Law Firm Request for Proposal (RFP)

Updated February 14, 2025 | Argopoint Consulting

WHY ALL TOP LEGAL DEPARTMENTS USE RFPS

Top-performing corporate legal departments strive to optimize their use of outside counsel, manage legal spend effectively (and for increased value), and achieve cost transparency. A Request for Proposal (RFP) is an essential tool for the best-in-class legal departments in the law firm selection process.

At Argopoint, we specialize in designing RFP best practices and tools for numerous Fortune 500 clients. Our experience ensures the RFP process runs efficiently, allowing in-house counsel to focus on their day-to-day responsibilities while improving decision-making in vendor selection for legal services. 

Our tailored process helps clients assemble a law firm panel best suited to their specific legal needs. This typically results in cost savings ranging from 5% to 20%, and in some cases, cost savings as high as 40%. A well designed outside panel also streamlines OCM (fewer, better firms are typically easier to manage) - all reducing complexity and driving efficiency within the legal department. 

STEPS AND COMPONENTS

It is important to note that the RFP is just one part of a broader law firm evaluation process (this is often overlooked - and when we hear about RFP "misfires" - it is usually the result of a bad process or poor vendor selection criteria).  An effective process - has many elements - and details will vary by legal department - however most "best-in-class" involve (and incorporate to varying degrees):

Prep and Research

• Formal legal spend analysis by legal sub-categories, jurisdiction, and relevant “buckets” of legal spend (a robust spend analysis program is typically the first, and required, step of any process)

• Research on qualified law firm candidates (a mix of incumbents and new firms is generally recommended)

• Conducting RFI's to gather critical screening data (an RFI and RFP enables a phased approach - both broad "searching" and then more narrow, focused evaluation of strongest offerings)

Execution

• Creating an evaluation framework and scoring methodology, incorporating legal metrics to evaluate each law firm proposal in a consistent manner (RFP scorecards and scoring matrixes)

• Law firm interview to increase clarity and align expectations (our process includes a structured, data-driven approach to law firm interviews.  "Chemistry" and other intangibles need to be assessed, but a structured interview based on best-practices increase the value of law firm interviews immensely)

• Team-based evaluation (and "roundtables") of outside counsel firms and specific attorneys against objective, formal selection criteria, quantifying differentiation in legal expertise

Negotiation

• Development of innovative financial agreements (including alternative fees as desired by clients)

• Fact-based, data-driven negotiations based on BATNA principles, establish optimal, improved economics (a structured, tested, and rigorous negotiation methodology is essential to success.  Argopoint's approach, process and tools are backed up by decades of academic research)

Ongoing Management

• Following law firm selection, creating ongoing “best in class” outside counsel management processes, structures, and roles to manage outside counsel rationalization on a “go-forward basis”. Building law firm panels and establishing legal billing guidelines ensures that the benefits from the RFP process continue to generate value over time. (Indeed, the benefits of any RFP process can, and often do quickly dissipate if appropriate mechanisms to manage and capture value are not put in place)

RFP BEST PRACTICES

Our experience has shown that investing the time and thought in creating a "decision-grade" RFP is well worth the investment. Conversely, while law firm RFPs can be a powerful tool for clients, a poorly designed RFP can damage strategic relationships with law firms and attorneys, and generate volumes of unhelpful data.  

Argopoint can provide substantial, valuable support for the RFP process.  We are experienced in implementing these processes on a department-wide scale (including roll-out to outside counsel) at Fortune 500 companies.  Contact us - we can help get you started.