This article is featured on our fleet resource, the Clean Fleets Hub, in collaboration with Michigan EIBC.
A Request for Proposals (RFP) is a formal document used to solicit bids or proposals from vendors capable of delivering products or services for your fleet, such as EV charging equipment, telematics systems, or new vehicles.
An RFP clearly outlines what your organization needs, what qualifications vendors must meet, and how proposals will be evaluated. It ensures transparency and helps you compare multiple vendors on equal footing to select the one that best meets your operational and financial goals.
Why It’s Important to Have a Strong RFP
A well-written RFP signals that you know what you need and sets clear expectations from the start. It also builds a solid foundation for your future contracts, protecting your organization from risk and ensuring projects stay on schedule and within budget.
Strong RFPs are particularly crucial for clean fleet transitions, which often involve new technologies and funding sources. Unlike traditional fleet purchases, electrification and alternative fuel projects require coordination between equipment providers, installers, utilities, and sometimes state or federal grant programs. The RFP process is the first step toward solidifying strong partnerships with vendors and key stakeholders, which will ultimately lead to a more successful deployment. A well-defined RFP will help fleets:
- Align goals and expectations early. It ensures that all vendors understand your performance needs, site requirements, and timeline from the start, reducing costly change orders later.
- Navigate incentive and funding requirements. Many grant programs require competitive bidding or proof of cost reasonableness. An RFP provides documentation that you’ve followed a transparent process.
- Compare apples to apples. Clean transportation projects can vary significantly in terms of technology and pricing. An RFP standardizes proposals so you can fairly evaluate costs, performance, warranties, and long-term support.
- Build long-term partnerships. A straightforward RFP process helps establish accountability and communication with vendors that will be maintaining chargers, vehicles, or fuel systems for years to come.
Important Terms to Know
Clean fuel technologies often involve newer vendors, unfamiliar financing structures, and assets that require ongoing software support or utility coordination. EV chargers, for example, may depend on third-party networks or proprietary software; if a vendor goes out of business or fails to meet uptime guarantees, your fleet could lose access to critical infrastructure.
Including strong contracting terms ensures your organization retains control, minimizes downtime, and safeguards funding. Selecting RFP language carefully helps protect your investment and keep your clean fuel transition resilient, no matter what happens behind the scenes. Below are standard clauses used in fleet and EV charging RFPs and contracts, along with sample language that can be adapted to your project.
Indemnification Clause: Ensure your organization isn’t left responsible for costs or damages caused by a vendor’s legal or financial troubles.
Example: “The Vendor shall indemnify, defend, and hold harmless the Site Host, its officers, employees, and agents from and against any and all claims, damages, liabilities, costs, and expenses, including reasonable attorneys’ fees, arising out of or in connection with the Vendor’s performance of this Agreement, including but not limited to any claims arising from the Vendor’s bankruptcy, insolvency, or financial distress.”
Termination for Insolvency: Provide the ability to terminate the contract if the vendor becomes bankrupt or is unable to meet its financial obligations.
Example: “The Site Host may terminate this Agreement immediately upon the occurrence of any of the following events: (a) the Vendor files a petition for bankruptcy or insolvency; (b) a petition for bankruptcy or insolvency is filed against the Vendor and is not dismissed within sixty (60) days; or (c) the Vendor makes an assignment for the benefit of creditors or otherwise ceases to conduct business in the ordinary course.”
Right to Step In: Allow the operator to “step in” and recover assets if a vendor stops operating or fails to perform. This is especially important for charging projects or vehicle leases, where the equipment remains critical to ongoing fleet operations.
Example: “In the event that the Vendor becomes insolvent, declares bankruptcy, or fails to meet the performance standards outlined in this Agreement, the Site Host shall have the right to step in and assume control of project assets, including EV charging equipment and associated infrastructure, to ensure continued operation and service.”
Force Majeure Clause: Clarify what happens if unforeseen events prevent either party from fulfilling their contractual obligations.
Example: “Neither party shall be liable for failure or delay in performing its obligations under this Agreement if such failure or delay results from events beyond its reasonable control, including but not limited to acts of God, war, terrorism, fire, flood, epidemics, labor disputes, or government actions (‘Force Majeure Event’). The affected party shall promptly notify the other party of the Force Majeure Event and use commercially reasonable efforts to resume performance as soon as possible.”
Dispute Resolution: Outline how disagreements between you and the vendor will be resolved. Clear dispute resolution terms save time and money if issues arise later.
Example: “Any dispute, claim, or controversy arising out of or relating to this Agreement shall first be subject to good faith negotiations between the parties. If such negotiations fail to resolve the dispute within thirty (30) days, the parties agree to submit the matter to mediation administered by a mutually agreed-upon mediator. If mediation is unsuccessful, the dispute shall be resolved by binding arbitration in accordance with the rules of the American Arbitration Association. Each party shall bear its own costs and expenses.”
These clauses aren’t meant to intimidate or discourage fleets from adopting clean fuels; they simply protect against worst-case scenarios. Including them ensures that, if something unexpected happens, your organization has clear safeguards in place to keep operations running smoothly and investments secure.
For fleets investing in cleaner vehicles, chargers, or telematics, these terms help manage risk and ensure projects remain financially and operationally sustainable. When designed thoughtfully, an RFP not only helps you select the right partners, it also lays the groundwork for long-term success.