Who invented rfp

Companies use RFPs so competing vendors will all provide the same information for comparison. When vendors answer an RFP with a proposal, they submit their bid, quoting the price for which they're willing to work.

They also describe how they intend to complete the project and give examples of similar projects they've worked on elsewhere. Who creates an RFP varies from company to company.

Other companies have executives who manage RFPs by working with department heads. Many times, department managers issue RFPs related to projects in their departments. Some companies appoint committees made up of members of the finance, sales, legal, product and marketing teams to handle RFP-related tasks. Ensure that vendor responses address all items of concern about the project. An RFI is a request for information. RFIs help a company to identify a pool of applicant vendors who are in a good position to respond to an RFP.

RFIs pose questions to gather information about vendors' histories, products and services they can provide and a general idea of whether individual vendors might be good candidates to receive a future RFP.

A request for information is not an invitation to submit a bid on a project. A company uses an RFQ, or request for quotation, when it has already developed a project and knows exactly what assistance it needs from a vendor. Companies issue RFQs when the price is the main factor or the only factor being shopped to vendors. A PQQ is a pre-qualification questionnaire, serving to pre-screen potential vendors.

If a company wants to accept bids for work or goods or services that have lower costs than major project work, it can issue a request for tender, also known as an RFT. The RFT is more streamlined than an RFP as it only asks vendors to tender their bids—the cost at which they can provide the work, good or service requested.

The submitting suppliers then spend many hours responding to the RFP. And so on…You get the picture. You need to do the client a favour, are prepared to lose, and want to maintain your relationship with them beyond RFPs. You have some expert resources who know how to complete the RFP and are prepared to pay for their time.

You are prepared to address the RFP specifications exactly as they are laid out due dates, client references, etc. One tiny error can disqualify you before they look at your proposal. Having had my say, do you have a solution focus perspective on how to improve the RFP process? However, I can agree that the RFP process has sucked a lot of value away from the work. I have often said that there has to be a special circle of hell for procurement.

Thanks Susan, there probably is a spot in hell for the procurement function. With assumed growth gone from our economy organizations naturally pay more attention to cost. It seems to me that procurement forget about quality and value in favour of commodity-like functionality.

In the process they actually drive up cost. List of Partners vendors. A request for proposal RFP is a business document that announces a project, describes it, and solicits bids from qualified contractors to complete it. Most organizations prefer to launch their projects using RFPs, and many governments always use them. When using an RFP, the entity requesting the bids is responsible for evaluating the feasibility of the bids submitted, the financial health of the bidding companies, and each bidder 's ability to undertake the project.

RFPs are used for complex projects, often requiring a number of sub-contractors. They describe the organization issuing the RFP, the scope of the project being undertaken, and the criteria for evaluating entries. They also outline the bidding process and the contract terms. The requests include a statement of work describing the tasks to be performed by the winning bidder and the timeline for finishing the work.

RFPs also advise bidders on how to prepare proposals, with specific guidance on how the bids should be formatted and presented. They generally include instructions on what information the bidder must include and the desired format. The proposal should not be so detailed that it hinders the contractor's creativity, or so vague that the contractor is left stumped. Most RFPs are issued by government agencies and other organizations in the public sector.

They are generally required to open up competition among private companies and remove bias from the process. The agencies want to ensure that they get the lowest and most competitive bid. However, any private or public organization may put out an RFP to get multiple bids and a variety of perspectives on the project. For example, a business that wants to change its reporting process from a paper-based system to a computer-based system may put in a request for proposal for hardware , software, and a user training program to establish and integrate the new system into the business.

A competitive bidding process may give them greater insight into the alternatives that are available. Government agencies or other entities may be required to issue requests for proposals to provide full and open competition and to drive down the cost of a solution.

Accepting a proposal that is most responsive to specifications may not always mean the lowest-priced bid. Skillfully creating a request for proposal can ensure the success or failure of the resulting solution.

If the specified requirements are too vague, the bidder may not design and implement an adequate solution for the problem. The RFP process begins with drafting a request for proposal.

Bidders review the solicitation and submit suggestions for improvement. After implementing feedback , the final request for proposal is issued. Bidders then submit their proposals. The customer narrows the selection down to a small group of bidders and enters negotiations on pricing and technical details. The customer may ask the remaining bidders to submit a best and final offer before awarding a contract. The contract is then presented to the company providing the best solution to the issue.

An RFP is, in part, an advertisement. It announces that a project is proceeding, and opens the door to qualified candidates who can get the job done. In government, the RFP has been adopted as a way to ensure that cronyism is removed as a factor in the rewarding of contracts.

It also opens up the process to competition, which can be expected to keep project costs lower. The alternative to an RFP is a less formal process requiring a project manager to research and identify potential vendors for a project. Depending on how exhaustive the search is, the potential responses can be limited.

New vendors and innovative answers may be less likely to be uncovered. A request for proposal RFP , request for quote RFQ , and request for information RFI are three distinct types of documents that businesses and other entities use to reach out to the business community for suppliers or contractors that they may be able to work with.

Say, for example, the Federal Railroad Administration issues a request for proposals to finance, design, construct, operate, and maintain a high-speed rail system. Interested parties submit proposals meeting the requirements outlined in the document. Based on the proposals received by the deadline, the Department of Transportation establishes commissions for further review and development of the proposals.

The DOT chooses the proposal most encompassing its goals and hires the company to carry out the work. This sample RFP from a nonprofit organization shows the level of detail necessary, in this case for a proposed overhaul of the organization's website. The proposal describes the project, provides an overview of the organization, and defines its goals for its website. It also details the products and services that are to be provided and defines in some detail the content, design, and functionality of the proposed website.

The sample is provided by TechSoup, a site that provides a library of how-to information and sample RFPs for nonprofits. Here are the answers to some commonly asked questions about RFPs.