A request for proposal (RFP) solicits offers from suppliers of goods or SERVICES needed by an organization. Similar terms are invitation to bid and request for quotation. Each term is associated with a different degree of request specificity and different procedures and expectations on the part of all parties involved.
In the RFP process, the buyer typically transmits a precise statement of its requirements to several potential suppliers who are qualified to provide the goods or services required. The buyer does not develop precise specifications (e.g., military specifications) but does expect suppliers to present their own design and/or specifications, either standard or customized PRODUCTS, to fulfill the requirements. Often the successful supplier is required to provide substantial performance guarantees.
