A request for proposal is mostly used in business to announce and provide the details of a project and get bids from the contractors who help in the completion of the project. The request for proposal is used by governments for a specific program. It may also require the company to look after the bids for a proper examination of the feasibility and health of the bidding company.
An RFP gives an overall outline of the bidding process and the contract terms between the company and contractors for a particular project. These are generally used in the case of major and complex projects and specify the nature of the project. The various requests that one can put in through an RFP include a statement of work which means the company has to describe the tasks performed by the winning bidder and provide a proper timeline to complete the work. It includes information on issuing and the line of the business that the organization is in. RFPs also act as a guide or reference material for the bidders and provide them instructions on what the bidder should include as per the nature of the project.
Mostly the RFPs are issued and submitted by the government agencies or the companies may hire a proper securing procurement consultant who may help them during the entire timeline of the project. The various agencies that help in procuring an RFP generally keep their costs low to ensure getting the deal and being the most competitive bid. In some cases, an organization may seek bidding from multiple sources and perspectives for which they may need to put out a valid reason. Creating a request for a proposal process can determine the success or failure of a project and if the specified requirements are vague then the bidder may not implement the solution.
On the other hand, if the requirements are very detailed and provide a restriction then the bidder may lose sight of their creativity and their innovation becomes limited. The process starts by drafting a request for proposal and the bidders can review the draft. Any changes can be made in the draft if the bidder suggests so. After implementing the feedback given by the bidders and preparing a final draft the final request is issued. The customer can select a group of negotiators or bidders on the basis of their technical details. The remaining bidders can then submit the best possible offer and if both sides agree they may award the offer to the company.
As soon as the final contract is prepared it is presented to the team involved in the project and through discussion, they provide the best possible solution to the issue that is being dealt with. As it is described by various organizations that the RFP process is very complex and cumbersome and therefore is a challenge for many. For the success of a project, the proposals must have proper coordination and the various stakeholders communicate with each other and have a proper discussion to provide practical solutions.