Hello Nayeem -
I'm afraid I don't have an easy answer for you. Most RFP's are sort of a game. You put a ton of effort into them and have a small chance of getting picked. Your best bet, I think, is to yes, answer the questions, but create a single one-page cover letter about why you are different/better. Get the company to read that first, and interpret your answers in that light.
I found Alan Weiss's "Million Dollar Consulting Proposals" helpful -
http://www.amazon.com/Million-Dollar-Consulting-Proposals-Proposal/dp/11...
But his advice is very anti-RFP. Don't answer the 200 questions; instead get to know the company you are working for, be the sole bidder on the contract, and by the time you get to the proposal, it is no surprise to anyone. RFP's send you the opposite way. Be careful.