Unit 3: RFP and SLA
IT Consulting notes · PTU syllabus (MBA 945-18)
On this page
Unit summary
Clients buy IT services through proposals and govern them through service level agreements. This unit covers the scope, requirements and process of a request for proposal, proposal review and selection, and service level agreements — introduction, components, monitoring, verification and metrics.
After this unit you can
- Explain the scope and requirements of an RFP
- Explain the RFP process and proposal evaluation
- Explain the components of an SLA
- Monitor and verify SLAs using metrics
PTU syllabus topics
- Request For Proposal scope
- requirements and process
- proposal review and selection
- Service Level Agreements — introduction
- components
- monitoring
- verification and metrics
- 1
Write the RFP
Scope, requirements, criteria
- 2
Issue to vendors
- 3
Receive proposals
- 4
Evaluate and shortlist
- 5
Select the vendor
- 6
Sign the contract and SLA
Topic 1
Request for proposal: scope and requirements
- RFP: a document inviting vendors to propose solutions for a defined need; often preceded by an RFI (request for information) and sometimes an RFQ (request for quotation).
Introduction
Organisation background and objectives
Scope of work
Functional and technical requirements
Requirements
Performance, security, integration, compliance
Vendor qualifications
Experience, certifications, financial strength
Commercial terms
Pricing format, payment terms
Evaluation criteria and process
Timelines and submission instructions
Contract terms and SLAs
Topic 2
The RFP process
- 1
Identify need and form evaluation team
- 2
Prepare and issue RFP
- 3
Pre-bid meeting and clarifications
- 4
Receive proposals
- 5
Technical evaluation
- 6
Commercial evaluation
- 7
Shortlist, presentations and proof of concept
- 8
Negotiation and award
- 9
Contract signing
- Government procurement: GeM portal, General Financial Rules, quality-and-cost-based selection (QCBS).
Topic 3
Proposal review and selection
- Evaluation methods: weighted scoring of technical criteria, cost evaluation (least cost, QCBS — e.g., 70% technical, 30% financial), reference checks, demos and proofs of concept.
Combined score
Technical score × technical weight + financial score × financial weight
Financial score
Lowest bid ÷ bidder's price × 100
Example
Vendor A: technical 85, price ₹1.2 crore; vendor B: technical 75, price ₹1.0 crore (lowest). With 70:30 weights, A = 59.5 + 25 = 84.5; B = 52.5 + 30 = 82.5 — A wins.
Topic 4
Service level agreements: introduction and components
- SLA: a formal agreement defining the level of service a provider will deliver and how it will be measured.
Service description
What is covered and excluded
Service levels
Availability, response and resolution times, performance
Responsibilities
Provider and customer duties
Measurement and reporting
Metrics, tools, frequency
Escalation and problem management
Service credits and penalties
Review, change and termination clauses
- Types: customer-based, service-based, multi-level (corporate, customer, service).
Topic 5
SLA monitoring, verification and metrics
Availability
(Agreed service time − downtime) ÷ agreed service time × 100
Mean time to resolve
Total resolution time ÷ incidents
First-call resolution
Incidents resolved at first contact ÷ total incidents
Example
A 99.9% monthly availability target allows about 43 minutes of downtime in a 30-day month (0.1% of 43,200 minutes).
- Common metrics: uptime, response time, resolution time by priority, backlog, change success rate, customer satisfaction, security incident response.
- Verification: independent monitoring tools, audits, periodic service reviews, dashboards; service credits applied for breaches.
Key terms
- RFP
- Request for proposal inviting vendor solutions
- QCBS
- Quality-and-cost-based selection
- SLA
- Agreement defining service levels and measurement
- Service credit
- Penalty reducing fees for missed service levels
- Availability
- Percentage of time a service is operational
Quick revision
- RFI, RFP, RFQ; RFP contents.
- RFP process; GeM and QCBS.
- Weighted scoring; QCBS formula.
- SLA components and types.
- Availability, MTTR, first-call resolution; verification and credits.
Important exam questions
Practice questions written to the PTU exam pattern for this unit's syllabus: short answers (Section A style) and long answers (Sections B and C style).
Short-answer questions
- Q1.Distinguish RFI, RFP and RFQ.
- Q2.List five contents of an RFP.
- Q3.What is QCBS?
- Q4.Define an SLA.
- Q5.How is availability calculated?
- Q6.What is a service credit?
Long-answer questions
- Q1.Explain the scope, requirements and contents of an RFP.
- Q2.Describe the RFP process and the evaluation of proposals.
- Q3.Explain the components of a service level agreement.
- Q4.Discuss SLA monitoring, verification and metrics.
Stuck on this unit?
Message SBS on WhatsApp for help with IT Consulting, or to ask about studying MBA at Synetic.