Items to include when writing an RFQ for a software project

In software development, a request for quotation (RFQ) is the essential. You can spend tons of time describing your project to each IT company whose services you consider to target. Or you can prepare one good RFQ (invitation to bid, kinda request for proposal (RFP) on a smaller scale) and send it to dozens of vendors if you need it.

The first way is long and can freeze your project start for weeks. The second way is short and enables you to enjoy an easy start.

So, let’s reveal what items we recommend you to include in your software RFQ and what exactly aspects they should cover.

Must-have items in software RFQ

Must-have items are the sections that are crucial for the correct assessment of your project. After all, you don’t want, for example, to start with $100 bid and end with a low-valued solution just because you haven’t presented the real picture of your project. Especially, this is crucial when it comes to a fixed-price pricing model and a waterfall software development.

Introduction

Your aim here is to get vendors familiar with your business and its environment. Thus, they can better understand the challenges you face now to solve and other project limitations.

Project overview

Reveal what domain you target now. This gives vendors a brief idea of deliverables you need. Disclose its end users and the project goal.

Project description in details

Describe here what services you need. Put here user stories or describe product functionalities in any other form. It is better if you organize this section as a list of bullet points with product functionalities (user stories) so that it remains perfectly readable even if you need a rich-feature product.

Project scope and expected deliverables

Clarify features of a minimum viable product and make clear what tasks software developers shall do first, second, third, etc. Put here numbers. You can break the project scope by tasks or services or any other way you choose. To clarify, this enables you to benchmark your vendor bids.

Technology stack

Write here technologies your outsourced software developers need to use to build a product. It should cover front end and back end aspects as well as the database. If there is a need to integrate the solution with other services, any special consideration regarding the development environment, and requirements to libraries and other tools to use, state it here.

Project milestones and deadlines

Set the exact date you plan to start your project. This gives vendors a clue to whether they can finish or arrange their other projects so that they will be ready to take over yours.

Define the date when you plan to get the first results (typically, this is the date for an MVP) and other milestones for the project pipeline.

General terms and conditions

Specify what pricing model you want to use. Here, you can choose one of three options:

• Fixed-price
• Time and material
• Dedicated development team

State maximum hourly rates you expect a vendor to charge for its software development outsourcing services. Define your budget for this project. Specify whether you have and intellectual property and need to protect it. If you have any other terms and conditions regarding the project, state them here as well.

Optional items in software RFQ

Optional items are the sections that enable you to organize your selection procedure in a more efficient way. You will spend just one extra hour to add these sections to your request for quotation before sending it to many software development companies. However, the result you get is saving hours on coordinating their clarifications and proposals as well as on benchmarking their bids.

Date of RFQ issue

Put the date when you send your RFQ to a vendor. Typically, all RFQs are sent in one day so that you do not need to change dates for each vendor.

Date proposal due

Point out bid deadlines. The exact deadlines vary depending on the software project size. For a small project, you may give vendors just one week to submit their bids if you have already done your shortlisting. Or, for example, two weeks if you are still in progress. For a large project, the timeframes may be up to a month.

Point of contact

Define a go-to person you assign to answer vendors’ clarifications and receive their bids. Clarify the person’s position in your company. List all the contacts you are willing to share so that vendors can use them to clarify some details of your RFQ and submit their bids. It can be an email, chat on the platform you reach the vendor, etc.

Method of submittal

Describe in what form you prefer to receive bids. Some vendors may insert their bids right into the body of their email or message. But is it convenient for you? Perhaps, you prefer them to attach the documents in MS Word or PDF format. Point out whether these documents should be password protected and your other requirements to the bid submittal.

Prequalification requirements

Declare what your specific requirements vendors shall meet so that you will include their bids in the list for further consideration. Most often, prequalification requirements touch the following items:

• Company size
• Skill level
• Domain expertise
• Number and duration of completed projects
• etc

Pricing template

It is good if all the vendors will structure their bids in a uniform manner. Well-structured bids are easy to read and compare. In other words, this can shorten your time to overview and benchmark them. So, prepare your pricing template and provide it as an attachment to your RFQ.

For example, you can organize the most important details in a table form. Include here tasks, their scope, offered hourly rates, task implementation costs.

Final thoughts

Still doubt whether you need to share more details about your project? Do not worry, if you omit something. An experienced vendor will always ask for clarification before sending you his bid. At least, this is the approach we follow at SOFTENQ.

Reach us. Share your vision and requirements. Together we will create a digital solution that benefits your business.