A Request for Proposal (RFP) is a formal invitation issued by a business or agency requesting interested vendors to submit written proposals meeting a particular set of requirements. If interested in bidding for the project, vendors respond with:
- A description of techniques.
- A plan of work.
- A detailed budget.
- Supporting information.
All of the above items must outline how the vendor will meet the organization’s requirements. An RFP may form part of the final contract once negotiations between the enterprise and the vendor are completed.