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 typically includes a statement of requirements (SOR) to be met by prospective respondents wishing to make a bid to deliver the required solutions. It might cover products and/or services to meet the given requirements. The RFP document also typically covers the related procurement process, evaluation criteria, commercial terms and conditions, timeliness and activities involved, and what respondents should include in their RFP response.
The purpose of an RFP is to ensure that the end result of the project will meet expectations and to ensure an open process. Ideally, multiple bidders will respond, giving the organization an opportunity to study a variety of proposals. 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 government agencies.
