What is a request for proposal (RFP)?

A request for proposal (RFP) is a document that a buying organization, often a government agency or large enterprise, posts to elicit a response -- a formal bid -- from potential vendors for a desired IT solution. It is a formal document that outlines a company’s requirement to purchase a good, product, or service. The buying organization (or buyer) issues the RFP to provide background information to potential vendors or contractors and invite them to submit a proposal (or bid) to meet the need. It specifies what the buyer is looking for and describes each evaluation criterion on which a vendor's proposal will be assessed.

RFPs can be issued for many types of requirements. For example information technology (IT), cybersecurity, yoga, training, diversity/equity/inclusion (DEI), staffing, and more.  A buyer can benefit from multiple bidders and perspectives when seeking an integrated solution calling for a mix of technologies, vendors and potential configurations. 

A vendor/contractor writes/prepares a proposal in response to an RFP. The RFP process includes a buyer issuing the RFP, collecting proposals, and selecting a winner. Sometimes, buyers will short-list or down-select certain vendors/contractors who they want more information from. This allows those companies to sometimes make a presentation to the buyer and present their best and final offer (BAFO). Ultimately, RFPs enable businesses to determine which vendors are best qualified to help overcome a challenge or achieve a strategic objective.