An RFP (Request for Proposal) is a flexible document used when purchasers seek solution based responses to meet their needs or requirements. An RFP might be used when factors other than price are central to the evaluation of each offer or where there is no clearly defined specification or solution and the purchaser is seeking a range of options for innovations.
RFP therefore provides greater flexibility than request for tenders which usually have clearly defined specifications although they may appear to be similar in practice. RFP may be suited to professional services where the best solution is often not easily
RFP is applicable in procurement of services which are predominantly intellectual or advisory in nature.
RFP is applicable in the following conditions:
- The procurement of services or the combination of goods or services. (Services are a major component)
- The services to be procured are advisory or otherwise predominantly intellectual in nature.
Contents of Request for Proposal
1. The name and the address of the accounting officer of the procuring entity.
2. The general and specific conditions of proposals which may require the proposal include a technical proposal and a financial proposal.
3. Instructions for the preparation and submission of proposal and a financial proposal.
4. An explanation of where and when the proposals are submitted.
5. The procedures and criteria to be used to evaluate and compare the proposals including:
- The procedure and criteria for evaluating the technical proposals which shall include a determination of whether the proposal is responsive.
- The procedures and criteria for evaluating the financial proposals.
- Any other additional method of evaluation which includes interviews, presentation and the procedures and criteria for that additional method.
6. A statement giving notice of the restriction when entering into other contracts.
7. Anything else required under the act or the regulations to be set out in the request for proposals