A Request for Proposal (RFP) is a business document that outlines a new project and solicits bids from qualified contractors to complete it. It is a process and documentation used in soliciting bids for potential business or IT solutions required by an enterprise or government agency. An RFP specifies what the customer is looking for and describes each evaluation criterion on which a vendors proposal will be assessed. It is a project announcement posted publicly by an organization indicating that bids for contractors to complete the project are sought.
An RFP is used to ensure that cronyism is removed as a factor in the rewarding of contracts and to open up the process to competition, which can be expected to keep project costs lower. It is also used to boost competition to drive down the cost of a solution. A well-written RFP conveys the intention behind the proposal and ensures that the end result will meet expectations.
The RFP process usually involves the following steps:
- Set the criteria for selecting a vendor.
- Identify the needs for the project and include the requirements, scope, and deadline.
- Edit the RFP and make sure it is comprehensive enough by including a list of questions potential bidders could ask.
- Share the document with vendors and give them enough time to respond.
- Evaluate the responses and select the best vendor.
RFPs are particularly adept at lining up potential contractors for complex, service-based projects. They are common across a range of businesses, but they’re especially common in industries such as construction, professional services, and IT solutions.
