Iris Glossary-Request for Proposal (RFP)

What is a Request for Proposal?

A Request for Proposal (RFP) is a formal document organizations use to solicit bids from potential vendors when they have a defined business problem but are open to multiple solutions.

Unlike an RFQ (Request for Quotation), which focuses primarily on price, or an RFI (Request for Information), which gathers early-stage insights, an RFP is designed to evaluate how vendors approach solving a specific challenge—and which partner offers the most value, innovation, and alignment with the buyer’s goals.

Purpose of an RFP

RFPs bring structure and transparency to the vendor selection process. They help organizations:

Compare vendors objectively by using standardized proposal formats.
Encourage creativity and innovation, giving vendors room to propose unique solutions.
Drive collaboration across internal teams such as finance, operations, and IT.
Ensure fairness and accountability by evaluating proposals against defined criteria.

The RFP process helps companies move beyond price competition toward strategic partnerships built on value and capability.

When to Use a Request for Proposal

An RFP is most effective when:

The problem is clearly defined, but the solution is not.
Multiple vendors could address the challenge in different ways.
The project involves collaboration, customization, or technical implementation.
The organization seeks a long-term partner, not a one-time transaction.

For example, a company looking to improve customer onboarding might issue an RFP to explore solutions such as CRM software, automation tools, or user experience consulting—all with different approaches to achieving the same goal.

Key Components of an RFP

A strong RFP gives vendors the clarity to respond effectively while enabling buyers to evaluate proposals consistently.

Introduction: Provide background about your organization, goals, and challenges.
Problem Statement: Describe what you’re trying to solve and why it matters.
Scope of Work: Outline project requirements, deliverables, and timelines.
Submission Guidelines: Specify formatting, deadlines, and points of contact.
Evaluation Criteria: Be transparent about what matters most—cost, technical fit, innovation, or implementation speed.

Learn more: RFP Evaluation

Benefits of Using RFPs

Objectivity: Enables side-by-side comparison of proposals.
Transparency: Promotes fairness and reduces bias in vendor selection.
Innovation: Encourages vendors to propose creative solutions.
Collaboration: Aligns internal stakeholders around shared success metrics.
Accountability: Documents decision-making for compliance and future reference.

Best Practices for RFP Management

Be specific but flexible: Define goals clearly but allow room for innovation.
Offer a Q&A period: Give vendors an opportunity to clarify details before submission.
Use automation tools: Platforms like Iris Pro streamline response management, scoring, and collaboration.
Follow up professionally: Notify all vendors of the outcome to maintain positive relationships for future projects.

When Not to Use an RFP

You may not need an RFP if:

You already have a preferred vendor or renewal contract.
The project is price-driven (use an RFQ instead).
The project scope is still undefined (start with an RFI).

Why RFPs Matter

RFPs are more than procurement paperwork—they’re frameworks for strategic partnerships. When done correctly, they promote clarity, accountability, and creativity across every stakeholder involved.

A successful RFP doesn’t just find the lowest price—it finds the right fit.

Continue reading: RFP Cover Letter | Sample RFP Response

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