Outsourcing IT Project Vendor Financial Information - RFP Checklist

Download Free Outsourcing IT Project Vendor Financial Information - Request for Proposal Checklist

1 Base Fees.
1.1 Specify vendor’s overall base fees, presented as fixed annual payments over the term.
1.2 At a minimum, the vendor’s base charges should include information technology services that Customer provides for itself through its own personnel as of the date of the outsourcing agreement, as such services may evolve during the term.
1.3 [The base fees should include a compounded annual growth rate of [NUMBER] percent.]
1.4 [The vendor must reconcile its final pricing structure to Customer’s [***] budget, which is attached as Appendix [NUMBER].]
1.5 All cost areas, including vendor responsible, pass-through, and Customer-retained cost areas, should be detailed by subarea (e.g., data center, AS/400s) over each of the years of the term.
1.6 Provide your base fees, broken down into separate pricing for each of the following subareas for each of the years of the term:
- Data center
- AS/400s
- Desktop systems
- Voice and data network
- Help desk
- Projects

2 Incremental Usage.
Describe how increased/reduced usage will be handled. Provide unit rates that will be charged for any additional resources used and that will be credited for any resources not used by Customer (including hourly, daily, weekly, monthly rates). Rates will be the same for increased and reduced usage.

3 Baseline Adjustments.
Customer wishes to have the flexibility to adjust the resource baselines upon notice to the vendor, with an appropriate adjustment to the fees. Describe the mechanism pursuant to which baselines will be adjusted.

4 Inflation.
There will not be any adjustments of the charges due to inflation or cost of living during the term.

5 New Services.
5.1 Provide a detailed description of the approach, method, and treatment of the new services. These descriptions should be illustrated with examples whenever possible.
5.2 Customer reserves the right to solicit, negotiate, and award those capital and discretionary projects and services, which are outside the scope of this RFP, to a third-party vendor at its sole discretion.

6 Savings.
Customer must achieve a [NUMBER] percent or more reduction in information technology expenses during the first year of the outsourcing agreement and [NUMBER] percent or more during each subsequent year during the term. Describe how the vendor will meet these requirements. In addition, identify how you will provide continuous cost savings to Customer.

7 Technology Indexing.
Each calendar year during the term of the outsourcing agreement, the vendor will review
(1) the actual information technology price/performance benchmarks during the calendar year as determined by a third party agreed upon by Customer and the vendor and
(2) how the vendor's price/performance benchmarks during such calendar year compare with the actual improvements. If the actual improvements are greater than those improvements anticipated by the vendor, the vendor will issue to Customer a credit against fees for the following calendar year by multiplying the fees by the percentage difference between the actual and anticipated improvements. The vendor will be responsible for paying the fees and expenses of any third party in connection with providing the services described in (1) above.

8 Taxes.
[***] will be responsible for all worldwide taxes (other than for taxes based on Customer's net income) levied on payments made by Customer to the vendor or services provided by the vendor.

9 Foreign Currency.
[All payments will be in currencies designated by Customer.]

10 Invoicing.
10.1 [DESCRIBE REQUIRED INVOICE DETAIL]
10.2 Customer will pay vendor fees within [NUMBER] days of the end of the month following the month during which services were provided.

11 Most-favored customer.
The vendor will provide Customer with its most-favored-customer status and benefits to Customer.

12 Services for Newly Acquired Customer Enterprise or Additional Customer Work.
Customer reserves the right to add or remove business units to or from the scope of the outsourcing agreement.

13 Treatment of Disputed Amounts.
Describe the procedure used to settle disputed payments or credit amounts, including the period of time to settle disputes, the process of verifying these disputed items, and the process of resolving disputes that cannot be resolved during the normal procedures specified above. The parties will be required to continue to perform under the outsourcing agreement in the event of a good faith dispute.

14 Expenses.
All vendor expenses should be included in the base fee.