Request for proposal (RFP)
Reviewed by Dasha ShakovVP Marketing, Proton
Updated
What is request for proposal (RFP)?
A request for proposal (RFP) is a formal document in which a buyer describes a need and invites suppliers to propose how they would meet it. Proposals cover price, service, terms and qualifications, and large customers such as hospitals, universities and government agencies use RFPs to choose a distributor for a multi-year supply contract.
How it works
An RFP takes far more work to answer than an RFQ. The buyer is choosing a supplier for years, so the proposal covers delivery, service levels, reporting and account management, and prices a long list of commonly bought items. Winning leads to contract pricing for the length of the agreement.
Request for proposal (RFP) example
A school district’s RFP for three years of janitorial supplies asks bidders to price 250 items, describe their delivery schedule and include a custodial training plan.
Related terms
- Request for quote (RFQ)A request for quote (RFQ) is a customer’s request for prices and availability on a specific list of items and quantities.
- Contract pricingContract pricing is a set of fixed prices agreed with a specific customer for specific items over a set period, after a negotiation, bid, RFP or GPO deal.
- Group purchasing organization (GPO)A group purchasing organization (GPO) is an organization that negotiates supply contracts for members that buy and use the products, such as hospitals.
- QuoteA quote is a distributor’s written offer to sell specific items, in specific quantities, at stated prices, with availability, lead time and an expiry date.
