The objective section is a summary of outcomes the organisation wants from the contract and the overall aim of the contract eg: Company Ltd anticipates cost savings by utilising the services of one primary provider nationally. It should also specify standards and overall results eg: DIFOT >97%.
It should state whether the contract will be awarded to single or multiple Tenderers and if joint (consortium) tenders are acceptable. It should also outline the tender process and the manner in which the contract will be awarded.
It should explain how much input to the day to day operations each stakeholder will have eg: co-development of standards.
This is also where other considerations (such as preferred standards) are listed. For example, the company may want to raise its Environmental and Social Responsibility profile so would prefer to work with Tenderers that have ISO 26000 and/or ISO 14001.
This section allows the Tenderer to get a concept of what your products/services actually are, how you currently handle them etc. For example, in an RFP for freight I include the following points:
Goods – What the goods are, weight and dimensions of the average carton; smallest carton and largest carton, seasonal ordering patterns, type of product eg: flammable, perishable.
Delivery – What the average consignment consists of by volume and weight eg: average number of cartons, weight and volume. I also include where-ever possible the annual throughput ie total number of consignments with total weight and volume. It is also good to advise them of any special handing requirements.
With the above information, the Tenderers can quickly ascertain how they will approach the project. As with most agreements of this type, the bigger the pie the more they can discount, but this is just an indicator, they will still need to put costs against a desensitized sample report of consignments (this will come later in the program).
Having information summarized at this point will prompt them to quickly review specific parts of the document or ask you targeted questions, while still early into the project. Remember: if one Tenderer has requested further information or clarification, you should provide the results to all Tenderers; this will ensure the playing field is kept level and there is no risk of accusations of preferential treatment.
Next post will be – “Objectives”