Request For Proposal - RFP

AAA

DEFINITION of 'Request For Proposal - RFP'

A type of bidding solicitation in which a company or organization announces that funding is available for a particular project or program, and companies can place bids for the project's completion. The Request For Proposal (RFP) outlines the bidding process and contract terms, and provides guidance on how the bid should be formatted and presented. A RFP is typically open to a wide range of bidders, creating open competition between companies looking for work.

INVESTOPEDIA EXPLAINS 'Request For Proposal - RFP'

A Request For Proposal for a specific program may require the company to review the bids not only examine their feasibility , but also the health of the bidding company and the ability of the bidder to actually do what is proposed. The RFP may provide detailed information on the project or program, but can leave leeway for the bidder to fill in the blanks with how the project would be completed or program run.

RELATED TERMS
  1. Request For Application - RFA

    A type of solicitation notice in which an organization announces ...
  2. Contractor Fraud

    Illegal business practices committed by firms hired to reform, ...
  3. Bilateral Contract

    A bilateral contract is a reciprocal arrangement between two ...
  4. Independent Contractor

    A self-employed taxpayer that controls his or her own employment ...
  5. Bid

    1. An offer made by an investor, a trader or a dealer to buy ...
  6. TSA Pre

    This program allows travelers deemed low-risk by the Transportation ...
Related Articles
  1. Personal Finance

    How To Pick The Right Lawyer

    Find out what factors to consider before hiring an attorney.
  2. Retirement

    Be Your Own Boss By Freelancing

    Learn the pros and cons before you bid adieu to sales meetings and power suits forever.
  3. Bonds & Fixed Income

    How Diaspora Bonds Work

    Developing and emerging nations with sizable populations living overseas are using diaspora bonds to raise financing from emigrants.
  4. Investing Basics

    How are arm's-length transactions determined by law?

    Determine if transactions are conducted at arm's length by checking if the parties to a contract are independent and transact on an equal footing.
  5. Investing Basics

    Are arm's length transactions always better than transactions not at arm's length?

    Transactions not at arm's length have real tax and other consequences for individuals and businesses, but they are not necessarily always worse.
  6. Investing Basics

    When does it makes sense for a company to pursue vertical integration?

    Discover how vertical integration allows firms to take more control over production costs, the quality of its products and flow of information in the process.
  7. Professionals

    Understanding Interpersonal Skills

    Interpersonal skills are the social skills people use to interact effectively with other people. A lack of good interpersonal skills may lead to unsuccessful personal relationships, as well as ...
  8. Professionals

    What are the main communication points between a CFO and a CEO?

    Explore key communication points between CEOs and CFOs. Learn how each of these officers has a fiduciary duty to stockholders, employees and the public.
  9. Economics

    The Economic Impact of Better US-Cuba Relations

    We examine what the normalization of relations between the US and Cuba will mean for the two countries' economies.
  10. Entrepreneurship

    How does a customer base dictate goodwill?

    Find out how a customer base dictates the value of the goodwill by providing a ready market for its products and spreading the word about the firm.

You May Also Like

Hot Definitions
  1. Treasury Bond - T-Bond

    A marketable, fixed-interest U.S. government debt security with a maturity of more than 10 years. Treasury bonds make interest ...
  2. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  3. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
  4. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  5. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  6. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
Trading Center