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Request for Proposal (RFP)

A procurement document issued to invite qualified vendors to submit detailed plans, approaches, and pricing for delivering specified goods or services. In some industries, the term may be used with a more narrowly defined meaning.

Key Points

  • Used when the buyer seeks vendor solutions and approaches, not just a price quote.
  • Typically includes scope or requirements, evaluation criteria, and submission instructions.
  • Proposals are assessed against predefined, often weighted, technical and cost criteria.
  • Differs from an RFQ or IFB, which are used when requirements are well defined and price is the primary factor.

Example

A company planning a new customer support platform issues an RFP detailing business requirements and desired outcomes. Vendors submit proposals describing their technical solution, implementation plan, team qualifications, schedule, and pricing. The buyer scores each proposal using published criteria and shortlists the top two for negotiations.

PMP Example Question

Which document should a project manager issue to obtain detailed solution approaches and pricing from potential sellers when the scope allows for multiple technical options?

  1. Request for Quotation (RFQ)
  2. Request for Proposal (RFP)
  3. Purchase Order (PO)
  4. Change Request

Correct Answer: B — Request for Proposal (RFP)

Explanation: An RFP solicits comprehensive proposals, including technical approach and cost, whereas an RFQ focuses mainly on pricing for well-defined specifications.

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