request for proposal

Long-Form RFP

The Long-Form Request for Proposal (RFP) service is the best option for organisations with annual payments volumes greater than $400 million as the RFP is sent to a broad range of service providers and the process allows for multiple rounds of pricing negotiation.

Key Phases

The key phases of the Long-Form RFP process are as follows:

  1. Prepare RFP – Working with the client we document any requirements not already included in our standard Long-Form RFP Questionnaire and collate annual payments data in a format that can be easily shared with RFP Respondents. Least-cost routing is always a mandatory requirement. We also agree with the client the evaluation criteria and minimum fee savings thresholds that must be met in order to justify changing service providers. At the conclusion of this phase, the Long-Form RFP is distributed to the incumbent service provider and up to 7 other service providers.
  2. RFP Response Q&A – RFP Respondents are provided 4 weeks to submit questions, prepare their response, and submit their response.
  3. Evaluate 1st Round Responses – The RFP Responses are assessed against the evaluation criteria and a shortlist of 2-3 service providers is determined. The shortlisted service providers are invited to present their proposed solution and response. Our Fee Savings Calculator reporting tool is utilised to show the projected fees savings that could be achieved with different service provider options.
  4. Best and Final Offer (BAFO) Pricing Submissions – Individual feedback sessions are held with each shortlisted service provider to provide guidance on areas where pricing needs to be improved before final BAFO pricing is submitted.
  5. Evaluate 2nd Round Responses – The RFP Responses from the shortlist are assessed against the evaluation criteria and a final service provider selection decision is made. Our Fee Savings Calculator reporting tool is utilised to show the projected fees savings that could be achieved with different service provider options.
  6. Contract Finalisation – Support will be provided with review and negotiation of the final contract with the successful service provider. However, the expectation is that during this phase the client and the client’s legal team will take the lead role in finalising the contract.

This process can take approximately 16-18 weeks from project commencement to contract execution. This timeframe is dependent upon the availability of the client for key meetings, and timeliness of client feedback and decisions.

We can manage the Long-Form RFP process on either a fixed price or share of projected Year 1 savings basis.

Card Scheme Negotiations

For organisations with significant payments volumes, we can also coordinate and lead discussions to negotiate strategic merchant rates directly with the card schemes. However, card scheme negotiations have the potential to further extend the project timeframe as international card schemes require strategic merchant rates to be approved at a regional level. An additional fee will apply where card scheme negotiations are required, and the fee basis will be the same as for the Long-Form RFP process.

To read recent client testimonials, please refer to the Case Studies section as these highlight the difference engaging Payments Consulting Network can make.

To find out more, please complete the contact form to provide further information on your organisation and requirements. We will then be in touch to schedule a call to discuss potential options and next steps.

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