Training managers are often surprised when they receive vendors' proposals and see the wide disparity in prices and proposed solutions. One training manager at a pharmaceutical company received five proposals for the development of a CD-ROM to teach sales representatives about a new drug. The low bidder quoted $28,000 while the high bidder came in at $380,000 (the winning proposal was for $78,000). What explains this huge disparity? Quite simply, the training manager was not specific enough in his request to receive comparable and valid responses from the vendors.

Key Points in a Model RFP

A fair amount of analysis and planning needs to be done by the client in order to provide an appropriately specific request to a technology-based training vendor. Ideally, a needs analysis and high-level design document should be created prior to sending out RFPs to vendors.

Sometimes one vendor is hired to conduct the needs analysis, outline the learning objectives, and produce a high-level design document. Then the same vendor or others are asked to propose how to create the actual solution. Such detailed front-end work helps ensure that the end product will be an effective training tool delivered on time and on budget.

Vendors should be given at least two to three weeks to complete their proposals. Some managers believe that mandating quick turnarounds of a proposal, three days, for example, tests how professional and committed the vendors are. The theory is that only the best companies will be able to respond on time. In reality, the best companies are very thorough with their proposed solutions and very busy with existing clients. The companies more likely to respond to quick turnaround RFPs are those that are desperate for new business, or are overstaffed for their current workload. A quality company might submit a proposal that is 20 to 50 pages long, with detailed design strategies, sample screen images, and perhaps even a return on investment analysis. The extra information you receive from such a company will be worth the wait.

The Components of an RFP

A request for proposals (RFP) is a document that explains the training need, and provides details about the size and scope of the project. A complete RFP should include:

• Background on the student population.
• Outline of the content or learning objectives to be covered.
• Estimate of the total amount of learning time the finished program should include.
• Samples of any existing subject matter or description of available subject matter expertise.
• Description of the delivery technology, whether CD-ROM or Web-based.
• Description of the types of media to be used, such as whether audio or video will be included.
• Clear requests for vendor background information.

(See the e-Learning Guru Toolbox for a sample RFP document.)