Before digging in, double-check if you actually have to go to RFP. Are you legally required to submit RFPs for ERP software? Once that's figured out, read on.
Sometimes, life gives you lemons and you have to write an RFP. Sounds simple enough, right? It’s just a document asking vendors to submit proposals... But it can actually be pretty complex. It means you’re probably looking at a massive list of needs, a myriad of potential solutions, and—let’s face it—more than a few spreadsheets. And you want to get it right so you don't have a mutiny during implementation!
The process doesn’t have to be overwhelming. In fact, if done right, it can actually be a pretty smooth ride.
Just think of your RFP as a dating profile for ERP vendors. You’re laying out exactly what you need, and they’re responding with their best pitch to prove they’re “the one.” The better your RFP, the better your chances of finding the right match. (A little campy, but you get the point.)
With the right approach, you’ll craft an RFP that gets responses from vendors who actually meet your needs instead of sending a 200-page sales pitch full of fluff.
In this blog post, we’ll walk you through how to write an RFP for ERP software that is clear, concise, and organized. Along the way, we’ll share practical tips, best practices, and outlines (and some jokes, of course. Because why not? We all need a little humor in the public sector world).
Key Points:
Step 1: Assemble your Team
Step 2: Define Must-Haves
Step 3: Put it in Writing
Step 4: Leverage Expertise & Tools
Step 5: Communicate Like a Human
Step 6: Review & Revise
Step 7: Release the Kraken!
Step 8: Evaluate, Interview, and Accept a Proposal
Before we even think about writing an RFP, we need to gather the right people. (Think Avengers, but with no superpowers and a lot more numbers...) Who should be involved?
Finance Directors & Budget Gurus—They know what needs tracking and reporting.
IT Department—They’ll make sure it integrates with your existing systems.
Department Heads—Because HR, Payroll, and others have needs, too.
Procurement—They know the legal hoops to jump through.
Will you all agree on everything? Probably not. But getting everyone's input and utilizing their experience and knowledge will help in writing the RFP and be better for your agency in the long run. (And—bonus—it makes you look good as a professional.)
What does the ERP solution absolutely need to do? It must go beyond basic accounting. So, it’s crucial to do a little internal discovery work. You want to get crystal clear on what your organization needs from the new ERP system. And we’re talking everything from basic functionality to long-term goals.
If you miss this step, you risk buying a shiny, new (expensive) system that is great in theory, but doesn’t actually solve your problems. Here are a few questions to ask yourself and your team during this phase:
What are our current pain points with our existing system?
(Maybe it’s slow, outdated, or incompatible with other software.)
What specific tasks should the new system improve?
(Think accounting, budgeting, procurement, grants, payroll, etc.)
How many people will use the system, and what are their skill levels?
(An intuitive interface is always a bonus!)
What are our security and compliance needs?
(Public sector agencies have unique requirements here, so don't skip this.)
What kind of hosting do you want?
(On-Premises or cloud? Do you want people to be able to work remotely [cloud]? Do you want automatic software updates [cloud]or manually control that [on-prem]?)
What are your goals for implementation?
(Can you handle a phased rollout, or does it need to be all hands on deck?)
By answering these questions, you’ll start to get a clearer picture of the must-have features for your new ERP system.
With your internal needs list in hand, you’re ready to start drafting your RFP. Think of this as your official "blueprint" for selecting the right ERP solution. It'll guide both you and the vendors in understanding what’s needed, the scope of the project, and the requirements for a successful partnership. And remember, anything you ask for will need to be reviewed by your project team. So don't ask what you don't want to read.
Here’s a quick breakdown of the essential elements your RFP should include:
1. Executive Summary
Provide a brief overview of your organization and the purpose of the RFP. This sets the stage for the vendor and helps them understand your expectations. It’s also a good idea to include your current challenges and what you hope to achieve with a new ERP system.
What is your organization? (City, county, library, park, etc.? What do you do? What makes you unique?)
Why are you seeking a new ERP? (Is your current system outdated or inefficient? Is your current vendor inadequate? Do you need better customer service?)
What’s the goal of the project? (Increase efficiency, reduce costs, enhance reporting, get rid of paper, faster approvals, remote capabilities?)
2. Scope of Work
This section defines what the vendor will be expected to deliver. Be specific about the features, functionality, and services you need. You don’t want to leave anything to guesswork. After all, the more details you provide, the easier it will be to compare proposals later on.
What key features and functionalities do you need? (Accounting, HR, payroll, procurement, utility billing, etc.)
What software connections are required? (With your other systems like CRM, document management, etc.)
Do you have unique needs? (Do you have specific workflows or reporting needs?)
What are the implementation goals? (Provide clear and reasonable expectations.)
3. Technical Requirements
You wouldn't put new leather seats in a '95 beater car. You might just need a new car. The same can be said about purchasing modern ERP software without having the right IT equipment. So be specific and realistic about technical requirements and needs.
Do you want the ERP software cloud-based or on-premises? (Do you want remote options for employees who are sick or traveling, or do you want to manually control software updates and security?)
Should it be compatible with common operating systems, browsers, or mobile devices? (Think of the devices and programs you use now, but also what you'd like to use in the future.)
Does it need to meet relevant data protection laws? (GDPR, CCPA, SOC, HIPAA, etc.)
What aspects of protection should it have for managing sensitive data? (Encryptions, role-based access control [RBAC], two-factor authentication, audit trails, etc.)
Should the ERP integrate with third-party systems through APIs and pre-built connectors? (data synchronization, high availability, handles a certain number of concurrent users...)
What are your data migration needs? (Think what kind of conversion you want [bucket, transactional] and if that's a deal-breaker.)
4. Vendor Qualifications & Experience
You want a partner who knows the public sector, so ask for detailed qualifications and experience. Look for vendors who have worked with other similar organizations and can demonstrate a track record of success.
Do they have relevant experience? (With public sector clients and ERP implementations.)
Can they provide case studies or references? (This is important to verify past success.)
What certifications or awards do they hold? (This shows credibility.)
How long has the company existed? (This shows stability and longevity.)
Did the company develop or acquire its software? (This shows the level of dedication to the industry and product.)
Has the company been acquired or accepted investor money? (This speaks to its structure and priorities.)
5. Budget & Pricing Structure
Every public sector agency has a budget to adhere to, so be clear about your budget range. It’s also helpful to ask for a detailed breakdown of pricing. This will give you a better understanding of what’s included (and what’s not).
What is your budget and has the project been budgeted in this budget cycle? (This helps vendors assess whether they can offer a solution within your price range.)
Are elected officials aware of the project? (This gives the vendors an understanding of the project's importance.)
Ask for a clear pricing structure. What pricing models are you willing to select: traditional, SaaS, payment plan? (Get all costs outlined: licensing, training, maintenance, support, etc.)
6. Evaluation Criteria
How will you evaluate the proposals? Be transparent about your decision-making process. Let vendors know what’s most important to you: Is it the price? The functionality? The customer service? The vendor’s experience with similar projects? (And if you want groveling language in there too, by all means, include it... just kidding, please don't do that.)
Weight each criterion. (For example, functionality might be worth 40%, vendor experience 30%, and price 30%.)
Outline your scoring system. (This helps vendors understand what’s important.)
7. Timeline & Submission Requirements
This section details the timeline for the RFP process and what vendors need to do to submit their proposals. It includes deadlines, instructions on how to submit, and any documents they need to provide. (And, if you really want a particular vendor to respond, you can always email us, *ahem* I mean, them.)
When is the proposal deadline? (Make sure to give the vendors an appropriate amount of time to write their responses.)
What’s the evaluation timeline? (Give yourself enough time to go over the responses, conduct interviews, and meet with your team and any other stakeholders. But also, stick to your goal schedule.)
What are the format and submission instructions? (Want it in PDF, Word, PowerPoint? Want it sent to a particular email address or sent through the mail? Be specific.)
Are vendors allowed to ask questions or clarifications? (If so, how many and to whom? And can they include supplemental attachments to the proposal?)
Writing an RFP is no small feat, but don’t feel like you have to do it alone. There are options to partner with external experts or technology that can make the process smoother and more efficient.
Consulting Firms: Many organizations partner with consulting firms that specialize in ERP selection. These experts can help you refine your needs, create the RFP, and even guide you through the selection process. They bring industry experience and insights that can save you time and effort. (But also, they sometimes make the process too complicated, so be picky in your selection.)
ERP Vendors: Some ERP vendors (including us) also offer assistance in writing RFPs. They can help you craft a document that will clearly articulate your needs. While this might feel a bit like asking the fox to guard the henhouse, many vendors provide unbiased, professional help. This is simply because they know the industry and the other side of the RFP process.
AI Tools: There are AI tools like ChatGPT that can help automate parts of the RFP writing process. These tools can generate drafts and outlines, suggest relevant questions, and even help you evaluate vendor responses. They won’t replace human expertise, but they can speed up the process and ensure you’re covering all bases.
An RFP full of legal jargon and vague terms is a fast track to confusion. Clear and specific language is key. Instead of saying “robust reporting,” specify “ability to generate fund-based reports with drill-down functionality.” You want an ERP solution that actually solves your problem. And you need specifics to know if it can actually do that.
Once you’ve drafted your RFP, it's time for a review. Share it with key stakeholders in your organization, especially those who will be using the ERP system day in and day out. Get their feedback and make revisions as needed.
Get feedback from users: Your end-users (accountants, procurement officers, HR staff, admins) are the ones who will interact with the system the most, so their input is invaluable.
Get feedback from IT: IT professionals can weigh in on technical specifications, system connections, and security requirements.
Consult with legal: You don’t want to miss any compliance or legal requirements.
While an RFP isn't exactly a mythological sea monster, finishing it can make you feel like a hero. Now comes the exciting part—sending out the RFP! But how? Where do you send it? The answer is: as many channels as you want.
Your Website
Most public sector agencies have dedicated sections on their official websites for procurement opportunities where RFPs are posted. This is often the primary method of distribution.
Local Publications & Social Media
You can advertise RFPs in local newspapers, public notice boards, or social media platforms to comply with transparency and open government requirements.
Procurement Platforms
Some municipalities use procurement platforms, like BidNet Direct, PlanetBids, or DemandStar, to post RFPs and manage the submission process.
Email
You can send out an RFP via email. Utilize email lists for vendors to sign up to receive RFP notifications directly from your organization.
Associations
Sometimes, municipalities will post RFPs on regional or state government association websites that combine procurement opportunities for multiple local agencies.
Many municipalities open proposals publicly to keep things transparent. Keep in mind that legal requirements can vary, but you’ll generally need to follow local procurement laws, public records rules, and contract negotiation guidelines.
Once it’s in the hands of the vendors, you’ll receive proposals, which will be your next big task: evaluating and selecting the right ERP partner.
It's common (and probably a good idea) to have a little Q&A meeting to introduce the project and meet potential vendors who are considering RFP submission. If you have a company in mind, you can send a message to them directly. Otherwise, they might send you a request for a meeting.
Once proposals start coming in, the real work begins. You need to make sure the evaluation process is fair and follows the criteria in the RFP. Organizing responses in a standardized format makes comparison easier. Spreadsheets work well for tracking key details. Each proposal should be scored based on the predefined evaluation criteria to maintain objectivity.
Organize Responses—Create a standardized format for reviewing proposals. Spreadsheets work wonders here.
Score Proposals—Use the evaluation criteria to rank vendors objectively.
Conduct Vendor Interviews and Demos—Seeing the system in action and meeting who you'll work with is critical.
Check References—Ask past clients about their experience, especially in the public sector.
Negotiate & Finalize—Clarify any lingering questions, negotiate terms, and lock in the contract.
Once you’ve reviewed the proposals, you’ll notify the chosen vendor, and sometimes inform the other bidders as well. Just know that if a vendor feels the process wasn’t handled correctly, they may have the option to file a protest. That's why it's important to keep your ducks in a row.
Timing is everything. Creating the document, reviewing vendor responses, and going through approvals can take months—or even longer. You have to follow strict rules, too. Which means extra steps, meetings, and paperwork. Evaluating vendors isn’t quick either. You have to score proposals, check references, and sometimes sit through multiple demos. Once you choose a vendor, contract negotiations and implementation add even more time. So again, be specific and realistic about your timeline of choosing a vendor.
The RFP process takes time and money. RFPs also tend to include broad feature lists, pushing you toward bigger, more expensive systems. Vendors price their proposals carefully, knowing you have set budgets and prefer certain solutions. On top of that, implementation, training, and consulting fees add up. Since RFP contracts often last 5-10 years, you can end up paying more over time.
Some governments can spend less by skipping the RFP process altogether. They can negotiate pricing directly with vendors. They also tend to choose smaller, modular solutions instead of massive ERP systems that aren't always necessary. This gives them more flexibility and lowers costs. But, if life gives you lemons, you might as well follow a lemonade recipe.
A solid RFP makes the ERP selection process smoother, faster, and—dare we say—less painful. And writing the RFP might feel like a daunting task, but with the right approach, it’s all about breaking it down step by step. By understanding your needs, crafting a detailed and clear RFP, leveraging expert help, and staying organized, you’re well on your way to selecting an ERP system that will help solve your problems.
And remember, writing an RFP doesn’t have to be all work and no fun—throw in a little humor and personality, and your RFP will stand out for all the right reasons. Now, go ahead and get started—you’ve got this!
But if you're still feeling overwhelmed, we can help. Our team has extensive experience working with public sector agencies to define ERP needs and write RFPs. Let’s talk about how we can make this process easier—and get the best ERP solution for your organization.
Actually, can I just have a template? -> Click here for template