Request For Proposals Explained
A request for proposal is a solicitation often made through a bidding process by a company or agency interested in acquiring a service, commodity or an asset from a Supplier. This document is intended to provoke potential Supplier’s to submit proposals for the supply of the requested items. An RFP is normally submitted in the early stages of the procurement cycle either at the procurement or at the preliminary study stage and dictates the preliminary requirements for the service or commodity being requested and may also prescribe, to some extent, the exact format and structure the supplier should respond to the request.
Effective request for proposals will typically reflect the plan and long/short term objectives of the business; providing a detailed insight through which the supplier is able to offer a corresponding reply to the request. This form of request is quite similar to a Request For Information (RFI) and a Request For Quotation (RFQ).
Principally, a request for proposals will:
• Inform the supplier that the organization is looking to purchase services or goods from them and encourages them to (more…)