Request for Proposal (RFP) 101: Everything You Need to Know
October 28, 2025
By
Evie Secilmis
Request for Proposal (RFP) 101: Everything You Need to Know
When a business needs a solution — not just a price — the Request for Proposal (RFP) is where the journey begins.
An RFP is more than a procurement formality. It’s a structured process that helps organizations identify the right partner, evaluate competing solutions, and ensure transparency in decision-making.
If the RFQ is about price, the RFP is about value.
What Is an RFP?
A Request for Proposal (RFP) is a formal document an organization uses to solicit bids from potential vendors when they have a defined problem but are open to different solutions.
Unlike an RFQ, which focuses on “how much,” an RFP focuses on “how best.”
It invites vendors to demonstrate how their product or service can meet the buyer’s needs, why they’re the right fit, and what makes their approach unique.
Common examples include:
- Implementing a new CRM platform
- Hiring a managed IT or cybersecurity provider
- Developing a custom software solution
- Overhauling a company’s marketing strategy
The goal is to evaluate value, capability, and fit — not just the lowest bid.
RFP vs RFQ vs RFI: Understanding the Differences
Think of it as:
👉 RFI = Learn
👉 RFP = Evaluate
👉 RFQ = Purchase
Why Organizations Use RFPs
RFPs are designed to ensure fairness, competition, and clarity. They help teams:
- Compare Vendors Objectively
By standardizing proposal formats, companies can evaluate multiple vendors side by side on the same criteria. - Drive Transparency
Especially in public-sector procurement, RFPs ensure decisions are made based on documented evaluation metrics rather than personal bias. - Encourage Creative Solutions
Vendors can propose innovative ways to solve a problem — not just meet a checklist. - Align Internal Stakeholders
RFPs bring together procurement, finance, IT, and operations to define what “success” actually looks like before vendors are chosen.
When to Use an RFP
Use an RFP when:
- You know the problem, but not necessarily the best solution
- Multiple vendors could address the need in different ways
- Collaboration, customization, or implementation will be required
- You’re seeking long-term partnerships rather than one-off transactions
Example:
You need to improve customer onboarding across multiple touchpoints. An RFP lets vendors pitch CRM tools, integration options, and change management approaches — each offering unique paths to success.
How to Write an Effective RFP
A strong RFP gives vendors the clarity they need to respond accurately — and gives you the structure to evaluate responses efficiently.
1. Start with Context
Explain your organization’s mission, goals, and current challenges. This background helps vendors tailor their proposals to your needs.
2. Define the Problem
Be explicit about what you’re trying to solve — not just the deliverables you think you need. This opens the door for creative solutions.
3. Outline Scope and Deliverables
List what you expect the vendor to provide, including timelines, performance expectations, and any technical or compliance requirements.
4. Specify Submission Details
Include clear instructions for proposal format, submission deadline, and point of contact. Clarity here prevents confusion and missed opportunities.
5. Establish Evaluation Criteria
Let vendors know what matters most — cost, experience, innovation, timeline, support, or security.
Transparency here sets expectations and encourages high-quality submissions.
How to Evaluate RFP Responses
Once proposals come in, it’s time to compare apples to apples. Use a scoring rubric to evaluate based on pre-defined factors, such as:
- Technical fit and functionality
- Vendor experience and references
- Total cost of ownership
- Implementation timeline
- Post-sale support
Many teams use evaluation committees or mutual scoring systems to ensure objectivity.
RFP Best Practices
- Be Specific, Not Prescriptive: Define the outcome you want, but leave room for vendors to innovate.
- Communicate Early and Often: Allow for a Q&A period before submission to clarify doubts.
- Stay Organized: Use RFP automation tools like Iris to manage responses, score vendors, and share insights across teams.
- Follow Up with Every Vendor: Whether they win or not, professional closure maintains your reputation and future relationships.
When Not to Use an RFP
Skip the RFP process when:
- You already have a preferred vendor or renewal contract
- Your needs are strictly price-based (use an RFQ instead)
- The project scope is too undefined for structured evaluation
If the project is still exploratory, start with an RFI to shape requirements before inviting proposals.
The Role of Technology in RFP Management
Modern RFP management has evolved beyond email chains and spreadsheets.
Using AI-powered platforms like Iris helps teams:
- Automate document parsing and response generation
- Collaborate across departments in real time
- Track progress with mutual action plans
- Compare responses using built-in scoring models
Automation doesn’t just speed up the process — it improves accuracy, compliance, and transparency at scale.
Final Thought
An RFP isn’t just about finding the right vendor — it’s about finding the right fit.
The process forces clarity, collaboration, and accountability across everyone involved.
When done right, it turns procurement into partnership — and ensures the winning proposal drives long-term impact, not just a signed contract.
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