How to Evaluate a Vendor

How does the vendor communicate?

Does the vendor use language you can understand? Is the vendor addressing your needs or stuck on sales mode?  Is the vendor honest and forthcoming about their strengths and weaknesses? Are the vendor's promises documented in writing? Weak communication skills often indicate weak project management and unmet client expectations, which can turn even the most technically qualified vendor into a poor choice for the project.

Does the vendor understand nonprofit needs?

Consultants who work with business clients will often not understand the dual bottom line of nonprofits, mission and cost.  They often recommend expensive solutions built with functionality tailored to for-profits that generate revenue through fee for product or service arrangements.  Find out if the vendor has experience working with nonprofits, ask for some examples of nonprofits who have use their tools, find out if they share your values or if their values are in opposition to your mission. 

What is the technical expertise of the vendor?

Does the vendor have experience in the technical tools required for your project? Are the vendor's skills and service offerings broad enough and adaptable to changing requirements and upgrades in the future?  Do they have examples to show you of products that satisfy your needs?  How long have they been in business, how many employees do they have, do they rely on subcontractors for their technical work and if so, for what technologies? Often it is helpful to involve a trusted and independent technical expert to review the merits of the vendor's technical claims.

What is the quality of their work?

Do they have nonprofit clients that will confirm the product works well for their needs? Do they have clients that have used the system for a long time (over a year) or only recent clients .  Are the long term clients still happy with the vendor's services and product?  The mark of a good large-scale technology project is that it is still serving the needs of the organization a year or more down the road. Too often vendors will provide their latest and most exciting clients, who cannot offer as much insight on the durability of the products and services offered.

Under what model do they provide products and services?

Are they an Application Service Provider (one solution built the same for all clients), a custom developer (product will be built to your exact specifications) or a combination? Do they allow their customers rights to customize their systems, and to what degree? Who owns the deliverables? Do any of the vendor's deliverables require purchasing licenses, how much do these cost and what benefits and restrictions come with each? 

Does the vendor's solution match with your needs?

Can the vendor demonstrate how their product matches each of your needs?  Is the vendor focused on their product, or your solution - this is especially important to access with vendors who promote one solution with non-customizable features. Does the vendor provide an appropriate level of service, support and availability? Are the products and services provided scaled appropriate for your level of need, or are they too feature rich or feature poor?

Does the Vendor involve you in the Development Process?

Is the vendor able to describe the development process? Are their points in this process that involves the input of the organization? Is there a process for regular communications/meetings regarding progress? Is there a policy and process for evaluating client input and project scope changes? A sound development process will involve the direct participation of the organization project team at several points, from the specifications of the project on paper through the design, development and implementation.

Database Planning Service Vendor Selection FAQ

The Service

To provide clients with a set of resources and easy-to-follow methodology for selecting database tools or vendor services.  Vendor selection is the process of determining the best tool(s) to most closely meet an agency’s information management requirements

The Need

There are two core needs:

  1. Nearly all Database planning clients begin and end the planning process with a series of questions related to database design budgets and timelines, software packages, consultants, rates and other issues related to system implementation. 
  2. Vendor selection is a resource that serves as the bridge between planning and implementation.  It is the first step for toward developing a database implementation practice, as it provides a methodology for successfully managing database implementation projects.

Who is the Vendor Selection service designed to help?

The service is appropriate for small and medium-sized nonprofits with budgets under $5 million.  Vendor selection starts after the agency has completed an information management needs assessment and developed a database plan.  Agencies without a database plan would not be appropriate for this service, and would be referred to another program and our online resources. Vendor selection uses the database plan to evaluate the suitability of available database products and services as well as related technology tools.

What is the Vendor Selection process?

The process consists of five major steps:

  1. Technology Requirements:  Pull from the database plan the major technology required to meet the needs
  2. Buy vs. Outsourcing vs. Build:  Review the benefits and drawbacks to buying, outsourcing or custom building databases.   Does pre-built software exist that satisfies your core requirements?  What are similar organizations using?
  3. Vendor Research and Criteria: Research vendors, their products and services, and independent evaluations available.  Develop a short list of vendors and/or a request for proposals based on the database plan and the “buy, outsource, build� discussion.
  4. Vendor Evaluation:  Interview consultants, demo products, evaluate references
  5. Implementation Plan:  Determine milestones and testing periods for developing and installing the system.  Integrate data clean-up and migration needs for existing data

What Specific services and deliverables would we offer to Vendor Selection clients?

Scope the process together with the agency database planning committee to meet their particular needs.  Typically the process involves one meeting with the database planning committee to cover steps one and two, and several phone and email consultations to help evaluate vendor services, product options and implementation plan.  The service can be adjusted to offer additional services, such as comparative research of products, services, and participating in vendor interviews and selection.

What roles do agency staff play in the Vendor Selection process?

Vendor Selection services empower agencies to make informed decisions through a collaborative relationship.  Work with agency staff to divide up the roles and responsibilities between us and the agency during the vendor selection process, ensuring that staff are responsible at every step.  Agency database planning staff are responsible for attending all meetings, developing criteria and requests for proposals, evaluating vendors and products, and negotiating an implementation plan and product.

How much time will the process take?

Typical vendor selection processes would require from one to three months, depending on the scope determined at the beginning of the process

What is the cost of the service?

Typical CM hours per project would range from 12 – 40 hours.  Based on a $40 and $65 per hour rate, the range from $480 to $2600, depending on the roles and responsibilities division and the scale of the database development described in the project scope.

How will clients as a whole benefit?

There are three positive outcomes to developing this program

  1. develop a new potential income stream
  2. provide clients a new service option
  3. create new written resources for wide distribution within database & technology plans and on TechSoup

What time is required to develop Vendor Selection materials?

There are three core steps:

Task

Details

Time

Program Methodology

Meet with consultants to determine what we are missing and should change, redraft

8 hours

Vendor Selection Info

Fill out the methodology with detailed info on selecting vendors

24 hours

Marketing/Promotion

Work with communications & TechSoup to get program descriptions and materials online

2 hours

ÂÂÂ