Procurement term
RFP (Request for Proposal)
A formal invitation for suppliers to submit detailed proposals, including technical approach and pricing, in response to a defined government requirement.
What is RFP?
To define RFP simply: an RFP (Request for Proposal) is a procurement document issued when the contracting authority needs suppliers to propose how they would meet a requirement, rather than simply quoting a price for a pre-specified solution. Unlike an ITT where specifications are rigid, an RFP invites suppliers to bring their own methodology, innovation, or service design alongside a financial offer.
The RFP process runs in stages: the buyer publishes the RFP, suppliers ask clarification questions, vendors submit written proposals by a deadline, an evaluation panel scores them, and the highest-scoring compliant bid wins. RFPs typically evaluate submissions against weighted criteria that combine technical quality and price — similar to the EU's MEAT (Most Economically Advantageous Tender) principle. The weighting varies widely: some RFPs heavily favour technical merit (e.g., 70/30 technical/price split), while others approach 50/50. Shortlisted vendors may be invited to present or clarify.
In North America, RFP is the dominant term for most competitive public solicitations. In construction, an RFP for design-build or professional services lets agencies pick a contractor on approach and qualifications, not price alone — distinct from a hard-bid IFB. In the EU context, the equivalent is usually a competitive dialogue or open/restricted procedure with performance specifications. For vendors, an RFP response is a significant investment: it requires a tailored technical narrative, a staffing plan, relevant case studies, and a priced schedule — often 20 to 80 pages. Win rates in competitive RFPs typically range from 15% to 30%, making bid qualification decisions critical.
Example
A US county issues an RFP for a new court case management system; three vendors submit proposals and the county scores them on functionality (40%), implementation approach (30%), and price (30%).
Related terms
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