PEO Vendor Evaluations - The StaffMarket Request for PEO Proposals (RFP)

What is an RFP?

A Request for Proposal (RFP) is your formal notification to PEO service providers that you will consider engaging their services and to invite their proposals for your company.

A Request For Proposal (RFP) is a formal method companies use to notify vendors they intend to purchase goods and/or services and invite proposals.

What is an RFP used for?

A StaffMarket RFP puts you in control of selecting your PEO service provider . Your StaffMarket RFP:

• Ensures that you only deal with PEOs that have the services you want.
• Ensures you receive proposals from PEOs that are easy to understand and compare.
• Notifies PEOs that they need to put their best price "up front".

Large companies have traditionally had large amounts of money and risk invested in the purchase of goods and services from vendors. They have developed and implemented the RFP process to:

• Ensure that vendors can deliver the product or service required by the customer.
• Standardize the vendor's proposal for ease of analysis and comparison.
• Notify vendors that the purchase is being competitively bid.

What is in
an RFP?

At StaffMarket, your RFP will contain instructions to each qualified PEO* regarding:

• Specifications: When you build your RFP at StaffMarket we will guide you in defining the services, payroll and employee benefits that you require. This provides the basis for your RFP specifications to the PEO.
• Proposal Content: Instructions on what each PEOs proposal should contain, including easy to understand data on service pricing.
• Timing: When you "kick off" your StaffMarket RFP, you define the date you must have completed proposals from the qualifying PEOs.

An RFP contains instructions to the vendor on:

• Specifications: RFPs contain detailed information on the specifications of the product or service the buyer is seeking.
• Proposal Content: The RFP contains specific instructions on how the response (a proposal) should be prepared.
• Timing: When does the business expect the proposals? Commonly known as the RFP close date. This allows the company issuing the RFP to plan their decision making process schedule.

What is the advantage of using an RFP?

Product Purchase Satisfaction: When you run a StaffMarket RFP you ensure that the proposals you receive are from vendors who have what you want. PEOs who can't deliver what you want are eliminated from consideration.

Product Price Satisfaction: When you run an RFP at StaffMarket you are making clear to the responding PEOs that they must compete on price. The clear presence of competition for your company's business will drive the best price.

Vendor Product Comparison: When the RFP is over and you have PEO proposals, you have an easier time comparing the vendors services and price because the StaffMarket RFP defined minimum data that the proposal should contain.

Time Savings: This is the best part of StaffMarket. At StaffMarket you can kick off an RFP in less than 30 minutes. Why waste time shopping only locally (with PEOs that may not have what you need) when StaffMarket can match your RFP with PEOs on a national level who have exactly what you want. Your time is valuable. Why deal with a parade of PEO salespersons who all ask the same questions over and over? Tell StaffMarket what you want.....we'll do the rest.

Product Purchase Satisfaction: Using an RFP allows the buyer to set the criteria it will use to evaluate proposals. It is made clear to vendors that proposals not meeting the requirements set forth in the RFP will not be considered. Without an RFP buyers may be tempted to buy "whatever walks through the door". This can result in customer dissatisfaction with the purchase due to poorly communicated product expectations.

Product Price Satisfaction: Using an RFP lets all vendors know that the purchase is being bid on by others. This usually gives the vendor an incentive to put their best price on the first proposal.

Vendor Product Comparison: When the RFP has expired and the buyer has proposals, side by side comparisons are possible because the vendor has responded to a common set of requirements. This helps prevent comparing "apples and oranges".

Time Savings: Although an RFP takes time to prepare, the time spent preparing an RFP is usually more than offset by the time saved explaining the requirements to every vendor and doing the "best price" dance. Buyers do not waste time with vendors who cannot deliver the product or services they require.