A request for proposal is a formal sourcing document asking qualified suppliers to propose how they would meet a defined business need. It is useful when solution approach, capability, service, risk, implementation, or value matters alongside price. The RFP should state scope, instructions, criteria, timeline, assumptions, contractual context, and how clarifications and decisions will be governed.
In plain English
It asks suppliers to explain their solution and commercial offer for a complex requirement.
Illustrative example
At Northstar Industrial Systems, qualified providers submit technical, implementation, support, security, and commercial proposals against the same enterprise software requirements.
- Related terms
- Request for information; Request for quotation; Technical evaluation; Bid comparison
- Lifecycle stages
- Source; Award
- Stakeholders
- Procurement; Supplier; IT and Security; Operations; Finance