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RFP Software ROI Model — Methodology Pack

A printable, finance-ready methodology pack with the full model inputs, formulas, three-year projection, sensitivity logic, and source citations. Use this offline; rebuild in your own spreadsheet.

Companion article: RFP Software ROI Calculation: A CFO-Defensible Methodology for Mid-Size MICE Teams

1. Model overview

Three-year nominal NPV with sensitivity. Inputs configurable per team. Hard benefits only (hours × loaded rate, net of licence and implementation); soft benefits qualitative annex.

Horizon and discount rate

ParameterDefaultSource / rationale
Time horizon3 yearsLong enough to capture full benefit curve; short enough to remain defensible.
Discount rate10% nominalEuropean mid-market default 2025–2026. Use company WACC if published. NYU Stern (Damodaran) tables if challenged.
Working hours/year1,800Eurofound 2024 European average.
Loaded cost multiplier1.3–1.5×Standard finance convention. Confirm with HR.

2. Input table — fill these in

#InputDefault (8-planner team)Your value
I1Team size (planners)8____
I2RFPs per year180____
I3Planner fully-loaded cost (€/year)€78,000€ ____
I4Hours saved per RFP cycle6.0____
I5Annual licence cost (€)€9,600€ ____
I6One-time implementation (€)€4,000€ ____
I7Training hours per planner (Y1)16____
I8Change-management FTE allocation (Y1)10% × 3 months____
I9Opportunity cost of selection (hours)80–120____
I10Discount rate (%)10%____ %

3. Core formulas

Hourly loaded rate

HourlyRate = I3 / 1800

Gross annual saving

GrossSaving = I4 × I2 × HourlyRate

Year-1 net benefit

Y1Net = GrossSaving − I5 − I6 − (I7 × I1 × HourlyRate) − (I8 cost) − (I9 × HourlyRate)

Year-2 and Year-3 net benefit

Y2Net = GrossSaving − I5 Y3Net = GrossSaving − I5

NPV (3-year, discount rate r = I10)

NPV = Y1Net/(1+r)^1 + Y2Net/(1+r)^2 + Y3Net/(1+r)^3

Payback (months)

MonthlyNet = (GrossSaving − I5) / 12 Payback = (I5 + I6) / MonthlyNet

4. Worked example — 8 planners, 180 RFPs/year

LineYear 1Year 2Year 3
Hours saved (6 × 180)1,0801,0801,080
Hourly loaded rate€43.33€43.33€43.33
Gross saving€46,800€46,800€46,800
Licence(€9,600)(€9,600)(€9,600)
Implementation(€4,000)
Net benefit€33,200€37,200€37,200
Discounted at 10%€30,182€30,744€27,949
3-year NPV≈ €88,875
Payback≈ 4.4 months
What this excludes: BAFO savings, response-rate uplift, error reduction, planner-attrition reduction. Each requires sourced data and goes into a qualitative annex (Section 6) until you have baseline measurements.

5. Sensitivity analysis — ±25% method

For each input, hold the others constant; swing the focal input up 25% and down 25%; record the NPV change. Rank by magnitude. The top three variables are the ones to defend hardest.

VariableBaseLow (−25%)High (+25%)NPV swing (typical)
Hours saved/RFP (I4)6.04.57.5Largest
RFPs per year (I2)180135225Second-largest
Planner loaded cost (I3)€78,000€58,500€97,500Third
Licence (I5)€9,600€7,200€12,000Small
Implementation (I6)€4,000€3,000€5,000Smallest (Y1 only)
Lesson: a 25% increase in licence price barely moves the answer; a 25% drop in hours-saved breaks the model. Defend hours-saved with a time study, not a vendor claim.

6. Qualitative annex — soft benefits

Present these alongside the NPV, never blended in. Finance teams discount blended models heavily.

7. Source citations

8. Customisation guide

  1. Copy this table structure into Google Sheets or Excel.
  2. Replace I3 (loaded cost) with your HR-confirmed figure.
  3. Replace I5 (licence) with the vendor's quote — screenshot the pricing page for the audit trail.
  4. Replace I4 (hours saved) with the output of a five-RFP time study comparing current state to a vendor demo walkthrough.
  5. Lock the formula cells before sharing internally.
  6. Re-run quarterly with actuals. The model gets more defensible the longer it has been calibrated.

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