Definition - What does Request for Proposal (RFP) mean?
A request for proposal (RFP) is a document issued by a business or an organization to request vendor bids for products, solutions and services. The RFP provides a procurement framework to streamline the initial stages of contractor solicitation.
RFP also may refer to a request for pricing.
A RFP informs vendors of customer needs and expectations. In turn, vendor proposals should respond specifically to the requirements outlined in the RFP.
RFPs are organized into the following three primary procedural categories:
Technical: Detailed and precisely formatted bid statement, including objective, content summary, required development, quality/quantity standards and projected deliverables
Administrative: Corporate history, team organization and references
Financial requirements: Financial data, multiple pricing options, risk analysis, projected milestones and tactical short/long-term business plan
Other types of requests include request for quotation (RFQ) and request for information (RFI).