You are on page 1of 3
yeas Requestor proposal - Wikipedia, the ree enoyelonedia Request for proposal From Wikipedia, the free encyclopedia ‘A request for proposal (RFP) is a solicitation made, often through a bidding process, by an agency or company interested in procurement ofa commodity, service or valuable asset, to potential suppliers to submit business proposals.!"! It is submitted early in the procurement cycle, cither at the preliminary study, or procurement stage. The RFP process brings structure to the procurement decision and is meant to allow the risks and benefits to be identified clearly up front] ‘The REP presents preliminary requirements for the commodity or service, and may dictate to varying degrees the exact structure and format of the supplier's response. Effective REPs typically reflect the strategy and shortong-term business objectives, providing detailed insight upon which suppliers willbe able to offer a matching perspective,/3] Similar requests include a request for quotation and a request for information, In principle, an RFP: = informs suppliers that an organization is looking to procure and encourages them to make their best effort. = requires the company to specify what it proposes to purchase. If the requirements analysis has been prepared properly, it can be incorporated quite easily into the Request document. = alerts suppliers that the selection process is competitive. = allows for wide distribution and response. = ensures that suppliers respond factually to the identified requirements. = is generally expected to follow a structured evaluation and selection procedure, so that an organization can demonstrate impartiality - a crucial factor in public sector procurements. Contents 1 Specifications 2 Other requests. 3 See also 4 References Specifications ‘An RFP typically involves more than a request for the price. Other requested information may include basie corporate information and history, financial information (can the company deliver without risk of bankruptcy), technical capability (used on major procurements of services, where the item has not previously been made or where the requirement could be met by varying technical means), product information such as stock availability and estimated completion period, and customer references that can be checked to determine a company’s suitability (including educational and military background of its employees on the project --- college graduates and those with advanced college degrees may add "value" fiom the bidder, as may an employee's military background [especially in a similar area] as the contract). enuwikpediacrghulRequest for proposal 19 eave equator propo Wika, te free encsooaa In the militaries of many countries, an RFP is often raised to fulfill an Operational Requirement (OR), after which the military procurement authority will normally issue a detailed technical specification against which tenders (ie., bids) will be made by potential contractors. In the civilian use, an RFP is usually part ofa complex sales process, also known as enterprise sales. RFPs offen include specifications of the item, project or service for which a proposal is requested. The more detailed the specifications, the better the chances that the proposal provided wil be accurate. Generally RFPs are sent to an approved supplier or vendor lst. The bidders retum a proposal by a set date and time, Late proposals may or may not be considered, depending on the terms of the initial REP. The proposals are used to evaluate the suitability as a supplier, vendor, or institutional partner. Typically organizations follow a detailed vendor screening process to short lst the vendors who should be invited for further rounds of negotiation. This screening process could either be vendor scoring models or internal discussions within the buyer organization. Discussions may be held on the proposals (often to clarify technical capabilities or to note errors in a proposal or in many cases to negotiate on the price). In most instances, only selected bidders may be invited to participate in subsequent bids, or may be asked to submit their best technical and financial proposal, commonly referred to as a Best and Final Offer (BAFO). Subsequent changes can be referred to as the Best and Revised Final Offer (BARFO). Once both the parties ic. a buyer organization and seller organization agree on the technical and commercial terms and conditions of the proposal, they could move on to next steps like contract signing, statement of work which would formalize the purchase transactions. Other requests. ‘A request for quotation (RFQ) is used when discussions with bidders are not required (mainly when the specifications of a product or service are already known) and when price is the main or only factor in selecting the successfil bidder. An RFQ may alo be used as a step prior to going to a fill blown RFP to determine general price ranges. In this scenario, products, services or suppliers may be selected from the RFQ results to bring in to further research in order to write a more filly leshed out RFP. RFP is sometimes used for a request for pricing. A request for information (RFI) is a proposal requested ftom a potential seller or a service provider to determine what products and services are potentially available in the marketplace to meet a buyer's needs and to know the capability ofa seller in terms of offerings and strengths of the seller. RFIs are commonly used on major procurements, where a requirement could potentially be met through several alternate means. An RFI, however, is not an invitation to bid, is not binding on either the buyer or sellers, and may or may not lead to an RFP or RFQ. A request for qualifications (RFQ) is a document often distributed before initiation of the RFP process. It is used fo gather vendor information from multiple companies to generate a pool of prospects. This eases the RFP review process by preemptively short-listing candidates which meet the desired qualifications. A request for tender (RFT) is more commonly used by government. See also = Call for bids = Contract A = E-tendering enuwikpediacrghulRequest for proposal 20 eave Requestor proposal - Wipe there enylopedia = ERFx = Funding Opportunity Announcement = Outsourcing = Proposal software = Qualifications- Based Selection = Reverse auction = Statement of work = Strategic sourcing = Tendering References 1. 4 Gary Blake and Robert W. Bly, The Elements of Technical Writing, pg. 100. New York: Macmillan Publishers, 1993. ISBN 0020130856 2, ® Glenn Wheaton (2008) Request for Proposal (http://www epiqtech.com/reque at Epigtech.com (accessed on November 21, 2008) 3. * "How Request for Proposal should be used in busin (http://www negotiations.com/articles/procurement-terms/). Negotiations.com. Retrieved 2013-05-16. Retrieved fiom "http/en. wikipedia.org/w/index.phptitle-Request_for_proposal&coldid~584124896" Categories: Sales | Auctioneering | Outsourcing | Procurement tfor-proposalrfp.htm) online | Negotiation Experts" = This page was last modified on | December 2013 at 22:39, = Text is available under the Creative Commons Atribution- ShareAlike License; additional terms may apply. By using this site, you agree to the Terms of Use and Privacy Policy. Wikipedia® is a registered trademark of the Wikimedia Foundation, Inc., a non-profit organization. enuwikpediacrghulRequest for proposal 29

You might also like