Written by Marijn Overvest | Reviewed by Sjoerd Goedhart
Fact Checked by Ruud Emonds | Our editorial policy
RFP Process — Explained & Examples
What is an RFP Process?
- The RFP process is a series of actions that allow for the efficient use of RFPs or requests for proposals.
- The RFP process starts the procedure by which a procurement manager creates documents about sourcing or procurement of significant goods and services.
- RFPs are seen by governments as crucial for eliminating any cronyism in public procurements.
What is an RFP Process?
An RFP process is a series of actions that allow for efficient use of RFPs. It is usually used for head-starting procurement projects and most commonly used by governments.
RFP stands for Request for Proposal. Sometimes, it’s called a Request for Procurement, just because the proposal is about procuring materials. It is the procurement phase where you create documents as part of an announcement that you, the procurement manager, intend to create a project or task that requires the procurement or sourcing of important services or products. The document entails a description of the purchases, the materials needed, and a bid of solicitation from qualified contractors who can complete the procurement.
The 7-Step Plan for an RFP Process
Since we’ve clearly understood now how an RFP works, it’s time to move forward and learn the 7 step plan to building and establishing an efficient RFP process.
In any case, to build an efficient RFP process, you need to consider the following:
1. Initiate the Project
Before anything else, it’s crucial that there is a project that your company wants to do. There should be a clear definition of the said project’s objectives, scope, and budget. Identify the type of vendors needed for the your project, which will include your specific requirements and standards for qualifications.
2. Draft your RFP
Now it’s time to draft your RFP. Be specific with your requirements, expected timeline, scope of work, criteria, and your submission guidelines. If you have any special requirements, then it’s best to outline that as well in your RFP.
3. Identify the Right Vendors
It is not enough that you identify suppliers, it should be the right and qualified potential vendors. Identifying your potential vendors beforehand would save you much less time moving forward, allowing you to evaluate if they will fit with your set criteria and standards.
4. Promote and Distribute the RFP
Once you finish drafting your RFP and identify your potential vendors, it’s time to actually promote and distribute the said RFP to the pre-selected vendors to disseminate the news of your project. This will give your shortlisted vendors to review the guidelines and specifications.
5. Address Vendor Clarifications
In the event that there are questions and clarifications, you have to be sure to answer said questions. Make them understand the guidelines and specifications clearly.
6. Submit the Proposals
Now you wait. The proposals will be submitted to you after you clarify their queries. Once you receive the proposals, evaluate which ones you think are the right fit for the job.
7. Evaluate, Select, and Award
Clearly evaluate, select, and then finally award the vendors that you think qualifies for it. To do this, you should have a proper selection criteria. Then you negotiate and come to an agreement before setting the project into action.
Why Create an RFP?
If it’s just a simple procurement, why ask for several bidders, right? That’s because in simple procurement processes, there is no need for procurement requests. But if the procurement is a big project and it may need several bidders for the job to function, then you need RFPs to evaluate and bid on who gets to do the project.
For government projects, RFPs are very important for removing cronyism for public procurements. This means that everyone gets a fair chance in bidding for the project because the RFP highlights the ability and status of the bidder for the procurement manager or administrator to check.
If a bidder’s status makes the cut, the project is awarded to them. If not, then there is a chance for the other bidders to get the project. Depending on how many bidders there are for the project, there can be times when the potential responses coming from bidders are limited.
Without RFPs, there will be bias as to who gets the project. Friends and/or close associates with the procurement manager or admin will be awarded the contract for the proposal without looking at the other bidders. Most of the time, this system fails because the one who gets the contract is not able to finish the project. If they do, the results are often poor.
RFP in the Procurement Process
As a whole, RFPs often fit during the early stages of the procurement process. Proposals are often used when you need to announce something right, so it’s only natural that it comes first in the list.
As an example, this is how a procurement process usually looks like together with the RFP:
- Create clear requirements in a work statement for the product or service that you are procuring.
- Develop and approve the Request for Proposal while following the RFP standards of getting great proposals and reducing the risk.
- Identify prospective vendors
- Respond to vendor questions
- Receive, evaluate, and score proposals
- Down-select vendors and conduct interviews and demos
- Create scoring workbooks for proposal evaluation
- Perform pre-contract risk assessment and due diligence on the finalist supplier
- Negotiate and award the contract
The Difference between an RFI and RFP
Since we already know what RFP means, it’s time to have a look at another procurement process that is also closely related to RFP.
The team of Procurement Tactics created an overview of all the differences between RFI & RFP you are looking for!
RFI means Request for Information and from the looks of it, it is pretty similar to RFP except for a few key statements.
Conclusion
The year 2025 brings both challenges and opportunities to the field of procurement.
The article highlights the crucial role of the Request for Proposal (RFP) process, offering a concise 7-step strategy for its effective implementation. Emphasizing transparency and fairness, the RFP process is instrumental in counteracting biases and ensuring projects are awarded to qualified entities.
The outlined steps provide a clear guide for establishing a robust RFP process, promoting cohesion within the procurement team. As organizations adopt this strategy, they equip themselves to navigate the complexities of procurement in 2025, fostering adaptability and strategic decision-making.
Frequentlyasked questions
What is RFP process?
RFP process is a series of actions that allow for the efficient use of RFPs or requests for proposals.
What is RFP?
RFP means Request for Proposals. It is a process in procurement where an announcement is made or documented towards the procurement of a supply or service.
Who does RFP?
The procurement manager is in charge of RFPs most of the time.
About the author
My name is Marijn Overvest, I’m the founder of Procurement Tactics. I have a deep passion for procurement, and I’ve upskilled over 200 procurement teams from all over the world. When I’m not working, I love running and cycling.