STEP 4 - DEFINE THE REQUEST FOR PROPOSAL

Step 4 – Define the Request for Proposal (RFP)

Once the project requirements are defined the RFP can easily be created. There are critical questions related to security, vendor strategy, clientele, financial strength, and vendor history that need to be addressed. The RFP should be thorough and all encompassing but the responses should be limited to simple YES/NO or a short description. This will make the evaluation of the responses much easier and more consistent. The RFP will be sent to the selected “short list” of vendors with specific instructions on how to complete and return it.

STEP 7 - USE A SCORECARD TO EVALUATE YOUR RFP

Step- 7 Evaluate the RFP

When evaluating the responses it is wise to use a scoring system.  The scoring system will allow you to quickly determine which vendors to pursue further.  Below is an example of a scoring system:

Treasury Management System  SCORECARD
	VENDORS
PLATFORM	POINTS	A	B	C	D
ASP (internet based)	3
PC Based (hardware)	0
Secured Remote Access	3
Direct Connectivity with Banks	3
Elimination of Banking Software	3
Interface: Internal Sources
A/R (automated cash application)	3
A/P (reconciliation)	3
G/L (automated journal entries)	3
Interface: External Sources   (Market updates)
Investment Providers	3
Foreign Exchange Trading Platforms	3
File Format
EDI (Electronic Data Interchange)	2
BAI	2
PLATFORM SCORE:	34
INFORMATION REPORTING	POINTS	A	B	C	D
Transactional Reporting	3
Consolidated	3
Real Time Feed	3
Balance Reporting	3
Forecasting	2
Cash Reporting	3
Fraud Detection	1
Variance Analyses (forecast to actual)	1
Bank Fee Management & Analysis	3
Market Updates (real-time data feed)	1
Historical Data Retention
< 1 year	0
>1 year < 5 years	1
> 5 years < 10 years	2
Unlimited	3
REPORTING SCORE:	29
OPERATIONAL	POINTS	A	B	C	D
Foreign Exchange	3
Investment Activity	2
Intercompany Management	1
Positive Pay	3
Payment Transactions
ACH	3
WIRES	3
CHECKS	2
OPERATIONAL SCORE:	17
ADMINISTRATIVE	POINTS	A	B	C	D
Bank Account Openings	1
Documentation Archive	1
FAS 133 Compliant	2
Customer Service (24 Hours)	2
ADMINISTRATIVE SCORE:	6
SECURITY	POINTS	A	B	C	D
SAS 70	3
Secure Hosting Center	3
Data Encryption	3
SOX Compliant	3
Disaster Recover Policy	3
SECURITY SCORE:	15
OTHER	POINTS	A	B	C	D
Net Capital Models	1
Consultancy Provided	2
Bank Relationship/Knowledge	2
Service Level Agreements	3
Allow Reference Checks	2
OTHER SCORE:	10
PRICING	POINTS	A	B	C	D
Free Trial	3
System Maintenance Fee	-3
Monthly Account Maintenance Fee	0
Per User Fee	1
Flat Fee	1
Licensing Fee	-3
Contractual (< 3 years)	3
PRICING SCORE:	2
TOTAL SCORE:
	100