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RFP Equipment Acquisition Success in Details

Verbal instructions and proposals not adequate, says expert

ATLANTA — When it’s time to purchase new laundry equipment, either to outfit a complete laundry system or as an upgrade, how do you go about it?

That’s an important question. Once you’ve identified your goals regarding the equipment purchase, you could talk with vendors to find the machines you need to do the job.

The problem with that is that verbal requests and instructions and specifications can be misunderstood or not remembered correctly later on.

By submitting a written request for pricing/proposal (RFP) to vendors, you are better assured that you will be purchasing the right equipment for your company—the equipment to meet your production and operational goals.

Gerard O’Neill, president and CEO of American Laundry Systems, a division of E&O Mechanical, discussed, in depth, equipment RFPs and their importance and value during his recent Clean Show seminar titled The 411 on Equipment Acquisition.

The following advice comes from that presentation and can help you put together a more effective RFP the next time you need to purchase equipment.

GET IT IN WRITING

While it may seem obvious, if you don’t go through the RFP process, you can’t reap the benefits. O’Neill stresses that verbal instructions and proposals are not adequate.

“This will come back to haunt you,” he says.

At every point along a verbal trail, there is the chance for someone—including you—to forget some detail. That can lead to problems later on.

According to O’Neill, when handled correctly, an RFP can clearly detail the parameters of the project in terms of finances, benchmarks, expected outcomes and results sought.

“The proposals provide a basis for choosing among seeming equals,” O’Neill says. “The RFP and subsequent analysis of the RFP results will quickly show that not all are created equal.”

Also, the information provided by vendors in a written proposal, including its organization and level of detail, can reveal the quality of a vendor, according to O’Neill.

THE DETAILS

Vendors need as much detail as possible from you in order to put together a proposal. This can help prevent revisions and changes later on in the process.

“Not enough details equals not enough, or incorrect, information back from the vendors,” says O’Neill.

How far should you go when it comes to details? “Show [vendors] everything," he says.

His list of items to request includes many factors vendors need to make a RFP that is right for your company.

Vendors need to know how big the area is for the equipment. They need to know what your goals are for the equipment. They need to know if infrastructure connections are part of the RFP. They need to know the potential issues at the job/delivery site. They need to know dates and schedules.

Another area that may seem obvious, but can be overlooked, is who at your laundry will serve as the vendor’s contact.

Contact information is important, says O’Neill, adding that you don’t want a vendor talking to several different people in the company and possibly receiving conflicting information. O’Neill suggests no more than two contacts from your company.

A practical piece of advice for submitting an RFP O’Neill shares is to provide vendors with a layout/sketch of the area, or to put together a preliminary design to go with the RFP instructions. That doesn’t mean, however, that you are creating the design when it comes to your new equipment.

“Do not pretend to be the expert,” O’Neill says. “Highlight your needs and let the vendors do the work. Sometimes, there are advances that you don’t know about.”

CHECKLIST

O’Neill suggests providing a “classification list” in terms of equipment. That means providing the vendor with information such as the pounds or pieces you want to process, how many days of the week the equipment will be in operation and how many hours it will be in use, depending on the type of equipment you are purchasing.

For each piece of equipment you’re looking at, provide the vendors with an RFP checklist so that you both can be sure that the vendor is providing all of the information you need.

For example, O’Neill shares a checklist for material handling, washroom equipment, process water system, boiler system, water softener and finishing room equipment. Items for the vendor to provide include minimum wash time, technical specifications, utility consumption/connection details, installation and start-up guidelines, what training will be provided, warranty, support, and so on.

O’Neill also recommends asking vendors for value-added ideas. Ask for alternate proposals that are still based on your criteria and adhere to the original scope of work.

PROCESSING THE INFORMATION

“You are going to get a lot of information back, and you want all of that information,” he says.

There are several ways to analyze all of the information provided by vendors. First, create a vendor spreadsheet to organize all of the responses. Then, create a “points allocation table.” For this table, you need to come up with a point system to “grade” each vendor’s response to the items on your checklist, such as equipment requirements, warranty and services, and total pricing.

“It’s not all about price,” O’Neill says.

From all of this information gleaned from your written RFP, you will be able to narrow your search to approved vendors for each area in which you are purchasing equipment.

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(Image licensed by Ingram Publishing)

Have a question or comment? E-mail our editor Matt Poe at [email protected].