Request for Proposal
From Wikipedia, the free encyclopedia
- For other meanings, see RFP (disambiguation)
A Request for Proposal (referred to as RFP) is an invitation for suppliers, through a bidding process, to bid on a specific product or service. An RFP is usually part of a complex sales process, also known as enterprise sales.
An RFP typically involves more than the price. Other requested information may include basic corporate information and history, financial information (can the company deliver without risk of bankruptcy), technical capability (used on major procurements of services, where the item has not previously been made or where the requirement could be met by varying technical means), product information such as stock availability and estimated completion period, and customer references that can be checked to determine a company's suitability.
RFPs often include specifications of the item, project or service for which a proposal is requested. The more detailed the specifications, the better the chances that the proposal provided will be accurate. Generally RFPs are sent to an approved supplier or vendor list.
The bidders return a proposal by a set date and time. Late proposals may or may not be considered, depending on the terms of the initial RFP. The proposals are used to evaluate the suitability as a supplier, vendor, or institutional partner. Discussions may be held on the proposals (often to clarify technical capabilities or to note errors in a proposal). In some instances, all or only selected bidders may be invited to participate in subsequent bids, or may be asked to submit their best technical and financial proposal, commonly referred to as a Best and Final Offer (BAFO).
[edit] RFP Variations
The Request for Quotation (RFQ) is used where discussions aren't required with bidders (mainly when the specifications of a product or service are already known), and price is the main or only factor in selecting the successful bidder. RFQ may also be used as a step prior to going to a full-blown RFP to determine general price ranges. In this scenario, products, services or suppliers may be selected from the RFQ results to bring in to further research in order to write a more fully fleshed out RFP.
A Request for Information (RFI) is used to determine what products and services are potentially available in the marketplace to meet a buyer's needs. RFIs are commonly used on major procurements, where a requirement could potentially be met through several alternate means. An RFI, however, is not an invitation to bid, is not binding on either the buyer or sellers, and may or may not lead to an RFP or (RFQ).
[edit] See also
[edit] External links
- Association of Proposal Management Professionals
- Strategic Sourcing | Europe - General information, best practices, tools and case studies about RFx and auction
- RFP Database - Free and public site for sharing RFPs
- [1] - Article about how to manage RFPs]
- RFP Tools and Database - Free and public site for creating RFPs and Reverse Auctions
