Why Your RFP Matters More Than You Think
Whether you’re managing a growing contingent workforce or looking to modernize how you engage vendors and talent, going out to bid for an MSP and/or VMS is a major step. But what you include, or fail to include, in your Request for Proposal (RFP) can drastically affect outcomes. Done right, your RFP becomes more than a procurement exercise. It becomes a strategic blueprint for aligning vendors, technology and services with your business objectives.
Signs It’s Time to Go Out to Bid
If any of these sound familiar, it may be time to issue an RFP:
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You’re stuck with a legacy provider who hasn’t evolved
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Your current MSP doesn’t understand your business needs
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You’ve outgrown your existing VMS or it lacks key integrations
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You’re expanding into new regions and need global capabilities
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You’re under pressure to reduce rogue spend and gain more visibility into your contingent workforce
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You want to separate technology from services
What to Include in an MSP and VMS RFP
Here are the essential elements your RFP should cover:
1. Company Overview and Workforce Goals
Let vendors understand your growth trajectory, workforce structure, key challenges and goals. Are you focused on cost savings, DEI initiatives, compliance or speed? The more transparent you are, the better the alignment.
2. Geographic Scope
List all regions where you’ll need MSP and/or VMS coverage: U.S., EMEA, APAC, LATAM and if international onboarding and compliance are expected.
3. Spend & Worker Volumes
Include contingent labor spend over the last 12–24 months, broken down by region, department or function if possible. Include worker types (1099s, corp-to-corps, interns, etc.).
4. Technology Requirements
If you need a VMS, clarify:
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Do you want a bundled VMS with the MSP?
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Or do you want to select your own VMS separately?
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Do you need integrations with Workday, SAP, Coupa, etc.?
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Are mobile workflows, AI or dashboards critical?
5. Service Expectations
Define what white-glove service means to you:
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Dedicated on-site/off-site teams?
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Compliance monitoring?
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DEI sourcing and reporting?
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Global payroll or EOR capabilities?
6. Vendor Management Strategy
Are you seeking vendor-neutral management or a master vendor model? Make it clear so your bidders can shape their approach accordingly.
7. KPI & SLA Expectations
Include expectations around:
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Time-to-fill
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Hiring manager satisfaction
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Compliance rates
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Diversity hiring
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Cost savings year-over-year
Pitfalls to Avoid
Even enterprise companies fall into these traps:
- Overly Generic RFPs – These attract templated responses and don’t help differentiate bidders.
- Combining Tech and Service Without Thinking It Through – You may end up stuck with a great VMS but a subpar MSP or vice versa.
- Not Asking for Implementation Plans – You need clarity on how vendors will transition your current environment with minimal disruption.
- Skipping Compliance Questions – Especially with changing IRS rules, DOL enforcement and local laws like AB5 in California, your vendor needs to be buttoned-up.
MSP + VMS: One Bid or Two?
There are pros and cons to combining your MSP and VMS RFP into a single bid.
Pros:
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Streamlined procurement process
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One point of accountability
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Potential cost savings in bundling
Cons:
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Less flexibility if you want to change tech later
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Fewer vendors capable of offering both best-in-class
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May limit vendor neutrality
Pro Tip: If you go the bundled route, ask bidders to outline the VMS separately including cost, features and limitations so you can evaluate it independently if needed.
What the Best Bidders Will Offer
Look for partners who:
✅ Offer varying vendor programs (vendor-neutral, master vendor, vendor on premise)
✅ Have VMS expertise even if not reselling one directly
✅ Provide full program implementation plans, including change management
✅ Include compliance services, not just pass-through support
✅ Can adapt to your tech stack and not force theirs onto you
✅ Offer total talent analytics, workforce planning and DEI metrics, not just timesheets and invoices
Real-World Best Practice
According to Everest Group research, organizations that clearly define their program goals in their RFP tend to report higher satisfaction with MSP/VMS outcomes, roughly 30‑35% more likely in some studies.
A Final Checklist Before You Issue the RFP
✅ Do you know what you want from a VMS (features, integrations, global functionality)?
✅ Are you committed to vendor neutrality or open to a master vendor?
✅ Have you outlined compliance risks, tax requirements and onboarding challenges?
✅ Are internal stakeholders aligned on the scoring rubric?
✅ Have you left enough time for Q&A and follow-ups?