Put it in Writing: What Do You Need from a Provider?

"Vendors often offer solutions before we and they fully understand the problem. This leads to partial fixes. It is really important in the early stages to define goals more clearly."
-- A Nonprofit Executive Director

Finding good help from outside a nonprofit organization can be a major challenge. In the area of technology, many nonprofits do not have the time or in-house expertise to properly assess provider performance, expertise, or products. As many nonprofits have learned, the consequences of handing over too much decision-making power to an outsider in the early stages of a project can be devastating, not to mention costly.

Thus, many nonprofits choose to outsource technology services. After you have determined that you may benefit from a technology solution and know that you need to outsource this solution (See article "Determining Whether to Outsource "), have analyzed the problem to be solved, and determined what type of provider you need, you are ready to begin your search.

Identify Your Needs

Once you have a general idea of what you need and the type of consultant or vendor you'll need to do the work, the next step is to specify your needs in detail. This is an important step as it can help keep the providers focused on what you need. For example, if you are seeking a database provider, you need a written description of the types of reports you want the system to generate, the types of information it needs to capture, how many users need to be accommodated, whether the system needs to integrate with other databases or your Web site, and your existing hardware and operating system compatibility needs. If you are seeking a Web developer, you should have a written description of the audience, purpose, content, and functionality that you require.

These functional specifications or requirements form the core of a document that could be a Request for Proposal (RFP), a Request for Information (RFI) or simply a "fact sheet." (For more information on outsourcing specific technology need see the other articles in this series "Outsourcing Your Technology Needs ".)

The document will serve as a tool for formalized interaction with potential providers. It allows your team to collect information in a consistent format to aid easy comparisons.

The document might contain three main areas -- your project description, project specifications, and information you want to learn about the provider. For example, it could cover the following points:

Organizational background

• Your organization's mission.
• Your organization's programs.
• Your current business systems environment.

Describe your project

• What problem are you trying to solve?
• What are your desired results? Be specific about what will be different once the project is implemented?
• Why is this project important to your organization?
• What is its total value of ownership? (See article on TVO)

Project requirements and functional needs

• What are the specific functions that you need from the solution? The more detailed you can get the better.
• Which of these functions are absolutely essential?
• Which of these functions are on your wish list as extras?

What do you want know about the providers?

• their experience with similar projects
• their general approach to projects
• how they've handled problems in previous projects
• their recommended solutions with a clear rationale
• their reaction to other solutions posed by other providers?
• their pricing and timeline
• why they want to work with your organization
• references from similar clients

The question of whether or not you should disclose your project budget is a tricky one. While it helps providers decide whether or not their product or service is the right fit, it is best not to put the dollar amount in writing, or every bid might come in at that amount. You can, however, discuss budget limitations verbally with a provider who asks during any pre-proposal inquiries you may receive.

The Scope of Your Search for a Provider

Next you'll need to determine the scope of your search to find a consultant or a vendor. How many people do you want to consider? Will you distribute your RFP/RFI to a large list of potential bidders and post it on appropriate electronic mailing lists? If so, be prepared to cull through a large number of responses. If you have done a great deal of early research, you may have already identified a short list of candidates to invite to bid on the project.

There are pros and cons to each approach, but don't reject a wider search simply because you don't have the staff to support it. This is where hiring an intermediary who can help you implement and manage the process can be an enormous benefit.

What you want to avoid is only inviting vendors or consultants who have contacted you as part of their marketing efforts. Your organization needs to define the vendor or consultant pool.

If you are working with an intermediary, this person may be able to provide you with a comprehensive or screened bidder list of consultants and vendors. If you are managing the search process in-house, you will need to compile a list of prospective providers that builds on your earlier research. Some techniques you might want to try:

1. Reach out to your colleagues in other organizations to see whom they interviewed.
2. Contact national and state associations if you are part of any and ask for referrals for technology consultants.
3. Ask for referrals from technology consultants you worked with in the past to see whom they would recommend you interview.
4. Query board, staff, and volunteers for referrals.
5. Identify any consultant directories that cover your geographic location.

Some organizations, whether working with an intermediary or managing the process in-house, have found that a two-step process for a broader search makes the task less overwhelming. The first phase is to set up a screening process by requesting a preliminary letter of interest and winnowing down the list to a workable number to invite to submit a written proposal. If you follow this course, here are some criteria to keep in mind as you are selecting candidates to submit proposals:

• qualifications and credentials
• availability and scheduling needs
• products and services
• experience with similar organizations
• recommendations from nonprofit colleagues

This approach is efficient because it limits in-depth proposal review to a small group (three to five) of top contenders that fit your organization's culture, staffing, and budget needs as well as meeting the functional requirements outlined in your RFP. To minimize your risk, it is wise to limit your pool to ones that have experience with organizations of a similar size and type. If this the first time you have contracted with this type of vendor or consultant, getting recommendations from colleagues at similar organizations is extremely valuable.