Request for Proposal on Recruitment & Temporary Labour

Situation

  • The buyer wanted to go out to the market to consider a new Recruitment and Temporary Labour Agent
  • The business was not really unsatisfied with the incumbent provider, but wanted to consider alternative solutions that could include additional services as well as lower costs. 
  • Spend £1,200,000 a year for several sites across the United Kingdom
  • Contract had not been renegotiated for years

Solution

  • A structured Request for Proposal (eRFP) process was initiated
  • Stakeholder requirements added to the eRFP - suppliers were asked how they would handle things like Management Reporting, Quality Systems, Online booking etc.
  • Documents like purchasing terms & conditions, Service Level Agreement, Ordering & Management processes etc. uploaded to the eRFP
  • 50+ suppliers invited
  • To participate suppliers had to accept an NDA in order to be allowed access to the eRFP
  • Suppliers were given 2 weeks to complete their response
  • Built-in Question & Answer process to handle all queries

Result

  • About 20 suppliers could not meet the requirements so were excluded from the process
  • 29 suppliers were capable of handling the contract
  • Price indications showed a very tight competition and it was decided to proceed to an eAuction negotiation prior to award of contract

 

Quote from the buyer: 

I certainly enjoyed the process over a traditional negotiation. I think an eRFP process really puts suppliers in the right mind-set - suppliers see it as a very professional process