A Request for Proposal can be a useful tool in selecting a Relocation Management Company

(RMC). When done correctly, it allows your company to compare services, culture and

pricing among various relocation providers in an efficient format. This guide has been

created to assist you in the process.

Navigating the RFP Process

What Type of Request Do I Need?

RFI

RFP RFQ

Gathers informationusually to narrow the

supplier field. Does notrequest pricing. Is not an

invitation to bid.

Invites suppliers tosubmit business

proposals. Usually hasdetailed questions thatwill allow comparisons

between suppliers.

A process to invitesuppliers to bid on a

specific good or service.Often used when price is

the only factor.

Navigating the RFP Process

Create a Project Plan

ST

EP1

Form a Mobility Selection Team

This will usually consist of Senior Management, Procurement,Human Resources, Payroll, Information Technology and Legal.Make sure all the company’s stakeholders are included. Identifyeach team member’s role and responsibilities.

Do Your Homework

Distinguish between what your company wants and what itneeds. Consider your relocation program’s history. Researchcurrent best practices and trends. Why are you going out to bid?Is this to check market pricing, due to quality issues with yourcurrent supplier or is this just a bid cycle? All stakeholders shouldexpress their vision for their new relocation service provider.

What Will TheWinner Look Like

Create a scoring matrix. Weight each question in yourquestionnaire based upon key selection criteria. Determinewhich questions are most important to your company.

Project Timelines

Establish milestones and assign a projected timeline for eachstage. Laying out the process from start to finish is critical. A wellthought out plan can save you a lot of time andmoney. Determine who is responsible for each task. An effectiveprocess will usually have a six month timeline from initiation toimplementation.

Navigating the RFP Process

Creating the RFP

ST

EP2

Description ofYourOrganization

Provide your corporate information. Include information on whyare you going out to bid and what key characteristics you arelooking for in the new provider. Why would they want to partnerwith your company?

Scope of Work

List your current relocation policies and allow forrecommendations. Furnish historical data about your program.Describe your mobility program objectives. What services areyou looking to outsource? How many employees do you relocateeach year? Breakdown this information by domestic andinternational, homeowner, renter and lump sum. Provideinformation about any tiered policies. What are your primaryrelocation/assignment locations? What is the average relocationhome value? It is important to provide as much detail as possibleto eliminate assumptions on the part of the supplier.

Organize theQuestionnaire

Key sections of an RFP typically include: Company Information,Account Management, Service Delivery, Domestic Services,International Services, Technology, Reporting, ExpenseManagement, Supplier Management, Implementation, ClientReferences and Pricing. If your company is experiencing specificproblems with their current provider, be sure to address those tosee if a new provider can offer a solution. Remove repetitivequestions and those that do not apply to your program.

Navigating the RFP Process

Creating the RFP(cont'd)S

TE

P2Award Criteria

Let potential suppliers know how you will be choosing who isinvited to deliver a best and final presentation and how theeventual supplier will be selected.

Timelines

Be realistic when you set deadlines. The more questions yourRFP contains, the more detailed the required response will beand the longer the time it will take suppliers to reply. Rememberto factor in weekends, holidays, internal vacations or travelschedules and the time it will take your team to meet, evaluateand score proposals. This will provide the timeline that you giveto bidders regarding how long the RFP evaluation process willtake, when the bidders will be notified of their selection in movingforward and when you expect implementation to begin. Provide acontact for all supplier questions. All other team members shouldnot meet or speak to potential suppliers during the RFP process.

Decide Who WillReceive The RFP

Not all RMCs are created equal. Performing a pre-screen RFI isone way to determine if a provider offers the services to meetyour organization’s needs. Through the RFI process, you cannarrow your potential supplier list to 4 or 5 bidders, considerablynarrowing down the volume of information you receive from yourRFP.

Navigating the RFP Process

Creating the RFP(cont'd)S

TE

P2

Decide How ToSend Out The RFP

What format do you want your RFP to be sent? How shouldresponses be submitted? Options include: online supplier portal,Word or Excel. If utilizing an online portal, be mindful ofrestrictions. Setting character limits, word counts or stipulatingthe type of response may prohibit prospective suppliers fromgiving an appropriate and in-depth response. Whatever formatyou choose, keep in mind that the purpose of the RFP is tocompare Relocation Management Companies. The services andpricing scenarios are much different than purchasingcommodities. Choose a format that will allow you to receive thebest responses and will be easy to collect and distribute amongthe selection team. Decide whether responses should be sent asa hardcopy submission or electronically. Today, most companiesrequest electronic submissions.

Evaluation & Selection3

ST

EP

The selection team should score responses based on the scoringmatrix created during the planning stage. Once completed, gatherall team members results and do a cost analysis.

Review &Scoring

Navigating the RFP Process

ST

EP

Evaluation & Selection(cont'd)

3Once the list of possible providers has been narrowed, conducttelephone interviews with the provided references. Discuss allaspects of the supplier’s performance. Remember that no vendoris perfect all the time so keep in mind that how a supplieraddressed issues or challenges is key. Always check referencesas part of your decision making process.

Check References

Schedule an on-site visit and presentation with your top 2-3choices. Give presenters adequate time to make travelarrangements. This is your opportunity to meet the account teamand ask in-depth questions. Ask presenters specifically what theycan do for your company. This is your chance to get a feel for asupplier's culture and the fit of your organizations. One suppliermay look perfect on paper, but if there is not cultural alignment,you are better off selecting a different provider. See demos andsample reports, discuss implementation expectations – anyadditional information that will give you a clear picture of theworking relationship with each potential vendor.

On-site Visits/Final Presentations

Awarding theContract

Before notifying the selected supplier, it is important that you callthe suppliers that were not awarded the contract. An explanationof why they were not awarded the business is especially helpfuland appreciated. Be honest in your evaluation and yourfeedback.

Navigating the RFP Process

Sample RFP Timeline

Aug

Aug 25 - RFP DistributionAug 29 - Supplier ConfirmIntent to Bid

Sept 3 - SupplierQuestions DueSept 8 - Replies Back toSuppliersSept 24 - RFP ResponsesDue by 5:00 PM CST

Sept

OctOct 15 - Best and FinalOffer PresentationsOct 22 - SupplierSelection/ContractNegotiation

Jan

Jan 1 - Initiations BeginOct 29 - Dec. 31 Implementation

Navigating the RFP Process

Mistakes to Avoid

Misunderstanding YourCompany’s Needs

Focusing on Price

Not Providing PolicyInformation to Bidders

Impractical Timelines

Inaccurate Volume

Performing adequate due diligenceis necessary to create a whole

picture of how relocation touchesvarious departments within your

company. Each provider will havedifferent strengths. Have a clearpicture of what a RMC needs tobring to your mobility program.

Policy information allows vendorsto prepare responses customizedto meet your company's individual

needs. Vague information willgenerate vague responses which

will make it difficult to properlyevaluate if a supplier can meet

your business needs.

Pricing in the relocation industry isbased upon volume. Pricing models

are typically based on a mix of servicefees, referral fees and bookingcommissions. Accurate volume

estimates will ensure you receiveappropriate pricing in your responses.

Setting a reasonable timeline canmake the difference between

receiving a thoughtful, customizedresponse and a rushed response.

Allowing time for a tailored responseand review will prevent costly

decisions.

Remember that relocation is a servicebusiness. The total value of the servicecannot be broken down to fee alone. If

you are focused only on price, youcould be be hindering your ability to

partner with the RMC that can provideyou the best solution.

Navigating the RFP Process

Inadequate PlanningPre-RFP planning is a critical elementof the process. Neglecting to take thenecessary time to properly map outthe entire RFP process from start to

finish can cost your company time andresources and delay implementation

of your mobility program.

Navigating the RFP ProcessCreating and responding to RFPs is a major

investment for both the client and the supplier so itis extremely important to allot enough time andresources to the process to ensure a successful

outcome. Establishing a quality method to managea cost effective and time sensitive bid process will

help you chose the best partner for your company'smobility program.

Paragon Relocation is the premier partner of choice in the global relocation management industry providinginnovative programs, value-added support, superior customer service and thought leadership to our clients andthe families we relocate. Our mission is to provide an extraordinary customer experience, one family at a time.Paragon Relocation has been providing relocation services for 28 years and offers services in 150 countries.For further information, please visit www.paragonrelocation.com.

Contact Paragon Relocation with any questions or for more information.w: www.paragonrelocation.come: info@paragonrelocation.com

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