Hiring an AMC: What Your RFP Should Include

A good Request for Proposal (RFP) lets your board compare firms on the same terms and raises the questions most boards forget to ask until after they sign. In this post, we break down the ten sections that are essential to include in your next RFP. We’ve even included a free sample at the end of this blog that you can download and edit.

Essential points to include in your RFP

1. Purpose. What you are hiring for and when service should start. Say whether you are open to a hybrid model that keeps your own executive- we like to call this the Bring Your Own Executive (BYOE) Model.

2. Timeline. Every date from issue to contract start, including a deadline for written questions.

3. About the association. Members, budget actuals, fiscal year, events, systems and strategic priorities. Firms price better when they know what they are pricing.

4. Scope of services. Each function of the organization marked Required, Optional or Not needed, with volume and capacity where you can give it.

5. Ownership. Who owns the firm, any acquisitions in the past three years, and whether a sale is planned.

6. Proposed team. Named people in essential roles and leadership, the share of their time on your account, and how a replacement would be chosen.

7. Financial controls and data. Accounts in the association's name, signing authority, insurance, and written confirmation that your data and accounts belong to you.

8. Client history. Current references, one former client, and how many clients left in the past three years.

9. Fees. A pricing form by year, the annual increase strategy, and every cost billed outside the base fee.

10. Contract terms. Term, termination without cause, assignment and change of control, key personnel, staff non-solicitation and transition assistance.

Mistakes that cost boards later

• Asking only about price. The lowest fee often excludes services you assumed were included. A pricing form by line item prevents that.

• Not asking about ownership and client history. These two answers tell you more about stability than any sales presentation.

• Reviewing the contract after selection. Ask for each firm's standard agreement with the proposal. Your leverage is highest before you choose.

• No scoring weights. Agree on weights before proposals arrive so the decision is about your criteria, not the best presenter.

Use this sample RFP

This sample covers all ten sections, a scope table, evaluation weights and a pricing form. Replace the bracketed items, delete what does not apply and have your attorney review the contract section before you issue it.

Still have more questions?

• How many firms should receive our RFP? Enough to compare real options. If you’re broadcasting through a wide distribution channel, be sure to have a plan to evaluate and create a short list of three to six firms that you plan on interviewing.

• How long should firms have to respond? Allow at least three to four weeks. Complex scopes need more.

• Should we tell respondents our budget? Sharing a range helps firms propose a realistic scope. Many boards share actual operating revenue and leave the fee open.

• We see challenges ahead for our organization, what should we do? Be transparent about any challenges or headwinds you anticipate facing. Ask the firms to clearly articulate how they can help. This will help in your evaluation process.
  
  

Questions about the RFP Sample? Email Matt Ott at matt@MomentumAMC.com.