Navigating the Mobility Bid Process eBook

NAVIGATING

THE MOBILITY BID PROCESS

Relocation is not a commodity that can be purchased with a simple price comparison. It is a sophisticated and multi-faceted service designed to help companies recruit and retain talent while also managing a major milestone in an employee’s career. A well-conceived and executed relocation program will minimize the costs borne by the corporate client while providing an exceptional experience to their employees. We suggest companies evaluate the total costs of doing business with a relocation management company (RMC) and calculate the efficiency of the service delivery.

A bid process typically requires several stages starting with a Request for Information (RFI) then progressing to a Request for Proposal (RFP) and most likely an in-person presentation before culminating with a signed contract.

When done correctly, it allows companies to analyze services, culture and pricing among various relocation providers in a detailed format as they navigate the bid process. This guide has been created to assist prospective clients on this journey.

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STEP 1 IN YOUR JOURNEY Understand the Bid Types

There are several procurement tools that may be used to objectively evaluate prospective suppliers when purchasing goods and services. Each has a specific purpose. One, or all, may be used during the procurement process, depending on the size and scope of your mobility program.

Request for Information (RFI)

· Gathers initial information about the capabilities of potential suppliers · Usually brief · Narrows the supplier field · Rarely requests pricing · Preparation document for an RFP or RFQ

Request for Proposal (RFP)

· Questionnaire that invites suppliers to submit business proposals · Usually asks specific, detailed questions about the company and delivery of services · Allows comparisons between suppliers · Includes pricing document with the request

Request for Quotation (RFQ)

· Structured process to invite suppliers to bid on a specific good or service · Usually used when a company knows exactly what they need · Only needs to explore financial details · Used when price is the only factor

Best and Final Presentation (BAF)

Onsite Visit

· Select bidders are chosen to offer their best technical and financial proposal to the proposal committee · Held face-to-face, virtually or as a hybrid (depending on stakeholder location) · Can be held at client’s or supplier’s offices

· Office visit of a bidder to gain in-depth information about the supplier’s processes and culture

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STEP 2 IN YOUR JOURNEY Create a Project Plan

It is important to identify the project team before you start the bid process or draft the bid document. Going in unprepared can result in delays to your timeline and/or bids that do not meet your goals.

Form a Mobility Selection Team

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· Make sure all the company’s stakeholders are included ○ Senior Management ○ Human Resources ○ Information Technology ○ Procurement ○ Payroll ○ Legal · Identify each team member’s role and responsibilities · Do your homework ○ Distinguish between what your company wants and what it needs ○ Consider your relocation program’s history ○ Research current best practices and trends · Define the reason you are going out to bid: ○ To check market pricing ○ Due to quality issues with your current supplier ○ Is this just a bid cycle for procurement · Ensure all stakeholders express their vision for their new relocation service provider

Decide What the Winner will Look Like

· Create a scoring matrix · Weight each question in your questionnaire based upon key selection criteria · Determine which questions are most important to your company

Establish Realistic Project Timelines

· Calendar milestones and assign a projected timeline for each stage · Lay out the process from start to finish · Recognize that a well thought out plan can save you a lot of time and money · Determine who is responsible for each task · Understand that an effective process will usually have at a minimum, a six-month timeline from bid process to implementation

STEP 3 IN YOUR JOURNEY Creating the RFI/RFP

In order to prepare a comprehensive proposal that elicits the necessary responses the procurement team needs to evaluate potential partners, the RFI/RFP needs to include important data about the client’s mobility program as well as be organized in a manner that will provide the best format for vendor comparison. It is important to provide as much clarity and detail as possible to eliminate assumptions on the part of the supplier.

Provide a Description of Your Organization

List the Scope of Work

· Provide corporate information · Explain why are you going out to bid · Specify key characteristics you are looking for in the new provider · Describe why an RMC would want to partner with your company · Current relocation policies, include tiers or levels of benefits · Historical data about your program · Mobility program objectives · Services you are looking to outsource · Number of employees your company relocated each year for the past two years · Number of employees you forecast your company will relocate in the next year · Breakdown of mobility volume by: ○ Domestic and international ○ Homeowner and renter ○ Lump sum · Key locations for transfers and assignments · Average home value in your Home Sale and Home Purchase programs · Referral fee capture at origin and destination in Home Sale program 5

STEP 3 continued Organize the Questionnaire/ Formulate Appropriate Questions

· Include these key sections in your RFI/RFP questionnaires: ○ Company Information ○ Technology ○ Financials ○ Reporting ○ Account Management ○ Expense Management ○ Service Delivery ○ Supplier Management ○ Domestic Services ○ Implementation ○ International Services ○ Client References ○ Disaster Recovery ○ Pricing ○ Environmental, Social and ○ Security Questionnaire

Governance (ESG) · Formulate questions that address specific problems with current provider · Remove repetitive questions Inform Suppliers of the Award Criteria

Provide Bidding Timelines

· How/when will you notify who is chosen to the best and final presentation and/ or on-site visit · How/when will the eventual supplier be selected

· Set realistic deadlines · Factor in weekends, holidays, internal vacations or travel schedules · Remember the time it will take your team to meet, evaluate and score proposals · Inform bidders of: ○ How long the RFP evaluation process will take ○ When the bidders will be notified of their selection in moving forward ○ When you expect implementation to begin ○ Provide a contact for all supplier questions · Explain that no RFP team members should meet or speak to potential suppliers during the bidding process

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STEP 3 continued Decide Who Will Receive the RFP

· Remember that not all RMCs are created equal · Perform a pre-screen RFI to narrow RFP candidates · Research perspective candidates through industry resources (Trippel Survey, Worldwide ERC® Supplier Directory, etc.)

· Purpose is to compare RMCs · Recognize that relocation benefits are different than purchasing commodities Decide How to · Choose a format that will make it easy to collect responses and distribute to Send Out the RFP

project team · Format options for RFP to be sent and submitted include: ○ Online supplier portal (i.e., Ariba, Workday (Scout), Zycus, PowerAdvocate, etc.) > Be mindful of restrictions > Character limits/word count can limit appropriate responses > Ensure you have allowed for attachments where necessary ○ Email Submission > Microsoft Word > Microsoft Excel > Adobe.pdf

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STEP 4 IN YOUR JOURNEY Evaluation and Selection

Once you have gathered all prospective supplier information, an organized process is necessary to objectively compare bids. Using award criteria previously determined and weighted, bids may be scored and the highest rated bidder determined. Depending on the steps in your personalized project timeline, you may narrow the competitors to move to the presentation stage or you may choose to award the business.

Review and Score

· Score responses based on the predetermined scoring matrix · Gather all team members’ results · Perform a cost analysis · Schedule a BAF presentation and/or on-site visit and presentation with your top

Schedule Best and Final Presentations/ On-site Visits

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· · · · · · ·

2-3 choices Give presenters adequate time to make travel arrangements Meet the account team and ask in-depth questions Request supplier to address specifically what they can do for your company Ensure you get a feel for a supplier’s culture and the fit of your organizations Request to see technology demonstrations and sample reports Discuss implementation expectations Clarify any uncertain information from the RFP

Always Check References

· Conduct telephone interviews with the provided references of your top choices · Discuss all aspects of the supplier’s performance · Remember that no supplier is perfect all the time · Recognize that how a supplier addressed issues or challenges is key

Awarding the Contract

· Call the suppliers that were not awarded the contract ○ An explanation of why they were not awarded the business is helpful ○ Be honest in your evaluation and your feedback

Sample Bid Process Timeline

Without a realistic timeline in place, time and money will be lost during the process. It is critical that your team understand the time and steps required to create well-crafted responses that address your specific needs as well as the time necessary to ensure proper implementation of your specific mobility program. Developing an effective procurement/bid process will ensure that you have the appropriate information to choose and onboard your new mobility partner.

JUNE

JULY

AUGUST

SEPTEMBER

OCTOBER

NOVEMBER

DECEMBER

JANUARY

June 1

RFI Distributed to Selected Suppliers

June 12

RFI Submissions Due Evaluate RFI Responses. Select Potential

June 15 Suppliers to Receive RFP. Organize RFP July 3

August 10 August 14 August 31 September 4

and Supporting Documents.

September 7

July 6

RFP Distribution

September 14

July 9

Suppliers Confirm Intent to Bid

July 10

Supplier Clarification Questions Due

July 17

Clarification Question Responses Returned to Suppliers

July 24

RFP Responses Due By 5:00 pm COB

Best and Final Presentations for Top 3-5 Supplier Choices On-site Visits to Top 2-3 Supplier Choices Call References of Top Supplier Choice(s)

Notify Winning Supplier/Suppliers that Were Not Awarded the Contract September 21 - Contract Negotiation

October 21 October 1 December 31 January 1

Can be done concurrently with beginning implementation

Implementation Phase Initiations Begin

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Mistakes to Avoid Inadequate Planning

Planning is a critical element of the process. Neglecting to take the necessary time to properly map out the entire bid process from start to finish can cost your company time and resources and delay implementation of your mobility program.

Inaccurate Volume

Pricing in the relocation industry is based upon volume. Pricing models are typically based on a mix of service fees, referral fees and booking commissions. Accurate volume estimates will ensure you receive appropriate pricing in your responses. Additionally, providing a standard pricing matrix will ensure that all pricing received can be compared across the board.

Impractical Timelines

Setting a reasonable timeline can make the difference between receiving a thoughtful, customized proposal or a rushed response with standard, off-the-shelf answers. Allowing companies the time necessary to assemble a tailored response will allow RMCs to put their best offer forward for review.

Not Providing Policy Information to Bidders

Policy information allows vendors to prepare responses customized to meet your company’s individual needs. Vague information will generate vague responses that will make it difficult to properly evaluate if a supplier can meet your business needs.

Focusing on Price

Remember that relocation is a service business. The total value of the service cannot be broken down to fee alone. If you are focused only on price, you could be be hindering your ability to partner with the RMC that can provide you the best solution.

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Not Fully Understanding What Your Company Needs

Performing adequate due diligence is necessary to create a whole picture of how relocation touches various departments within your company. Each provider will have different strengths.

Have a clear picture of what an RMC needs to bring to your mobility program.

Creating and responding to RFPs is a major investment for both the client and the supplier so it is extremely important to allot enough time and resources to the process to ensure a successful outcome. Establishing a quality method to manage a cost effective and time sensitive bid process will help you chose the best partner that will provide the best experience for your company’s mobility program.

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