RFP (Request for Proposal) refers to a request for proposal for a specific project or service. It is a document in which an organization describes a project to external suppliers or service providers and requests them to submit a specific proposal for the project. RFPs are mainly used by companies, government agencies, non-profit organizations, etc., and help select the best suppliers by clearly defining project goals, requirements, and evaluation criteria. It is common for a request to be made to consider bidding by referring to documents when submitting a request for proposal.

Companies that receive RFPs can decide whether or not to bid, and if they do, they submit a proposal along with a quote. The usual period is 1 to 2 weeks.

Sample work dialogue

• Client: We will prepare the RFP by next week.
• Developer: Then, how long should we give you the proposal and the quote after receiving the RFP?
• Client: You can submit the documents and quote for bidding two weeks after you receive the RFP.
• Developer: Yes, I understand.

This request for proposal details the features of the project that the client wants to create, but you should not assume that all features are 100% included. At first glance, things that seem obvious like personal information handling or simple functions may be missing from the RFP. Even after receiving the RFP, you should carefully check if there are any missing parts and contact the client to see if those are not desired.

Even though you send the RFP, let me know if you have any questions!

Then, you can create a quote based on the RFP and send it, but there is an advantage in that if you offer features or suggestions that the client has not considered, it increases the possibility of success in competitive bidding. However, since price is also included in the evaluation criteria, it is not good to make a proposal that would raise the price too much.

Key components of an RFP

1. Project Overview:

Provides a brief description of the project's purpose and objectives. This allows proposers to understand the project's background and needs.

2. Detailed requirements:

Specifies the specific requirements of the project and the expected deliverables. It can include technical specifications, functional requirements, and performance standards.

3. Proposal submission guidelines:

Provides guidelines for preparing and submitting proposals. It clearly explains the format, length, submission deadline, and required documents.

4. Evaluation criteria:

Explains the criteria that will be used to evaluate proposals. It can include price, quality, experience, technical skills, and timeliness.

5. Project schedule:

Presents the key dates and milestones of the project. It includes the start date, completion date, and intermediate review dates, allowing bidders to plan accordingly.

6. Budget:

Specifies the budget allocated to the project. This helps bidders to estimate realistic costs and prepare proposals.

Importance of RFP writing

1. Clear communication:

RFPs are a tool that allows the client to clearly communicate their expectations and requirements for the project. This helps to reduce misunderstandings and ensure that suppliers make accurate proposals.

2. Fair competition:

RFPs provide an opportunity for clients to receive proposals from multiple suppliers fairly. This allows the client to review various options and choose the best supplier.

3. Risk management:

By clearly defining project requirements and evaluation criteria, the client can manage potential risks in advance. This increases the likelihood of project success.

RFP process

1. RFP preparation:

• Define project requirements and prepare the RFP document. The final RFP is finalized after internal review and approval.

2. RFP distribution:

• Distribute the RFP to potential suppliers. It is generally distributed through email, website postings, and public bidding announcements.

3. Proposal receipt:

• Receive proposals from suppliers. Proposals must be prepared in accordance with the submission guidelines in terms of format and content.

4. Proposal evaluation:

• Review the submitted proposals according to the evaluation criteria. Price, technical skills, experience, and compliance with deadlines are comprehensively reviewed.

5. Negotiation and contract signing:

• Negotiate with the final candidates and finalize contract terms. Once the negotiations are complete, a contract is signed and the project begins.

RFP examples

Project Overview

• Project name: New website construction
• Purpose: Improve user experience and increase online sales

Detailed Requirements

• Functionality: User login, product search, online payment, administrator dashboard
• Design: Mobile optimization, brand identity reflection

Proposal submission guidelines

• Submission format: PDF file
• Submission deadline: June 30, 2024

Evaluation criteria

• Technical skills: 40%
• Price: 30%
• Experience: 20%
• Compliance with deadlines: 10%

Project schedule

• RFP distribution: May 1, 2024
• Proposal submission deadline: June 30, 2024
• Final selection announcement: July 15, 2024

Budget

• Budget range: 50 million won ~ 70 million won

Conclusion

RFPs are an important document for the successful execution of a project. It allows the client to communicate clear requirements and select the best supplier. For successful RFP writing, it is necessary to set clear goals, define specific requirements, and establish fair evaluation criteria. Through the RFP process, you can manage project risks and achieve optimal results.

❗More information that is good to know

Although discussions are held first through a meeting before requesting an RFP, the RFP is not always given in exactly the same way as it was in the meeting. For example, even if it was agreed that cloud servers could be used, the client may change their mind and say that it should be built on the company server. Therefore, it is not always necessary to bid because there was a discussion before. You should carefully read the RFP, ask if you have any questions, and confirm that you will proceed with the bidding before preparing the proposal.