To answer your question, it depends on a few variables. First, if you have a sourcing or procurement policy, it should set the guidelines for when RFPs are necessary. Suppose you don't have such a policy. In that case, you should consider your objectives for pricing the product or service you currently get from the vendor.
RFPs are used when the organization wants to compare multiple vendors on price, capability, service, etc. Suppose you are looking for ways to reduce the price by comparing your existing vendor to other vendors in the marketplace. In that case, your incumbent vendor should be included in the RFP; knowing that they have competition may incentivize your current vendor into reducing their price.
If you are in the process of renewing your vendor's contract and don't plan to replace them, you should take the opportunity to negotiate the price, service terms, or other benefits.
These are best practices, but I am sure there are other ways to approach the situation. I would like to know how other members would handle it.
Original Message:
Sent: 08-23-2021 11:26 AM
From: Anonymous Member
Subject: Request for Proposals
This message was posted by a user wishing to remain anonymous
Good Morning,
Do any of you require RFP's for existing vendors?
Thanks!