LMS RFP Template and Guide To Help Choose the Right Software

Developing your employees is a central factor in making your company more successful. To do so, it’s critical that you find the right LMS software for the job. And sending an LMS RFP can help ensure your organization ends up with the best product.

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The problem is, the market is booming, there are a lot of vendors to choose from and they all look pretty similar on the surface. Picking a learning management system from the forest of vendors is like shooting an arrow into the bullseye while blindfolded. It takes Robin-Hood-level skills.

Fortunately, like Robin Hood, you’re not alone. Creating a learning management system RFP is an excellent way to hone in on your target.

We’ve put together a free template and step-by-step guide to help you do just that. Let’s get this arrow nocked and zipping toward your LMS bullseye!

• What’s an RFP?
• Benefits of an LMS RFP
• Research the Market Before Sending
• How To Create an RFP in 5 Steps
• The Final Stage: Post-Evaluation and Selection
• Special Considerations
• Next Steps

What’s an RFP?

The Request for Proposal

An RFP is a formal document that provides key information about your company and includes a section where vendors can put their responses.

Because it uses the same selection criteria for all recipients, an RFP helps you compare vendors on a level playing field. This ensures a consistent method so you don’t have to rely on an ad hoc, piecemeal approach.

An LMS RFP is sent to vendors by companies that are planning to build an online training program for their employees. To create an effective RFP, you need to be specific and detailed. The more you detail your business requirements, the better. It helps vendors understand whether they’ll be able to meet your demands so they can respond accordingly.

So, what are the key components of an LMS RFP?

Use this list as a starting point for what information to include in your learning management system RFP:

About Yourself and the Project

• General information about your company, like name, address, website and industry.
• Common challenges you’re facing, and the learning goals you wish to achieve.
• An executive project summary briefly explaining your training model.
• Details about your learners, training metrics and delivery method, like the type of content desired, the number of users and preferred mode of deployment.
• The level of support and training your company requires.
• A breakdown of your budget.

You may need to include other details depending on your situation, so be sure to tailor everything based on your unique needs.

About the Software

• List of must-have functional requirements (more on this in a minute).
• Desired technical capabilities, like integration with third-party apps and external services you want to use with the platform.
• Details about the data you need to migrate (if you have an existing system).
• Criteria for assigning user roles and permissions among different job functions, like administrators, instructors and learners.
• Details about the software’s security infrastructure.
• Crucial training KPIs you wish to measure using the software.

About the Vendor

After you’ve provided all the information relevant to what you expect from the LMS, it’s time to get acquainted with the vendors. Include a section in your RFP asking vendors for key information, like industry experience, customer base, technical services and compliance policies, to help you evaluate your options in detail.

• A summary describing key points of the proposal.
• A section for vendors to talk about their experience and expertise.
• A rough price estimate for the software.
• Performance expectations and targets for the vendor.
• Business history and financials from recent years.
• Key differentiators that set them apart from other vendors.
• Contact information like phone numbers and email addresses.
• Number of current customers with their industries and years of partnership.
• Awards and recognitions, along with details about the presenter.
• Data security policy and documentation practices.
• Post-implementation and onboarding support.

About the Proposal

• The criteria you’ll use to make selections (non-negotiable, because vendors need to know the rules of the game).
• A proposal schedule with information about submission start and end dates, and the expected timeline for evaluation and implementation.
• Contact information of stakeholders in the RFP committee like unit leaders, supervisors and IT staff.
• The proposal deadline (give vendors at least two to four weeks to put together a proposal).

The process is more involved than jotting some notes on Evernote or a whiteboard and then throwing them into a document. It involves identifying your requirements, putting together the actual document, sending the RFP, evaluating responses and following up with vendors. We’ll cover each of those steps below.

However, the RFP isn’t the only tool at your disposal. If you picture your selection process like a chain, connecting where you are currently with where you want to be after implementation, the RFP is the middle link.

The purpose of the RFP isn’t to gather general info. It’s to target a small, well-vetted group of vendors. To get there, you have to start by doing a bit of legwork.

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Benefits of an LMS RFP

Remote and hybrid work has become very popular in the past few years. As a result, there is a growing demand for LMS software among big and small organizations alike. Besides, more L&D leaders are focusing on upskilling and reskilling their workforce to bridge the skills gap, and LMSs provide an all-in-one platform to help employees hone career-relevant competencies in a continuous learning environment.

A comprehensive and needs-oriented RFP paves the way to finding the right LMS for your organization. It gives vendors a clear understanding of how you want the software to serve your unique requirements, be it for developing new skills or growing existing ones.

Here are some of the potential benefits of an LMS RFP:

• Provides a formal process for conducting all software selection-related activities.
• Helps obtain competitive pricing from various LMS vendors so you can compare quotes and identify cost-effective solutions that align with your budget.
• Facilitates prompt exchange of time-sensitive information like submission deadlines, RFP start and closing dates, and internal communications on the micro level.
• Facilitates a thorough assessment of each vendor’s reputation, customer references and financial stability so you can choose a reliable and reputable service provider.
• Provides a centralized information-sharing platform to all stakeholders from both sides.
• Offers flexibility to ask questions and discuss proposals with vendors before selection so you can ensure a favorable recruitment process and make an informed decision.
• Allows you to request information regarding data security measures, access controls, encryption protocols and compliance with relevant regulations like GDPR and HIPAA, ensuring that the selected LMS aligns with the industry security and compliance policies.

Research the Market Before Sending

You’ve identified your need to invest in a new LMS or to upgrade from your current solution. Before jumping into the RFP process, you need to do a recon of LMS software vendors.

When it comes to sending RFPs, the best practice is to aim narrow. That means you have to first figure out which vendors to target. There are a few ways to go about this.

You can conduct your own initial research, which is never a bad idea. This can take many forms, including reading through blog posts and industry forums, taking recommendations from peers and colleagues, and attending industry conferences and trade shows. Posts that compare two products, such as Litmos vs Docebo and Canvas vs Blackboard, are especially helpful. As you begin building a picture of the landscape, start a list of vendors to potentially contact.

You can also get in touch with an LMS consultant who has a deeper understanding of the top players in your industry and how they can fulfill your business needs.

Once you have a list of potential vendors, evaluate their credibility and reputation. Visit their websites, review case studies and customer testimonials, and check their experience in the eLearning industry. Look for vendors that have a proven track record of successful LMS implementations and positive customer feedback.

Our LMS comparison report is a quick, easy way to view key information on all the top vendors. It lets you get up to speed without spending hours wading through search terms and vendor websites.

Besides digging up your own intel, you can always go directly to vendors to find the information you need (helpful if you’ve done some preliminary searching and have a list in mind). That’s where the request for information is handy.

The Request for Information

Companies often opt to send an RFI to kick off their software search in earnest. Every situation is different, so you’ll want to weigh whether this approach works for you, but it’s a good option to consider.

If you’re not very familiar with the LMS sector, sending an LMS RFI is an excellent way to gain the information you need from a number of vendors. Even if you’ve had a learning management solution for years, it still might be wise to send an RFI to vendors to get a pulse on the current industry. Things change quickly in the software world, and information from even a year ago can be outdated.

Imagine this stage like looking for the perfect wedding venue. You have an idea of your goals and pain points, but the purpose here is to investigate as many options as you think might work. From there, you can whittle the list down until you have a handful of vendors left to target with an RFP.

Since you’re not doing a deep dive, avoid going overboard with information. We recommend including at least the following details in your LMS RFI:

• Some background info about your company
• Why you’re seeking an LMS and the goals you need to achieve with the software
• The challenges you need the LMS to address
• Functional and technical requirements
• Training and support requirements
• Any industry-specific compliance standards the LMS should meet
• A deadline for sending a response

Don’t skimp on the research phase. The success of your RFP will largely depend on taking the time to first build a list of vendors that may be a good fit. If you do a sloppy job of researching, you could well end up with a shortlist of vendors that can’t meet your requirements.

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Creating an RFP in 5 Steps

With your initial research pass complete and a handful of vendors chosen, it’s time to create your RFP. It may be tempting to Google “LMS RFP template,” find a decent one to download and be on your merry way. But that’s putting the train before the engine.

Selecting software is hard enough without setting your process up for failure along the way. We want to help you avoid making those costly mistakes. To get the best results, we recommend following this five-step process for putting together your LMS request for proposal.

Step 1: Define Goals and Objectives

Before sending the RFP, you need to clearly define your business goals and objectives. These will guide how you implement and use the LMS to drive better L&D outcomes and contribute to your organization’s overall success.

Start by getting a deep understanding of your organization’s core purpose and values. This may involve reviewing mission statements and strategic plans or consulting with key stakeholders like employees, managers and IT staff.

Next, determine the specific L&D priorities that the LMS should address. Consider factors such as skill gaps, compliance training requirements, onboarding and employee development needs or performance improvement goals.

Based on your analysis, set specific and measurable goals. This could include increasing employee engagement in learning activities, reducing compliance training completion time, or improving skill proficiency across the organization. Break down each goal into specific objectives that outline what needs to be achieved to reach the goal.

Objectives should be actionable, measurable, and time-bound. For instance, if the goal is to increase employee engagement, an objective could be to achieve a 20% increase in course completion rates within six months.

Seek inputs from key stakeholders, such as senior management, HR professionals, department heads, and L&D teams in the goal-setting process. Collaboration with stakeholders will foster a shared understanding and commitment to business goals.

Step 2: Determine Requirements

Once you have a clear understanding of your business goals and objectives, it’s essential to prepare a list of your LMS requirements, or must-have features. That makes this step critical in launching you on a trajectory toward success.

Here are a few keys to follow that will help you focus on the requirements that will make a difference in your end result:

• Give everyone involved a voice. Don’t stop your requirements gathering at the C-Suite and HR managers. Ask IT how the LMS will impact your technical architecture and processes. Also get input from the end-users — their insights will be critical.
• Research industry standards and best practices. Familiarize yourself with popular trends and features specific to your industry so you can include them while preparing the RFP.
• Focus on the essential features. It’s easy to assume every feature is important. But that doesn’t mean every feature is paramount. Having all the flashy tools won’t help if you have a global workforce but can’t offer learning modules in multiple languages.
• Explain scenarios for features. It’ll be helpful for vendors to know which purposes you want each feature to serve, so go into detail about specific requirements to attract vendors that are relevant to your use case. For example, you can develop a learning path for users, and give vendors space to explain how their product accomplishes that task.
• List out your challenges. Is the current system too narrow in scope? Do you need a mobile option? Is your company lacking any sort of formal training process and looking to put a solution in place? Knowing your challenges will direct you toward your essential features.
• Look to the future. Implementing new software takes time and is expensive. Save your company the trouble of doing it multiple times by planning ahead for what you’ll need down the road. If part of your roadmap is to sell your training materials, for example, you’ll want an LMS that includes eCommerce capabilities or has the option to add that feature when you need it.

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Here are some feature-specific questions you can ask the vendors:

Course and Content Management

• Do you offer built-in authoring tools?
• Can I upload courses to the platform from third-party sources?
• How can I track course performance?
• How can I customize courses?
• Do you provide an online content repository?

Reporting

• Which types of reporting formats does the software support?
• How can I share reports with other users?
• Can I generate employee performance reports?
• Can I automate report delivery based on a fixed schedule?
• Is it possible to generate visual reports?

Collaboration

• Which collaborative tools do you offer?
• Does the software have a built-in video conferencing tool?
• Does it work with popular video conferencing applications? (Zoom, Google Meet, Teams)
• Can I schedule real-time notifications?
• Does the system offer private and public messaging channels?

Assessments

• Which types of assessment formats does the software support?
• Can I add tests and assignments to courses?
• Does the system come with game-based elements?
• Can I add feedback forms at the end of assessments?
• Can I automatically share progress reports with learners?

Third-Party Integrations

• Which third-party integrations does the software support?
• How does it handle updates and upgrades to an integrated system?
• Does the software support single sign-on (SSO) or identity management integrations?
• What level of technical expertise is required to set up and maintain integrations?
• Does the platform support custom integrations with proprietary or less common applications?

As you look at the LMS market, you’ll find a lot of vendors offering solutions that solve many of the same problems. That’s why it’s important to get specific based on your challenges, needs and goals. Only then will you be in a position to find out how vendors can solve your particular pain points.

Step 3: Create Your RFP

No brainer, right? After all, it can’t be that hard to put together an RFP. While that’s true to some extent, you still need to give this step your full attention. Otherwise, you risk sending out an unprofessional, confusing RFP.

Your goal should be to make it clear how you want vendors to respond to your request. If vendors can’t figure out what you want or how best to respond to your requirements, chances are you’ll end up sorting through messy proposals that don’t explain the specific ways a vendor can meet your needs.

Best practices for an LMS RFP include giving vendors a structure to follow that doesn’t leave room for questions on what information you want and how it should be formatted. It should:

• Give you and the vendors ample time to complete the vetting process without any communication barriers.
• Furnish all the details with respect to your business requirements, goals and objectives.
• Provide vendors with a clear understanding of your budget, implementation timelines and evaluation criteria.

But before you draw up your format rules, think about how they’ll affect vendor responses. Example: if you give them a spreadsheet, it’s best to frame everything to accommodate Yes/No responses. Expecting lengthy explanations with that layout isn’t reasonable.

Using an online platform is a smart way to manage this step. It will help you avoid errors and provide you with a pre-built framework for sending clean, organized, professional RFPs.

That’s why we built the SelectHub platform. The workflow simplifies the process of selecting your requirements, and you can create and send professional RFPs using best practices. It also drastically speeds up the process, cutting the time it takes for a start-to-finish RFP by as much as 50%.

Step 4: Identify Vendors and Send Your RFP

If you did your research ahead of time, this step will be straightforward. If not, now’s the time to develop a vendor shortlist.

Creating and sending RFPs is no small task — it takes time and commitment. The research phase is where you go broad. By this point, your focus should be specific and narrow.

Your shortlist should be just that — short. Only include the vendors who look promising. Select no more than five candidates to send your RFP to, and if only two vendors look like they’re worth pursuing, don’t send out extra RFPs simply because you can.

Step 5: Evaluate Responses

You did it! Your LMS RFP is out in the world. But that doesn’t mean your job is done.

You still need to vet the responses. That process in and of itself can take a long time. It’s where your evaluation team closely examines each vendor proposal to determine whether the product is what you’ll need. Like choosing the perfect wedding venue, a lot rides on this decision.

You have two options when it comes to the evaluation phase. Either wait until you’ve received all responses — which could take several weeks — or start working through each proposal as it comes in.

The latter is a better choice. It will speed up the process and make the potential back-and-forth with vendors go more smoothly.

This is where you’ll want to give vendors the chance to ask questions and get any clarifications you need based on that conversation. Working through those questions as they arise will streamline the entire process and prevent it from bogging down.

Here are some tips for conducting an effective evaluation:

• Evaluate the vendor’s implementation methodology, deployment timeline and project management capabilities. Assess their training and support offerings, including availability, response time, escalation procedures and ongoing customer support services.
• Consider their experience in the market, track record of successful implementations and reputation in the industry.
• Consider their history of releasing updates, new features and the ability to adapt to emerging trends and technologies.
• Review the vendor’s terms of contract, licensing agreements, service level agreements (SLAs) and data privacy policies. Take into account factors such as ownership of data, data portability, termination clauses and any legal or compliance-related considerations.

A management platform such as our RequirementsHub will make this step a lot easier to manage. It provides a central place to track responses and follow up with vendors, rather than fighting through a crowded email inbox to find what you’re looking for.

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The Final Stage: Post-Evaluation and Selection

After completing your evaluation, you may have a clear-cut winner. More likely, however, you still need to do some extra investigation. Here are several good ways to learn more about each solution:

• Attend a demo: A live demonstration is an excellent way for vendors to show off what the software can do. And it gives you a chance to look at the interface as well as see the navigation.
• Check references: It’s never a good idea to base your selection decision solely on what a vendor says. References provide firsthand information that you can’t always get by asking questions and listing requirements.
• Ask for sandbox access: A sandbox is an environment meant to simulate how your fully implemented system will look and function — aka a real-world test drive. It won’t have every feature available, but it’s a chance for admins and users to play around inside the platform, looking for areas of concern and getting familiar with the user experience.
• View a proof of concept presentation: This is similar to a demo but typically limited to showing how the system can address a specific task rather than a range of functions. However, some vendors may offer it as a step up from a sandbox, so keep that in mind.
• Free trial: This won’t have the extent of features as a sandbox, but it will give you an idea of how the LMS will fit into your operations.

Not every vendor will offer every opportunity mentioned above, and some of them may not be free. So be sure to check and use the options that make the most sense for your company.

The final research card in your deck is the request for quote (RFQ).

The Request for Quote

Companies send an RFQ at the end of the process. You’ve seen the vendor proposal, viewed a demo and checked references. But what will the impact on your bottom line be?

You may have put a budget line in your RFP, but now that you and your vendors have set the expectations, an RFQ moves the discussion from generalities to exact figures.

Sending an RFQ will shed light on the final piece of the puzzle and may help you choose the product that checks both your requirements and affordability boxes.

The RFQ, unlike its name suggests, is more than you saying, “What’s the final bill?” You can use this step to find out other final details like if or how the vendor has implementation services and what support they offer, based on the information in the RPFs.

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Special Considerations

There are a couple important factors to keep in mind in addition to what we’ve covered. Let’s quickly look at what they are.

RFPs Aren’t Always Required

RFPs are great. After all, we wrote a post that will help you nail your LMS RFP. But that doesn’t mean you’ll always need one.

If your business is smaller and doesn’t require a ton of functionality from an LMS, or your price range is on the low end, going through the arduous RFP process might not be worth it. This may also be true if you’re purchasing your first LMS, in which case your needs — and therefore the selection process — might not be as complex.

Be Wary of Templates

Templates can be helpful and cut down on the amount of work you need to do. But don’t fall prey to the siren call of a pre-made option. It’s too easy to download a template and use the entire thing — because if it’s in the template, it must be necessary!

In reality, you’re much better off using a template as a starting point (if you use one at all). No template can capture your exact needs because every company is unique.

So while templates, like ours for requirements, are helpful, always use them with this caveat: customize them to reflect your special situation. Our template lets you add and remove features as necessary, so it’s a good choice if you don’t want to start from scratch while having full control over the requirements you choose.

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Next Steps

The process of picking a new LMS demands effort, but it’s well worth the time and money you’ll spend. Following this LMS RFP template and guide will help your organization end up with a solution that users love and that fits your needs as perfectly as the Iron Man suit fits Tony Stark.

As you compare vendors, gather requirements and manage the RFP process, keep this thought at the forefront of what you do: “how can this system meet our exact, unique needs?” Answer that, and you’ll be on your way to finding a solution that will take your learning management to the next level.

Are you facing any hurdles in the process of managing your LMS RFP? Share your challenges with us in the comments — we’d love to help out!