It’s always a smart idea to offer to write a letter of recommendation for a colleague who you know is well qualified for the job in question. Consider it good career karma; after all, you never know when you’ll need a letter of recommendation for yourself, and your colleague may be happy to return the favor.
Inform yourself about the person you are recommending. Spend some time talking to them about their goals and the position they are applying for. Gather together their current resume, any memos or notes you may have on them, and any other information that will help you as you write the letter. The best recommendations are thorough and specific, and having all the information at hand will make the process much easier.