Request for Proposal (RFP)
A Request for Proposal (RFP) is a procurement document that invites suppliers to propose how they would meet a requirement, along with their price — used when the need is complex, open, or solution-oriented rather than a simple defined purchase. The buyer describes the problem, objectives and evaluation criteria, and suppliers respond with detailed proposals covering their approach, capability, methodology, timeline and cost.
Because an RFP is judged on more than price — technical merit, experience, service, risk and value — responses are scored against weighted criteria, often followed by presentations and negotiation. The RFP sits alongside the RFQ (price-focused, for defined items) and RFI (information-gathering), and is the right tool when the buyer wants suppliers' expertise to shape the solution — such as for services, systems, or major projects. A well-run RFP process, with clear criteria and fair evaluation, is central to sourcing complex requirements and selecting the best overall value rather than just the lowest quote.
For anything complex — a system, a service, a project — the cheapest quote isn't the point; the best solution is. The RFP is how buyers draw out suppliers' expertise and compare approach, capability and value, not just price. Running RFPs with clear weighted criteria is what separates good sourcing of complex needs from buying blind on cost.
When is an RFP used instead of an RFQ?
When the requirement is complex or open and you want suppliers to propose solutions and be judged on more than price.
How are RFP responses evaluated?
Against weighted criteria covering approach, capability, service, risk and cost — not price alone — often with presentations and negotiation.