RFP (request for proposal)

The RFP asks for an approach, pricing, references, security and compliance answers and often a presentation. Responses are scored against the stated criteria and the top vendors are shortlisted.

Public bodies use formal RFPs for many purchases. In the US federal government, part 15 of the Federal Acquisition Regulation (FAR) governs RFPs in negotiated acquisitions; it requires them to describe the requirement, the expected contract terms, what the proposal must include and the evaluation factors with their relative importance. Large private companies use RFPs for big or risky purchases, often run by procurement.

Example: a hospital network issues an RFP for patient scheduling software with 120 questions, a 4-week deadline and weighted scoring: 40% functionality, 30% price, 20% security and 10% references. Six vendors respond, three are shortlisted for demos and one wins a 3-year contract.

For vendors, an RFP is expensive to answer and hard to win if you first hear of it when it lands. The vendors who win have often talked to the buyer before the document was written. Many sales teams track RFP win rates separately and decline RFPs where they had no earlier contact with the buyer.