The Most Common Pitfalls for Municipal ERP RFPs and How to Avoid them
Navigating the landscape of Municipal Enterprise Resource Planning (ERP) Requests for Proposal (RFPs) can be a daunting task for local governments. As organizations seek to modernize their systems and processes, the RFP process serves as a critical juncture. However, pitfalls abound, threatening to derail the procurement journey before it even begins. Drawing from research and firsthand observations, this article illuminates common stumbling blocks encountered in the RFI or RFP process.
From unrealistic timelines to vague objectives, overly complex requirements, and inadequate consideration of technology needs, each pitfall presents its own set of challenges. By understanding and addressing these pitfalls head-on, municipalities can navigate the RFP process with clarity and confidence, ensuring the selection of an ERP solution that meets their needs and propels them towards success.
a) Critical items missing from the list
b) Items included on the list that are not required
c) No distinction (or lack of clarity) between mandatory and optional items
Also, being overly precise and prescriptive in the RFP requirements may limit innovation and ability for process change, raising overall costs and discouraging vendors from proposing creative solutions including use of innovative technologies.
Instead, focus on a time and materials for consulting services and build cost assurance and shared responsibility into the project by mutually agreeing to a sufficiently detailed scope of work as part of contract negotiation with the chosen vendor.
a) Use of incorrect terms and phrases or requirements that do not align with your provincial, state, or federal legislation b) Too many functional questions overall, many of which may not even be relevant to your needs c) Unequal weighting of requirements to certain portions of your solution set. For example, we commonly see, in a single RFP, Human Resource sections containing 200+ functional questions while the property tax section contains only 10-15 questions in the same RFP. Given that property tax solutions are very specialized, have strict legislative requirements, and yet critical to municipal operations, a more balanced set of requirements should be targeted.
Lack of Stakeholder Involvement. Not involving relevant stakeholders early in the process can lead to misalignment of goals, requirements, and expectations.
Inadequate Communication. Poor communication with potential vendors, including unclear instructions or inconsistent responses to inquiries, can hinder the quality of proposals received.
Inadequate Evaluation Criteria. Lack of clear and objective evaluation criteria may result in subjective decision-making and difficulty in comparing proposals effectively. Some specific examples of things to include are:
Municipal focus. RFPs can often bring many vendors to the table including those with no tangible municipal experience. Ensure this is included in your evaluation criteria.
Vendors’ past performance or references. Avoid those with a history of poor execution or delivery.
Vendor stability and product roadmap. Avoid those that cannot demonstrate future corporate stability and a long term product roadmap.
