A request for proposals (in English: request for proposal, abbreviated RFP) is a request, often made through a bidding process, by an agency or company interested in the provision of a commodity "Commodity (economy)" or service "Service (economy)"), to potential suppliers.[1] It is made in the early stages of the procurement cycle, either in the preliminary study, or a little later.
An RFP is used when the request requires technical expertise, specialized capability, or when the product or service required does not yet exist, so the proposal may require research and development to create what is required.
The RFP presents preliminary requirements for the merchandise or service, and can dictate to varying degrees the exact structure and format of the supplier's response. An effective RFP typically reflects short- or long-term business strategy and objectives, providing a detailed idea of which suppliers will be able to meet it.[2].
Similar requests include: the request for quotation (RFQ), for which the seller may simply be searching for a price index; and the request for information (RFI), in which the client needs more information from sellers before sending them an RFP. An RFI is usually followed by an RFP or an RFQ.[3].
In principle, an RFP:
Specs
An RFP typically involves more than one request for price. You may also request basic corporate information, company history, financial information (can the company supply without risk of bankruptcy?), technical capacity (used in major service supplies, where the required product or service has not been previously provided or where requirements could be satisfied by different technical means), product information such as available volume and estimated completion time, and customer references, which can be checked to determine the suitability of a supplier (including educational and military background of its employees on the project). College graduates and those with advanced college degrees can add "value" to the provider's proposition.
The ubiquitous availability of the Internet has led many public agencies to employ websites, either operated by them or by vendors, that provide RFP listings, as well as requests for information (RFI) and requests for quotation (RFQ). Many of these locations allow sellers to register at no cost to receive emails with requests that may interest them, whether general or for the specific category of the product or service they sell. Increasingly, the entire process is carried out online: the seller uploads PDF documents to the site with his response to the request in question. In other cases, for legal reasons, the response must be sent physically (CD, DVD or USB flash drive) by mail or a delivery service.
Request for Proposals (RFP)
Introduction
A request for proposals (in English: request for proposal, abbreviated RFP) is a request, often made through a bidding process, by an agency or company interested in the provision of a commodity "Commodity (economy)" or service "Service (economy)"), to potential suppliers.[1] It is made in the early stages of the procurement cycle, either in the preliminary study, or a little later.
An RFP is used when the request requires technical expertise, specialized capability, or when the product or service required does not yet exist, so the proposal may require research and development to create what is required.
The RFP presents preliminary requirements for the merchandise or service, and can dictate to varying degrees the exact structure and format of the supplier's response. An effective RFP typically reflects short- or long-term business strategy and objectives, providing a detailed idea of which suppliers will be able to meet it.[2].
Similar requests include: the request for quotation (RFQ), for which the seller may simply be searching for a price index; and the request for information (RFI), in which the client needs more information from sellers before sending them an RFP. An RFI is usually followed by an RFP or an RFQ.[3].
In principle, an RFP:
Specs
An RFP typically involves more than one request for price. You may also request basic corporate information, company history, financial information (can the company supply without risk of bankruptcy?), technical capacity (used in major service supplies, where the required product or service has not been previously provided or where requirements could be satisfied by different technical means), product information such as available volume and estimated completion time, and customer references, which can be checked to determine the suitability of a supplier (including educational and military background of its employees on the project). College graduates and those with advanced college degrees can add "value" to the provider's proposition.
The militaries of many countries use RFP to satisfy an operational requirement. After receiving the proposals, that military will normally prepare a detailed specification to call for a tender or auction to potential contractors. In civilian life, an RFP is usually part of a complex sales process, also known as enterprise sales.
RFPs often include specifications of the product, project, or service that is their subject. The more detailed these specifications are, the greater the likelihood that the proposals received will be adjusted. RFPs are generally sent to a list of approved suppliers or vendors.
Suppliers submit their proposals within a stipulated period. Proposals submitted after the deadline may or may not be taken into account, depending on the terms of the RFP. These proposals are used to evaluate whether a supplier or institutional partner is suitable. Typically organizations follow a detailed vendor selection process to arrive at a short list of those who will be invited to subsequent rounds of negotiation. This process may use vendor scoring models or conversations between the organization and potential vendors. These conversations may be about proposals (often to clarify technical capabilities, point out errors, or negotiate prices). In most cases only selected sellers are invited to participate in subsequent bids, or they may be invited to submit their best technical and economic proposal, commonly called Best Final Offer (BAFO). Subsequent changes may result in a Best Revised Final Offer (BARFO).
Once both parties, that is, the purchasing organization and the supplier, reach an agreement on the technical and commercial conditions of the proposal, they can move forward to the next steps, such as signing a contract, a text that formalizes the purchase transaction.
Many organizations today are becoming more cooperative in RFP development. This is especially true for universities and other large public bodies that make large technology purchases. Departments writing RFPs ask for specific use cases rather than providing a list of features, and make sure the RFP includes demos, a webinar, or meetings. This ensures that they fully understand all competing products before purchasing.[4].
References
[1] ↑ Gary Blake and Robert W. Bly, The Elements of Technical Writing, pg. 100. New York: Macmillan Publishers, 1993. ISBN 0020130856.
The ubiquitous availability of the Internet has led many public agencies to employ websites, either operated by them or by vendors, that provide RFP listings, as well as requests for information (RFI) and requests for quotation (RFQ). Many of these locations allow sellers to register at no cost to receive emails with requests that may interest them, whether general or for the specific category of the product or service they sell. Increasingly, the entire process is carried out online: the seller uploads PDF documents to the site with his response to the request in question. In other cases, for legal reasons, the response must be sent physically (CD, DVD or USB flash drive) by mail or a delivery service.
The militaries of many countries use RFP to satisfy an operational requirement. After receiving the proposals, that military will normally prepare a detailed specification to call for a tender or auction to potential contractors. In civilian life, an RFP is usually part of a complex sales process, also known as enterprise sales.
RFPs often include specifications of the product, project, or service that is their subject. The more detailed these specifications are, the greater the likelihood that the proposals received will be adjusted. RFPs are generally sent to a list of approved suppliers or vendors.
Suppliers submit their proposals within a stipulated period. Proposals submitted after the deadline may or may not be taken into account, depending on the terms of the RFP. These proposals are used to evaluate whether a supplier or institutional partner is suitable. Typically organizations follow a detailed vendor selection process to arrive at a short list of those who will be invited to subsequent rounds of negotiation. This process may use vendor scoring models or conversations between the organization and potential vendors. These conversations may be about proposals (often to clarify technical capabilities, point out errors, or negotiate prices). In most cases only selected sellers are invited to participate in subsequent bids, or they may be invited to submit their best technical and economic proposal, commonly called Best Final Offer (BAFO). Subsequent changes may result in a Best Revised Final Offer (BARFO).
Once both parties, that is, the purchasing organization and the supplier, reach an agreement on the technical and commercial conditions of the proposal, they can move forward to the next steps, such as signing a contract, a text that formalizes the purchase transaction.
Many organizations today are becoming more cooperative in RFP development. This is especially true for universities and other large public bodies that make large technology purchases. Departments writing RFPs ask for specific use cases rather than providing a list of features, and make sure the RFP includes demos, a webinar, or meetings. This ensures that they fully understand all competing products before purchasing.[4].
References
[1] ↑ Gary Blake and Robert W. Bly, The Elements of Technical Writing, pg. 100. New York: Macmillan Publishers, 1993. ISBN 0020130856.