Some RFPs require you to submit a compliance matrix as part of your proposal. In other instances, you may want to include one even if it's not required.
Basically, a compliance matrix is a cross-reference table that tells the evaluators where they can find your responses to specific RFP requirements. It looks something like this:

In this example, the RFP requirements are listed in the 2nd column. The next four columns -- SOW, Section L, Section M, and Other RFP Sections -- indicate where the requirement is mentioned in the RFP. So, for example, the RFP requirement for "Construction Services" in the last row of the table, can be found in Section 4.0 of the RFP's Scope-of-Work, as well as in clauses L21.A and M4.1.A of the RFP.
The first and last columns of the table show the evaluators where they can find where you have addressed each RFP requirement. For "Construction Services," they can turn to your numbered paragraph 1.A.2.4 in your proposal and find your response there. They can also find it by proposal section (A-6) and/or by page number (page 13 and 15).
In addition to showing evaluators where to find things, compliance matrices demonstrate to them that you have paid careful attention to the RFP and have taken the time to identify the requirements. They are also useful as internal checklists, which you can use to make sure that you have addressed everything that the RFP asks for.
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Debra,
After more than 18 years in this business, I ran into a new approach of writing a technical response to statements of objectives and technical requirements.
One of my Subject Matter Experts (SME's)on a multi-Billion dollar RFP submitted his response to requirements that I extracted from the RFP, Discovery and several Due Diligence visits at sites across the country. I also received submittals from six other SME's.
This particular fellow, a PhD, submitted 18 pages that read like a comic strip. He developed scenarios of fictious events and wrote a story for each while attempting to describe his technical solution for each scenario.
However, his development of the scenario was off the wall; he created several characters and built a fictional series of events that might have occured or could potentially occur. However, his accounts were so incomprehensible that he came across as a dimwit. I rewrote his entire section as I expected to do, but he was not a happy camper.
As a result, I can say to your readers that this is not the way to write a technical proposal. Stick to the standards of objectives, the scope of work and requirements. Prepare a response that demonstrates that you have your head screwed on right, that you understand the of problems that your customer and the technical challenges that he could encounter, but that you have a solution that demonstrates that you have a solution to his problem that comes from your experience of solving similar problems.
Do not write a comic strip. It doesn't pass the laugh test, especially when you are responding to a multibillion dollar RFP.