Request for proposal

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A request for proposal (RFP) is a form of reverse auction that solicits a business proposal by an organisation interested in the procurement of a service or product from potential suppliers. [1] It is usually part of a complex sales process, and made through a bidding process.[ citation needed ]

Contents

Unlike invitations to tender, which award contracts based upon the price and quality of the tender, RFPs allow suppliers more flexibility in proposing an original service or product in alignment with a company's needs.[ citation needed ]

Similar requests include a request for quotation (RFQ) and a request for information (RFI), where a customer needs more information from vendors before submitting an RFP. An RFI is typically followed by an RFP or RFQ. [2] When an RFP is made after negotiations with prospective contractors, the submitted tender is known as a BAFO (best and final offer).[ citation needed ]

Components

A request for proposal requires the bidder to produce an original business proposal based on the buyer's needs. Depending on the RFP document's specification, a bidder may be required to decide upon project expectations, timetable, product design, and vendors. Other requested information may include basic corporate information and history, technical capability, product information.[ citation needed ]

Role in government procurement

In United States government procurement, Federal Acquisition Regulation 15.203 covers requests for proposals, stating

Requests for proposals (RFPs) are used in negotiated acquisitions to communicate Government requirements to prospective contractors and to solicit proposals. [3]

The FAR allows for evaluation of proposals, further discussions with bidders and invitation for submission of written final proposal revisions (FPRs), upon which a final selection decision is based. [4] Federal government requests for final proposal revisions must

advise offerors that the final proposal revisions shall be in writing and that the Government intends to make award without obtaining further revisions. [5]

The term "request for proposals" is sometimes used in relation to government procurement in the United Kingdom, for example a request for proposals to raise and manage the UK Government's proposed Broadband Investment Fund was issued in June 2016. [6]

Other requests

The collective term RFX is often used to embrace a request for proposal (RFP), or any of the terms listed below. [7]

See also

References

  1. Blake, Gary; Bly, Robert W. (1993). The Elements of Technical Writing. New York: Macmillan Publishers. p. 100. ISBN   0020130856.
  2. "What's the difference between an RFI, an RFP, and an RFQ?". Humboldt State University. Archived from the original on 2015-07-21. Retrieved 2015-07-28.
  3. Federal Acquisition Regulation, 15.203 Requests for proposals, accessed 23 February 2023
  4. Government Accountability Office, Matter of: All Native, Inc., file: B-411693; B-411693.2; B-411693.3, published 5 October 2015, accessed 9 March 2023
  5. Federal Acquisition Regulation, 15.307 Proposal revisions, accessed 9 March 2023
  6. Infrastructure and Projects Authority and HM Treasury, Broadband Investment Fund, published 16 June 2016, accessed 23 February 2023
  7. James, M., Definition: RFx, TechTarget, updated May 2017, accessed 23 February 2023
  8. Tonti, Jon (July 3, 2012). "Out with Request for Proposals and in With Request for Solutions". Nearshore Americas. Retrieved 11 April 2017.