When companies have large and complex projects to work on, they outsource them to vendors specializing in their field. Companies create a Request for Proposal (RFP), soliciting proposals from vendors or service providers to partner with.
RFPs facilitate vendors' detailing of their scope of work and bid price for the company, allowing the organization to source the best-suited service providers without spending excessive time hunting them down.
RFPs include a detailed outline of the project scope and other attributes, helping the vendors submit proposals and eliminating ambiguity. Here are the sections the RFP covers:
About the company: A brief introduction, its mission, the founders and executives, and the organization’s business history.
Scope of project: Background of the project that explains the project details clearly to vendors. It also enlists specifications and priorities expected in project execution.
Timeline for bids and proposals: An upper cap on the timeline for submitting proposals and bids that assists vendors in pitching a timeframe.
Specification of budget: A standard budget that the company is looking to invest in. The vendors can pitch within this specification.
Proposed outcome: It mentions what is expected as the project's result and defines the objectives behind the project.
Glitches to be encountered: If a similar project has been carried out prior, the company mentions this to vendors for strategic proposal planning.
Indicate evaluation criteria: This section lists the parameters for evaluating the proposal, helping vendors adhere to these criteria.