A request for proposal (RFP) is a formal document an organization uses to invite proposals from potential providers, such as parking operators, technology vendors, consultants or design-build teams. Unlike a bid on a fixed specification, an RFP asks respondents to propose how they would meet the owner’s needs.
In parking, RFPs are used to select operators, buy PARCS and enforcement systems, hire design teams and award concessions. The quality of the RFP largely decides the quality of the proposals, because respondents can only answer the questions they are asked.
What a strong parking RFP includes
- Clear objectives. What the owner wants to achieve, such as revenue, customer experience or sustainability, not just what it wants to buy.
- Current data. Occupancy, transactions, revenue and equipment inventory, so respondents price on facts.
- Defined scope and term. Facilities, services, responsibilities and contract length.
- Evaluation criteria. How proposals will be scored and how price is weighed against qualifications. See best value procurement.
- Contract terms. The draft agreement, including data ownership, performance standards and termination.
- Questions and site visits. A process for clarifications, shared with all respondents.
The Parkonomics view
An RFP is the owner’s first and best chance to set expectations. Specify the outcome and the data, and leave room for respondents to show how they would deliver it.
Related terms: Best Value Procurement, Owner-Operator Agreement, Design-Build, Parking Concessionaire, Software as a Service, LPTA