Process schedule.”
• “Contacts.”
Sample RFP: DENA BANK (now BoB)
(Reproduced From Public domain for academic purpose only)

• Date and Time deadlines related to submission of queries and

proposal along with contact person/details
• Fact Sheet summarizing method of evaluation of bid, earnest money
deposit and details of pre-bid meeting
• Fact sheet summarizing scope of work and delineation of phases
• Fact sheet summarizing how bids are to be presented, validity period
of bids, payment details and penalty clauses
1.2 Background Information

• 1.2.1 Basic Information

• a) Dena Bank (“Bank”) invites responses (“Proposals”) to this Request for Proposals
(“RFP”) from consulting agencies (“Bidders”) for appointment of a technical and
project management consultant for the on-going and new Information Technology
initiatives to be undertaken by the Bank over a period of the next 2 year as
described in Section 1.8 of this RFP, “Scope of Work” (“the Services”).
• b) Any contract that may result from this RFP will be issued for a term of 2 years
(“the Term”).
• c) Bank reserves the right to extend the Term for a period of 3 months at no extra
cost.
• d) Proposal must be received not later than time, date and venue mentioned in
the Fact Sheet. Proposals that are received after the deadline WILL NOT be
considered in this process.
1.2 Background Information
• 1.2.1 Project Background
• The Bank has laid out an ambitious plan for accelerated growth in terms of
business, profits and outreach. In this context, there is a need for technical
consultant for the on-going and new Information Technology initiatives to
cater the requirements arising out of the envisaged growth plan of the Bank
• The Bank wishes to appoint a competent technical consultant for its various
IT projects and initiatives proposed to be taken up in the next one year. The
advisory services of the consultant are required for all phases of the
proposed IT projects of the bank and includes inter alia, defining the
strategy for the IT project, current system study, defining specifications and
requirements for the projects, preparation of RFP, vendor evaluation and
selection and project managing the implementation. The Consultant will be
responsible as per the scope outlined in the section.
1.2 Background Information
• 1.2.2. Key Information
• Prime objective of the Project is to enable the Bank to scale new heights in the areas of
Information Technology.
• The technology environment is ever changing which necessitates a re-look and a constant
update of the technology plan of any organization. Given this ever-changing technology
environment and the background that the bank's requirements would be varied and
recurring in nature, bank envisages the need for consulting assistance on a retainership basis.
The overall scope defined in this RFP document is indicative and only mentions the broad
areas from which the specific requirements would be derived from. The specific
requirements of the bank during the period of contract would purely be on a need basis and
made known to the selected consultant
• Bank will provide following support, post the award of the contract to the successful bidder:
1. Provide understanding of existing processes
2. Provide the information on current IT infrastructure already available
3. Any technical infrastructure support
1.2 Background Information
• 1.2.3. About the Bank
• Dena Bank is one of the Public Sector Banks in India with a network of over 1740 Branches and
29 Zonal Offices. At the end of May 2015, the Bank has total business mix of Rs. 1,83,769 cr with
total deposits at Rs1,06,864 cr, and total advances at Rs. 76,905 cr.
• Current High Level Technology environment: All the Branches of the Bank are brought under
Core Banking Solution i.e. Finacle 7.0.25. Bank has also implemented a suite of applications,
integrated with the CBS solution such as:
• Internet & Mobile Banking – Finacle e-Banking & PayMate
• Helpdesk & Call Centre – HP SM7 & Aspect
• Biometric Authentication: BAS Smartchip
• Anti Money Laundering - AMLOC
• Loan Origination System – Sysarc, Loan Application Processing System (LAPS)
• HRMS – Oracle PeopleSoft
• Treasury – Kastle
• Risk Management (Credit /Operational / Market) - SAS
1.3 Instructions to the Bidders

• 1.3.1 General
• a. While every effort has been made to provide comprehensive and accurate
background information and requirements and specifications, Bidders must form their
own conclusions about the consultancy support required. Bidders and recipients of
this RFP may wish to consult their own legal advisers in relation to this RFP.
• b. All information supplied by Bidders may be treated as contractually binding on the
Bidders, on successful award of the assignment by the Bank on the basis of this RFP.
• c. No commitment of any kind, contractual or otherwise shall exist unless and until a
formal written contract has been executed by or on behalf of the Bank. Any
notification of preferred bidder status by the Bank shall not give rise to any
enforceable rights to the Bidder. Bank may cancel this public procurement at any time
prior to a formal written contract being executed by or on behalf of the Bank.
• d. This RFP supersedes and replaces any previous public documentation &
communications, and Bidders should place no reliance on such communications.
1.3 Instructions to the Bidders

• 1.3.2 Compliant Proposals/Completeness of Response

a. Bidders are advised to study all instructions, forms, requirements,
appendices and other information in the RFP documents carefully.
Submission of the bid/proposal shall be deemed to have been done after
careful study and examination of the RFP document with full understanding
of its implications.
b. Failure to comply with the requirements of this paragraph may render the
Proposal non- compliant and the Proposal may be rejected. Bidders must:
i. Comply with all requirements as set out in this RFP.
ii. Submit the forms as specified in this RFP and respond to each element in
the order as set out in this RFP
iii. Include all supporting documentations specified in this RFP
1.3.3 Pre-Bid Meeting & Clarifications

• 1.3.3.1 Bidders Queries

a. Bank shall hold a pre-bid meeting with the prospective bidders on 23/06/2015 at
3.00 p.m. at Dena Bank, Dena Corporate Centre, First Floor, Meeting Room, C-10, G
Block, Bandra Kurla Complex Bandra (E), Mumbai 400 051

b. The Bidders will have to ensure that their queries for Pre-Bid meeting should reach
to [email protected]; on or before noon of 23/06/2015.

c. Queries should necessarily be submitted in a designated format

d. Bank shall not be responsible for ensuring that the bidders queries have been
received by us. Any requests for clarifications after the indicated date and time may not
be entertained by the Bank.
 1.3.4 Key Requirements of the Bid
• 1.3.4.1 Right to Terminate the Process
a. Bank may terminate the RFP process at any time and without assigning any reason.
Bank makes no commitments, express or implied, that this process will result in a
business transaction with anyone.
b. This RFP does not constitute an offer by Bank. The bidder's participation in this process
may result in Bank selecting the bidder to engage towards execution of the contract.
1.3.4.2 RFP Document Fees
• Tender document may be downloaded from the Banks website(hard copies of the
tender document will not be provided) and non-refundable tender fee of 10,000/=
( Rupees Ten thousands only)should be deposited to the account as per the details
hereunder and copy of transaction receipt has to be submitted on or before last date of
the tender submission.
• Proposals received without or with inadequate RFP Document Fees shall be rejected.
1.3.4.4 Submission of Proposals

• a. The bidders should submit their responses as per the format given in this RFP in
the following manner
 Response to Pre-Qualification Criterion - (1 Original + 1 Copy + 1CD) in first
envelope
 Technical Proposal - (1 Original + 1 Copy + 1 CD) in second envelope
 Commercial Proposal - (1 Original) in third envelope
• b. The Response to Pre-Qualification criterion, Technical Proposal and Commercial
Proposal (As mentioned in previous paragraph) should be covered in separate
sealed envelopes super- scribing “Pre-Qualification Proposal”, "Technical Proposal"
and “Commercial Proposal” respectively. Each copy of each bid should also be
marked as "Original" OR "Copy" as the case maybe.
• c. Please Note that Prices should not be indicated in the Pre-Qualification Proposal
or Technical Proposal but should only be indicated in the Commercial Proposal.
1.3.5 Preparation and submission of Proposal
• 1.3.5.1 Proposal Preparation Costs
• The bidder shall be responsible for all costs incurred in connection with participation in the
RFP process, including, but not limited to, costs incurred in conduct of informative and other
diligence activities, participation in meetings/discussions/presentations, preparation of
proposal, in providing any additional information required by Bank to facilitate the
evaluation process, and in negotiating a definitive contract or all such activities related to the
bid process.
• 1.3.5.2 Language
• The Proposal should be filled by the bidders in English language only. If any supporting
documents submitted are in any language other than English, translation of the same in
English language is to be duly attested by the Bidders. For purposes of interpretation of the
documents, the English translation shall prevail.
• 1.3.5.3 Venue & Deadline for Submission of proposals
• Proposals, in its complete form in all respects as specified in the RFP, must be Submitted to
Bank at the address specified below
• 1.3.5.4 Late Bids
1.3.7 Evaluation process
• a. Bank will constitute a Proposal Evaluation Committee to evaluate the responses of the
bidders.
• b. The Proposal Evaluation Committee constituted by the Bank shall evaluate the responses
to the RFP and all supporting documents/documentary evidence. Inability to submit
requisite supporting documents/documentary evidence, may lead to rejection of bid.
• c. Decision of the Proposal Evaluation Committee in the evaluation of responses to the RFP
shall be final. No correspondence will be entertained outside the process of evaluation with
the Committee.
• d. The Proposal Evaluation Committee may ask for meetings/presentations with the Bidders
to seek clarifications on their proposals
• e. The Proposal Evaluation Committee reserves the right to reject any or all proposals based
on any deviations.
• f. Each of the responses shall be evaluated as per the criterions and requirements specified
in this RFP.
1.3.7 Evaluation process
• 1.3.7.1 Tender Opening
• The Proposals submitted upto 3.00 pm on 14/07/2015 will be opened at 3.30 pm on 14/07/2015 by
officer authorized by the Bank, in the presence of such of those Bidders or their representatives who may
be present at the time of opening.
• The representatives of the bidders should be advised to carry the identity card or a letter of authority
from the tendering firms to identify their bonafide for attending the opening of the proposal.
• 1.3.7.2 Tender Validity
• The offer submitted by the Bidders should be valid for minimum period of 180 days from the date of
submission of Tender.
• 1.3.7.3 Tender Evaluation
• a. Initial Bid scrutiny will be held and incomplete details as given below will be treated as non-
responsive. If Proposals;
 Are not submitted as specified in the RFP document
 Received without the Letter of Authorization (Power of Attorney)
 Are found with suppression of details
 1.4 Criteria for Evaluation

• 1.4.1 Pre-Qualification Criteria

• Sales Turnover (Supporting Financial documents)
• Technical Capability (Completion certificates or Work orders from clients)
• Certifications (Copies)
• No Consortium (Self Declaration)
• Legal Entity (Registration no as per company’s act)
• Manpower strength (Self-certification by authorized head)
1.4.2 Technical Qualification Criteria
• Technical Evaluation Criterion

• Past Experience of Firm (60 Marks)

• Experience of Key Personnel (25 Marks)
• Financial Strength of consultant (15 Marks)

*It is mandatory that bidder to provide details of project handled, brief of the assignment,
period relevant to scope of the tender.

Bidders, whose bids are responsive, based on minimum qualification criteria as in Pre-Qualification
Criteria and score atleast 70 Marks from the technical evaluation criteria would be considered as
technically qualified.
1.4.3 Commercial Bid Evaluation
• a. Commercial evaluation will be through Online Reverse Auction. However bidders
are required to submit indicative commercial offers along with technical offers. The
indicative commercial offers will be opened before reverse auction in the presence of
the technically qualified bidders.
• b. Technical scores obtained by each bidder will be finalized and put in sealed
envelope in the presence of the bidders before the reverse auction. The envelope will
be opened in the presence of the bidder after the completion of the reverse auction.
• c. Lowest Financial Bids of technically qualified bidders quoted during the online
reverse auction will be considered for calculation of financial score as mentioned in
point-e below.
• Financial Score of a Bidder (Fn) = {(Commercial Bid of L1/Commercial Bid of the
Bidder) X100}% (Adjusted to two decimal places)
• d. Bid price should be inclusive of all fees, expenses, taxes except service tax which
will be paid on actuals
1.4.4 Combined and Final Evaluation
• a. The technical and financial scores secured by each bidder will be added using
weightage of 70% and 30% respectively to compute a Composite Bid Score.
• b. The bidder securing the highest Composite Bid Score will be adjudicated as
the most responsive Bidder for award of the Project. The overall score will be
calculated as follows:-
• Bn= 0.70*Tn +0.30*Fn where
Bn = overall score of bidder
Tn = Technical score of the bidder (out of maximum of 100marks)
Fn = Normalized financial score of the bidder
• c. In the event the bid composite bid scores are “tied‟, the bidder securing the
highest technical Score will be adjudicated as the Best Value Bidder for award of
the Project.
1.8 Scope of Work
• 1.8.1 Project Objective
• The Bank wishes to appoint a competent technical consultant for its various IT
projects and initiatives proposed to be taken up in the next 2 years. The advisory
services of the consultant are required for all phases of the proposed IT projects of
the bank and includes inter alia, defining the strategy for the IT project, current
system study, defining specifications and requirements for the projects, preparation
of RFP, vendor evaluation and selection and project managing the implementation.
The Consultant will be responsible as per the scope outlined in the below section.
• The scope shall be divided into two phases.
 Phase 1: The bidder shall review the IT framework and formulate the IT Strategy. This
phase shall be completed within duration of 6 months.
 Phase II: The bidder shall assist the bank in implementation of the recommendations
identified during Phase I. This phase shall be completed preferably within 18 months.
Phase I: Review the IT framework and formulate the IT Strategy

• The bidder shall review the current IT framework and formulate the IT Strategy for
the Bank. The bidder is expected to perform a detailed assessment of the technology
framework of the Bank. The detailed assessment should be aimed at reviewing the
technology framework not only from the perspective of the current business
requirements but also consider the future business growth (expected estimate of
20% YOY growth), regulatory, risk and technology trends. The assessment should
guide and assist the Bank in optimizing the current technology deployment as well as
adapt for future demands. The assessment shall, at least, cover the following areas:
• Renewal of CBS outsourcing agreement
• Review of current IT infrastructure/framework
• Review of IT Governance/Security
• Finacle Migration
• Regulatory Compliance
• Banking Trends
 Phase II: Implementation of the recommendations identified during Phase
I

The bidder and the bank shall collectively discuss and agree upon the
criticality, roadmap & priority to be adopted and month wise implementation
plan / timeline of each of the gaps observed / recommended initiatives those
to be undertaken during the next 18 months
The bidder is expected to use its own expertise in determining the
recommendations from the IT Strategy. The scope for Phase II is as defined
below:
1. Providing Assistance to Dena Bank on all Information Technology related aspects

2. Provide Assistance for Vendor Evaluation and Selection for IT related tasks and projects

3. Testing Services

4. Provide Project Management Assistance for Implementation IT Projects

1.9.1 Deliverables &Timelines

• Phase I-Milestone-Timeline (6 months)

• Phase II-Milestone-Timeline (18 months)
• Total -24 Months extendable under same terms and conditions upto 3
months
1.10 Payment Schedule
• No advance will be paid.
• The payment for Phase-I (30% of Cost quoted for Phase-I & Phase-II)
shall be made upon the acceptance of the deliverable by the
competent authority or within 60 days from the submission of the
final deliverable, whichever is earlier.
• The payment for Phase II shall be payable on achievement successful
milestones defined in phase-I, on a monthly basis equally of the
balance 70% of cost subject to delivery of agreed milestones.
Payment Terms & Conditions
a. The taxes would be paid as extra at the prevalent rates.
b. Out-of-pocket expenses would be payable at the discretion of the
Bank as per applicability of rules for a Chief Manager.
1.11 Support to be provided by Bank
• Bank will provide the following support, post the award of the
contract to the successful bidder:
• 1. Provide understanding of As-is processes
• 2. Provide the information on current IT infrastructure already
available
• 3. Any technical infrastructure support
• 4. If required, office facilities for on-site Resources will be provided at
Mumbai
1.12 Change Request
• Following would constitute a Change request
a. Any work which has not been specifically mentioned in the scope of
work
b. Any changes in the deliverables post approval by the client
c. Bid Process Management in case of re-tendering is to be done for
reasons for which the Consultants are not responsible
d. Any delay in the Project timelines beyond the calendar time
mentioned in the tender document for which Bidder is not directly
responsible
1.14 Penalty Clause
• 1.14.1 Penalty for exit/replacement
• a. Replacement of resources shall generally not be allowed. The
replacement of resource by bidder will be allowed only in case, the resource
leaves the organization by submitting resignation with the present employer.
• b. In case of failure to meet the standards of the Bank, (which includes
efficiency, cooperation, discipline and performance) bidder may be asked to
replace the resource without any penalty for replacement/exit
• 1.14.2 Penalty for absence
• In the case of absence (apart from allowed leaves) of a resource during
project period, no payment will be made for the days a resource is absent
Appendix I: Pre-Qualification & Technical Bid Templates

• Forms to be used in Pre-Qualification Proposal

• Form 1: Compliance Sheet for Pre-qualification Proposal
• Form 2: Particulars of the Bidders
• Form 3: Bank Guarantee for Earnest Money Deposit (EMD)
• Form 13: Integrity Pact
• Forms to be used in Technical Proposal
• Form 4: Compliance Sheet for Technical Proposal
• Form 5: Letter of Proposal
• Form 6: Proposed Approach & Methodology
• Form 7: Proposed Work Schedule &Project Plan
• Form 8: Deviations
• Form 9: Team Composition and their Availability
• Form 10: Curriculum Vitae (CV) of Key Personnel
• Form 11: Deployment of Personnel
• Form 12: Reference Site Details
• Form 14: Template of the contract agreement to be executed
Appendix II: Commercial proposal Templates
• Form 1: Covering Letter
• Form 2: Commercial Bid Template

• Acknowledgement www.denabank.com Archives