When buyers or procurement managers say part of their job is buying professional services what do they actually mean? Professional services can cover many areas, strictly speaking being a professional is someone who has the accreditation, training and work experience in a particular field of expertise. A wider view of professional services is any offering requiring specialist services such as PR, advertising, legal, IT consultancy or Management Consultancy. The output being bought is knowledge.
Typically when assessing the value of consultancy services we score quality and price separately. Let’s start with quality, where do you sit in the spectrum of understanding what your internal client is buying? For those who have no idea about how to influence the quality perhaps it’s easier to stick to transactional contributions like formatting the ITT documents, sending the ITT via the e-procurement portal and advising on procurement compliance. This may be one element of your role but you need to ask where is the real value being added? Some Procurement managers may advise against talking to the market before a tender is issued through fear of the client selecting a favourite supplier who they like and decide to base their specification the supplier’s solution even before formal competition has started. A good procurement professional should add value and have confidence in speaking to the market pre- formal procurement.
Buying professional services can be complex, work with suppliers in the market place to discuss the brief in detail, don’t be afraid to ask for pre-market engagement and listen to their feedback if useful incorporate this into the specification. Avoid bias by opening up the conversation to the industry and hold a supplier day for fairness and transparency.
Focusing on the price element this may comprise of hourly or daily rate and perhaps utilisation. It’s easier to keep this relatively simple because driving down price to the granular detail detracts from the bigger prize, the solution the professional services will provide which should have an ROI that exceeds a few percent extra savings on price. This isn’t to say that we shouldn’t scrutinise price at all, it should be done proportionately.
Source below Chartered Management Institute
Request for Proposal (RFP) for Professional Services Outline Structure
Introduction: [Provide a brief overview of your organization, the purpose of the RFP, and the scope of services being sought.]
Objectives: [Outline the objectives and goals that the selected vendor(s) are expected to achieve through the provision of professional services.]
Scope of Work: [Detail the specific services required, including tasks, deliverables, and any related activities. Include information about the duration of the contract and any potential extensions.]
Qualifications and Experience: [Specify the minimum qualifications, certifications, and relevant experience required from prospective vendors. This may include details about the vendor’s track record, expertise in similar projects, and references.]
Technical Requirements: [Describe any technical requirements or capabilities necessary for the successful delivery of the services. This could include software, equipment, infrastructure, or other technical specifications.]
Deliverables: [Clearly define the expected deliverables, milestones, and timelines for each phase of the project. Include quality standards and acceptance criteria for deliverables.]
Pricing and Payment Terms: [Provide instructions for vendors to submit pricing proposals, including any budget constraints or limitations. Outline the payment terms, schedule, and methods of payment.]
Proposal Evaluation Criteria: [Specify the criteria that will be used to evaluate proposals, such as qualifications, experience, technical capabilities, proposed approach, pricing, and references.]
Submission Requirements: [Detail the format, content, and deadline for submitting proposals. Include instructions for addressing any questions or clarifications.]
Terms and Conditions: [Include any legal or contractual terms and conditions that will apply to the engagement, such as confidentiality, intellectual property rights, indemnification, and termination clauses.]
Selection Process: [Outline the process for evaluating proposals, conducting interviews or presentations, and selecting the preferred vendor(s). Include information about the timeline and communication protocols.]
Contact Information: [Provide contact details for inquiries, clarifications, and submissions related to the RFP.]
Appendices: [Include any additional documents or appendices that may be relevant to the RFP, such as sample contracts, service level agreements, or terms of reference.]
Writing a specification
