Request for Proposal | Iris AI Glossary

A Request for Proposal (RFP) is a formal document organizations use to solicit detailed bids from vendors when they have a defined business problem and want to evaluate multiple solutions.

What Is an RFP?

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.

What Does RFP Stand For?

RFP stands for Request for Proposal. It is sometimes called a request for proposals (plural) or abbreviated as RFP in procurement, sales, and government contexts. The term is used across industries — from technology and healthcare to construction and financial services — wherever organizations need to evaluate multiple vendors before making a purchasing decision.

What Is an RFP Used For?

RFPs are used when a company knows what problem it needs to solve but wants vendors to propose how they would solve it. Common use cases include:

Selecting a new software platform or SaaS vendor
Hiring a professional services firm (consulting, legal, marketing)
Procuring enterprise technology infrastructure
Sourcing government contracts and public sector vendors
Evaluating security, compliance, and data management vendors

If you already know exactly what you want and price is the only variable, an RFQ is more appropriate. If you're still in early discovery mode, start with an RFI.

What Is Included in an RFP?

A well-structured RFP typically includes the following sections:

Executive summary — Background on the organization and the problem being solved
Scope of work — What the vendor is expected to deliver, including timelines and milestones
Technical requirements — Specific features, integrations, or compliance standards required
Evaluation criteria — How responses will be scored (price, capability, experience, etc.)
Submission instructions — Format, deadline, and point of contact
Terms and conditions — Legal, contractual, and confidentiality requirements

What Is the RFP Process?

The typical RFP process follows these steps:

Define requirements — Internal stakeholders agree on what they need and what success looks like
Write the RFP — The document is drafted with all requirements, evaluation criteria, and submission guidelines
Distribute to vendors — The RFP is sent to a qualified shortlist of potential vendors
Vendor Q&A — Vendors submit clarifying questions; the buyer responds to all parties equally
Receive proposals — Vendors submit their responses by the deadline
Evaluate responses — A cross-functional team scores proposals against the defined criteria
Select a vendor — The winning vendor is notified and contract negotiations begin

RFP vs RFI vs RFQ: Key Differences

These three procurement documents are often confused. Here is how they differ:

RFI (Request for Information) — Used early in the process to learn what solutions exist. No commitment, no pricing. Exploratory only.
RFP (Request for Proposal) — Used when the problem is defined and you want vendors to propose solutions. Evaluates approach, capability, and value — not just price.
RFQ (Request for Quotation) — Used when requirements are fully defined and price is the deciding factor. Transactional and specific.

The typical sequence is: RFI → RFP → RFQ, though many organizations skip stages depending on how well-defined their needs are.

How AI Is Changing RFP Responses

For the vendors receiving and responding to RFPs, the process has historically been one of the most time-consuming parts of the sales cycle. The average RFP takes 9 people 32 hours across 10 days just to produce a first draft. AI-powered platforms like Iris have changed this by generating complete first drafts in minutes from a company's verified knowledge base — with inline citations and confidence scores on every answer. Teams using Iris report completing RFP responses 70–80% faster, with higher accuracy and consistency across every submission.

Purpose of an RFP

RFPs bring structure and transparency to the vendor selection process. They help organizations compare vendors objectively using standardized proposal formats, encourage creativity and innovation by giving vendors room to propose unique solutions, drive collaboration across internal teams such as finance, operations, and IT, and ensure fairness and accountability by evaluating proposals against defined criteria.

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 streamline response management, scoring, and collaboration.
Follow up professionally: Notify all vendors of the outcome to maintain positive relationships for future projects.

Frequently Asked Questions: What Is an RFP?

What is the main purpose of an RFP?
A Request for Proposal's main purpose is to invite detailed proposals from potential vendors to solve a specific business need. It allows organizations to evaluate various solutions and vendor capabilities beyond just cost, helping them find the best overall fit or partner for a project.

How is an RFP different from an RFQ or RFI?
An RFP asks vendors to propose how they would solve a problem, focusing on solution quality and vendor expertise. An RFQ is only used to get price quotes for a clearly defined product or service. An RFI is a preliminary request to gather general information about potential solutions before any formal proposals are solicited.

When should I use an RFP instead of an RFQ?
Use an RFP when your project requires creativity or a tailored solution and you want to evaluate vendors on factors like approach, experience, and value — not just price. If your requirements are completely fixed and price is the only variable, use an RFQ instead.

What should be included in an RFP?
A well-written RFP includes an executive summary, scope of work, technical requirements, evaluation criteria, submission instructions, and terms and conditions. These components ensure vendors understand exactly what the buyer needs and how their responses will be judged.

Can RFPs be automated with software?
Yes. Platforms like Iris automate RFP response generation by pulling from your verified content library, generating first drafts in minutes, and routing sections to the right reviewers — cutting response time by 70–80%.

How long does an RFP process take?
The buyer's RFP process typically takes 4–12 weeks from distribution to vendor selection, depending on complexity. For vendors responding, a single RFP response averages 32 hours of internal effort without automation.

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