 - A request for proposal (RFP) is a document that an organization posts to elicit bids from potential vendors for a product or service. For example, a new business or a business moving from a paper-based system to a computer-based system might request proposals for all the hardware, software, and user training required to establish and integrate the new system into the organization. Another business might draft an RFP for a custom-written computer application they wanted to outsource.The quality of an RFP is very important to successful project management because it clearly delineates the deliverables associated with the project and establishes a framework for project execution. Ideally, RFPs stipulate the requesting organization's requirements and the conditions demanded of applicants clearly enough to minimize the possibility of misunderstandings and errors. To that end, an RFP should include:- Specification of the product or service required, in as much detail as possible
- Information required about the bidder, including the amount bid, information about the proposed project leader, the responsibilities agreed to, a timeframe for developmental stages, and an overview of the vendor's company and prior experience in the area
- Any criteria for vendor eligibility or disqualification
- Relevant dates, including the deadline for application, the deadline for submission of supplemental information, dates for any associated interviews or open meetings, the date when the decision will be made, and the desired timeframe for the project
- Any requirements of confidentiality
- Stipulation of any legally binding commitments, such as adherence to dates or criteria on which the final decision will be based.
An RFP is part of an organization's procurement process, which begins with an assessment of needs and ends with delivery and/or support of the finished product or service. As such, the requirements of an RFP are likely to vary depending on the complexity of the product or service required. A less complex document, called a request for quotation (RFQ) is sometimes posted when the requirements are very clear-cut - for example, in the purchase of hardware.
| LAST UPDATED: |
25 Jul 2007
|
 |
Read more about request for proposal:
|
|
Do you have something to add to this definition? Let us know.
Send your comments to techterms@whatis.com
|
|
