Term: Request for Proposals [RFP]
RFP (noun/abbreviation): Stands for Request for Proposals. It is a formal business document that announces a project, describes it, and invites qualified vendors or contractors to submit bids to complete the work.
synonyms: Tender, bid invitation, solicitation.
translation: piedāvājuma pieprasījums
example: The city council issued an RFP to find a construction firm capable of building the new library within a two-year timeframe.
The RFP Process
An RFP is used when a project is complex and requires more than just a price quote. The buyer is looking for the best solution, not just the lowest cost.
| Stage | Action |
| Drafting | The organization defines the project goals, scope, and technical requirements. |
| Issuance | The document is sent to specific vendors or published publicly. |
| Evaluation | The buyer compares the proposals based on a “scorecard” (experience, price, timeline). |
| Selection | A winning vendor is chosen and contract negotiations begin. |
RFP vs. RFI vs. RFQ
Businesses often use different “RF-x” documents depending on what they need to know:
- RFI (Request for Information): “I have a problem, tell me what solutions exist.” (Research phase).
- RFQ (Request for Quotation): “I know exactly what I want (e.g., 500 laptops), tell me your best price.” (Price-focused).
- RFP (Request for Proposal): “I have a goal, tell me how you would achieve it and what it will cost.” (Strategy-focused).
Key Components of an RFP
- Statement of Work (SOW): A detailed description of the tasks to be performed.
- Selection Criteria: How the winner will be picked (e.g., 40% experience, 30% price, 30% technical plan).
- Timeline: Deadlines for questions, the proposal submission, and the project start date.