RFP (Request for Proposal)
Procurement document inviting suppliers to propose a solution to a defined problem; common in private sector and international procurement.
Definition
RFP stands for Request for Proposal. It is a procurement document inviting suppliers to propose a solution to a defined problem or requirement. RFPs are common in private sector procurement and international procurement; UK public sector procurement under PCR 2015 / PA 2023 uses the term Invitation to Tender (ITT) for the most-equivalent concept. RFPs are typically more open than ITTs: they allow more supplier flexibility on proposed solution shape, whereas UK public ITTs typically have a defined specification the supplier responds to.
How it works in practice
RFPs are widely used in international procurement (US federal, Canadian federal, EU institution procurement using the term "RFP" alongside or instead of ITT) and in UK private sector. The shape varies by issuer: some RFPs are highly structured with defined response sections and evaluation criteria; others are open-ended with broad questions inviting supplier creativity. Strong RFP responses balance proposed solution with execution credibility: a clever solution that the supplier cannot realistically deliver will score lower than a less innovative but execution-credible proposal. UK suppliers responding to overseas RFPs should be familiar with the specific market context: US RFPs often expect detailed line-item pricing and substantial compliance section; European RFPs typically emphasise quality methodology and innovation. For UK public sector, treat "RFP" as a synonym for ITT and follow the substantive ITT guidance. For UK private sector RFPs the contract terms are negotiable in a way that public sector contracts typically are not; bidders should plan for substantive contract negotiation after preferred-supplier selection.
For UK suppliers responding to overseas RFPs, the contract negotiation phase after preferred-supplier selection is often where the substantive commercial position is settled; bidders should plan adequate senior commercial time for the negotiation rather than treating the RFP submission as the final commitment.
Common questions
Is RFP the same as ITT?
Substantially yes for practical purposes. The terms are used somewhat interchangeably in different markets. UK public sector typically uses ITT; UK private sector and international procurement often use RFP. The underlying instrument (a structured request for supplier proposals) is similar.
How is an RFP different from an RFI?
RFI (Request for Information) is an earlier-stage information-gathering exercise where buyers ask suppliers about capability without inviting a formal proposal. RFP follows RFI and invites the actual proposal. RFI is more comparable to a Prior Information Notice or market sounding; RFP is more comparable to an ITT.
Are RFP terms negotiable?
For private sector and international RFPs typically yes; the contract terms are often subject to negotiation after preferred-supplier selection. For UK public sector ITT-style procurement the terms are typically fixed before tender and bidders accept them as part of the response; substantive renegotiation post-award is restricted under procurement law.