A request for proposal (RFP) is a form of reverse auction, initiated by an organisation interested in the procurement of a service or product, that solicits a business proposal from potential suppliers.1 It is usually part of a complex sales process, and made through a bidding process.
"RFP" redirects here. For other uses, see RFP (disambiguation).
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.
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).