Chapter 24 - Requests for Proposals and Competitive Negotiations

24.3.2 Is an executive steering committee needed?

An executive steering committee may be created in support of any project as determined by the business owner; however, for major IT projects and large enterprise procurements, an executive steering committee may be required. The executive steering committee is usually comprised of business owners and executives who serve in an advisory role and may assist in developing business needs and requirements. The executive steering committee will not be involved in the evaluation process. This committee provides management oversight to the PPT while also validating the project's business objectives, funding, requirements and supplier selection.

If an executive steering committee is used to oversee the IT procurement, the committee will interact with the PPT & ET at several stages during the procurement process. Prior to issuing the RFP, the SPOC and/or others on the PPT will prepare and present the final RFP package, other required information and an executive summary to the executive steering committee. The SPOC and other PPT participants are responsible for ensuring and documenting that the executive steering committee reviews and approves the RFP prior to its formal posting and release.

The PPT and ET determine which negotiation issues are important to the executive steering committee and ensure they are included in the negotiation plan. The business owner should obtain preliminary funding approval before issuing an RFP for any project that does not have approved funding. This practice will send the message to the supplier community that the sourcing agency is serious about the project and is respectful of the supplier's time and money.