What Is a Request for Proposal (RFP)?
A request for proposal (RFP) is a business document that announces and provides details about a project, as well as solicits bids from contractors who will help complete the project. Most organizations prefer using RFPs, and, in many cases, governments only use requests for proposal. A request for proposal for a specific program may require the company to review the bids to examine their feasibility, the health of the bidding company, and the
bidder‘s ability to do what is proposed.
A request for proposal is a project funding announcement posted by an organization for which companies place bids. The RFP outlines the bidding process and contract terms and guides how the bid should be formatted. RFPs are used primarily by government agencies to get the lowest possible bid. RFPs allow the requesting company to get multiple bidders.
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