RFPs: The Costs of Being Unclear

The nature of IT demands clarity, and that’s particularly important in requests for proposals.

Unfortunately, in today’s hurried world, few people take the time to make specifications clear. But fuzzy requirements create misunderstandings. They cost time, money, effort and sometimes political capital. Although it usually takes longer to make a document crystal-clear, the additional time and effort are good investments.

RFPs are expensive to produce and review, but clarity will save you money. Without it, you’ll find yourself going back to each bidder with new or different specifications — an expensive and time-consuming exercise. Moreover, RFPs that are unclear generally result in poorly defined service requirements and produce suboptimal results. They increase costs unnecessarily and contribute to disasters down the road. Save money by being clear the first time.

Case in point: In 1999, the Mars Climate Orbital Mission spacecraft was lost as a result of unclear specifications. NASA’s investigation of the mishap found that the root cause of the failure was that Mission Control’s software used English units of measure, while the spacecraft software used the metric system. Over the course of the nine-month mission, the spacecraft’s course had been periodically adjusted by thrusters. By the time the spacecraft reached Mars, it was approximately 170 kilometers closer to the surface than planned. Unfortunately, the difference wasn’t noticed until after the spacecraft was lost.

RFPs that are unclear typically cause one or more of the following problems:

Low bids. Unclear requirements may cause some bidders to submit low-priced minimal bids. These providers accept very low margins on the initial requirements but plan to make profits on the inevitable change orders.

Read more at ComputerWorld.