The RFP lists in detail what is required and expected (called deliverables), listing the both the mandatories and the desirables. The vender must show in his proposal that he meets all of the mandatory requirements and list as many desireables as he can manage. The proposal also includes cost and delivery times of the deliverables. The idea is that the company or individual who meets all of the mandatories and can produce the deliverables is granted the contract, provided his is the lowest bid of all other proposals that meet the same requirements. In theory. That's the basic idea.
Writing both RFPs and Proposals is an art form practiced extensively in Ottawa. You might want your cousin Joe to land the contract to deliverer cement to one of PWGSC's building projects, but you can't list Joe as a mandatory--or even as a desireable. You have to word your RFP very carefully so that no one other than Joe is likely to be able to meet the requirements, while at the same time giving the appearance of a fair and unbiased request. The same for proposal writing. You might not be able to meet all the mandatories so you have to word your proposal to avoid promising to deliver something that you can't, while giving yourself an out. Typical for large projects is a clause that says the contract may be extended under the same terms. So, if you can't complete the inter-provincial bridge within the time frame of the RFP, you say you can, win the contract, complete as much of the work as can be done within your means then ask for an extension of the contract. After all, no one wants to be stuck with a half-completed bridge. That's the sort of thing that gets media attention and the last thing any senior public servant or political appointee wants is publicity, unless it is celebrating the project completion. You know, pictures of the department minister wearing a hardhat, shovel in hand, grinning with a .group of company presidents and vice-presidents, none of whom have ever lifted a shovel in their lives.
This practice is a natural setting for what is called low-balling. Companies deliberately propose the lowest price possible knowing full-well that they cannot meet the delivery requirements with that restriction. That's why I found the situation I did when I first went to Supply and Services Canada. DEC had proposed a solution and then could not meet the specifications of the RFP because they were counting on selling additional hardware and expensive performance management software--something they could not do for the original price. They were confident that once it became apparent that the system could not carry the load that SSC would be willing to renegotiate. After all, no one wants to be stuck with a half-completed bridge, right? (However, the fact that I could get the system to meet the specifications with a bit of basic knowledge put a roadblock in that plan, if that's what it was.) The same principle applied in the case I related about the translation department at Energy, Mines, and Resources: the proposed sized VAX could never support the 25 or so users it was meant to. I saw this principle being played out again and again in my career, sometimes involving hundreds of millions of dollars.
One such example I see almost daily. I do basic research for an editor of scientific articles. Basically, it involved looking up references to articles to ensure their accuracy. Sometime a book is referenced. For that, my first stop is Amicus, the online catalog of all publications held by the National Library. I was there when Amicus was created.
Prior to the early 1990's the library's catalog had been maintained on an IBM mainframe. Typical of IBM at the time, access to the catalog was difficult and too arcane for the average user. So, the National Library put out an RFP to replace the system with something a little more human-friendly. The contract was won by a consortium of companies (not unusual for large projects) overseen by a large computer consulting company based in Montreal. The proposal was to use VMS on VAXes as the platform. There were many good reasons for this at the time, among them was that VAXes could be linked together to act as one larger machine (a process called clustering) and so scaling, always an important consideration when looking at future growth, was simply a matter of adding more machines to the cluster.
I was brought in about six months into the project, primarily to prepare the operations procedures and to help National Library staff adjust to the new environment. I gave a few seminars on VMS and on programming in that environment and wrote up all the jobs the operators would need to maintain the system. Because I was the only one who could do it, I was given the task of translating all the data on the IBM tapes (in EBCDIC format) into the industry-standard ASCII. That was the sort of job I loved. I'd creep my way along an IBM tape, translating one record at a time, and whenever I came across something unusual I'd go ask the IBM specialist what on earth that was. The header (the part of the tape where information about the data on the tape is stored) was organized completely differently than any other operating system. He would answer with the IBM sneer, "That's that standard way of..." always stressing the word standard, even though the feature was unique to IBM systems. An aside, one thing that blew me away was that at the end of some records I'd find a string of characters like this: ˆD. I had recognized that as the ASCII translation of the EDCDIC end-of-record mark, but why would I find so many strung together? Didn't make sense. The IBMer condescended to tell me that because IBM tape drives were so fast they might miss a record shorter than 50 bytes; hence the extra end-of-record marks were used to pad short records. (That's what he said!)
In any case, the project was to be ready for release within a year, but, as the deadline approached the developers were nowhere near ready. Talk among themselves was that they needed another year. The night before the press conference at which the Minister was going to announce the competition of the project I was sitting with a programmer who had a routine that would simulate users; he could adjust it to imitate the activity of any number of users. I was adjusting operating system parameters so that the system could adjust as he bumped up the number of users. The project manager hovered, wringing his hands, watching us. One thing the system had to do was support up to 1,000 simultaneous users. We finally hit that marker after an hour or so of careful adjustments. The project manager was able to breath again.
There must have been a lot of talk and consultation overnight because the next day, instead of the planned announcement of the completion of the project, the Minister presented the outline of a contract extension in a style and manner that suggested that this had been the plan all along. It did take another year. However, no sooner was the project done than the National Library decided that they wanted to replace VMS with Unix. (Sigh! Another story...).
Every time I look up a publication on Amicus I am transported back to that project.