A well-written RFP does two things: it forces vendors to respond on your terms instead of theirs, and it surfaces the differences between proposals that would otherwise be buried in fine print. Here's the complete structure.
The 7 Required Sections
Section 1: Property Overview
Give vendors the information they need to price accurately:
- Total number of spaces (surface, structured, covered)
- Current utilization rate (if known)
- Current revenue (if applicable)
- Property type and primary user base (hotel guests, tenants, transient public)
- Hours of operation
- Existing equipment and infrastructure
- Any existing contracts or agreements that affect parking
Section 2: Scope of Services
Be specific about what you want the vendor to handle. Common scope items:
- Revenue collection and cash handling
- Staffing (attendants, valets, enforcement officers)
- Equipment operation and maintenance
- Monthly permit management
- Enforcement and towing coordination
- Customer service and dispute resolution
- Marketing and pricing strategy
Section 3: Fee Structure Requirements
Require vendors to respond with a specific fee structure. Do not let them respond with ranges. Ask for:
- Management fee as a percentage of gross revenue
- Any minimum monthly fees
- Itemized list of expenses that will be passed through to the owner
- Any performance bonuses or incentive structures
Section 4: Technology Requirements
Specify what technology you expect and who owns it:
- Payment system type (pay station, app, gated)
- Real-time occupancy reporting
- Online owner portal with access to revenue data
- Integration with your property management system (if applicable)
- Data ownership: Require that all transaction data, customer data, and occupancy data is owned by the property owner, not the vendor
Section 5: Staffing Requirements
- Minimum staffing levels by time of day and day of week
- Background check requirements for all staff
- Supervision structure
- Response time requirements for complaints and incidents
Section 6: Reporting Requirements
Require monthly reports that include:
- Gross revenue by day and by revenue type (transient, monthly, event)
- Occupancy rate by time period
- Enforcement activity (violations, tows)
- Customer complaints and resolutions
- Equipment downtime incidents
Section 7: Contract Terms
Require vendors to respond with their proposed contract terms, including:
- Initial term length
- Renewal options
- Termination for cause provisions
- Termination for convenience provisions (and any penalties)
- Equipment ownership at termination
- Transition assistance requirements
The 3 Questions Most Owners Forget
1. Who owns the customer data?
Every transaction creates data — license plates, email addresses, payment history. Some parking management companies treat this data as their property and use it to market to your customers. Require in the RFP that all customer data is owned by the property owner and cannot be used by the vendor for any purpose outside of operating your lot.
2. What happens to equipment if you terminate?
If the vendor installs payment kiosks, gates, or LPR cameras, who owns that equipment? If you terminate the contract, can you keep the equipment or does the vendor remove it? This is a major negotiating point. Ideally, equipment purchased with your money stays on your property.
3. What is the termination penalty?
Many parking management contracts have early termination fees — sometimes equal to 3–6 months of management fees. Know this number before you sign. A 5-year contract with a $30,000 termination penalty is a very different commitment than a 5-year contract with a 90-day notice period.
| RFP Section | Why It Matters |
|---|---|
| Property Overview | Accurate pricing from vendors |
| Scope of Services | Apples-to-apples comparison |
| Fee Structure | No hidden costs |
| Technology | Data ownership and transparency |
| Staffing | Service level accountability |
| Reporting | Ongoing oversight |
| Contract Terms | Exit options and equipment rights |
TPMA Recommendation: Send your RFP to at least three vendors. One response gives you no leverage. Two gives you a comparison. Three gives you a market.