Request for proposal (RFP)

A tender where the buyer describes a problem or outcome and asks suppliers to propose how they would deliver it. RFPs are scored on approach, experience and price together, not price alone.

Most software, website and consulting work is bought by RFP, because there is more than one good way to do it.

Also called: RFP

Related terms

Request for quotation (RFQ)

A tender for a clearly defined product or service where the buyer mainly wants a price. RFQs are usually smaller, faster and decided on the lowest compliant price.

Evaluation criteria

How the buyer will score bids: the questions or factors, how many points each is worth, and how price is weighed against quality. They are published in the tender and must be followed.

Best value

Choosing the bid that gives the best mix of quality, risk and price, not simply the cheapest. Most IT services contracts are awarded on best value.