Free Request for Proposal (RFP) Template

A request for proposal, or RFP, allows you to collect offers from various vendors who can provide goods or services your business needs. To identify the right vendor, you need an effective, detailed RFP so you can quickly and easily evaluate vendor capabilities.

This guide helps you understand what a request for proposal is, what you should include, how to write one, and includes a free RFP template.

Table of Contents

• What Is a Request for Proposal (RFP)?
• What Should an RFP Include?
• RFP Process
• How to Write a Request for Proposal (RFP)?
• Request for Proposal (RFP) Sample
• Reasons Why RFPs are Critical for Organizations
• Request for Proposal Best Practices
• Request for Proposal FAQs

What Is a Request for Proposal (RFP)?

An RFP is a document you create when you need to buy products or services from vendors. You’re openly announcing that you have funding available for a program or project, or to purchase products or services. Interested companies or vendors respond by placing bids for that project or those services. This form should help you gain as much information as possible about the products or services you wish to buy, so you can make an informed decision about who to enter a business contract with.

What Is an RFP Template?

You may need to produce multiple RFPs in a short amount of time. That is where RFP templates can be beneficial. An RFP template is a document that already laid out all of the sections that you need to include in your proposal. That way, all you need to do is go through and fill them in before you go live.

What Should an RFP Include?

When you put together your proposal request, there are several essential elements of an RFP that you need to have. Some of these elements include:

• Background and Overview: You need to include an overview of the project. This is where the reader will get some background information that he or she can use to place the rest of the proposal in an appropriate context. You may also want to mention why you feel the project is important.
• Project Goals: You need to include the goals of the project. How are you going to measure the success of the project? You may also want to mention the scope of the project in this section. If you have a vision for the finished product, you may want to share it in this section as well.
• Propose a Budget: How much money do you think the project is going to cost? You may have the best project in the world, but you need to give a potential budget so that people know how much they will be compensated. Give an explanation as to how you envision the budget being spent.
• The Services You Need: You probably won’t be able to complete the entire project on your own. In this section, you need to mention the services that you need. For example, if you are designing a new software program, you might need a software engineer to help you.
• The Selection and Evaluation Criteria: With a detailed overview of the services you need, it is time to dive into some of the details. Mention the specific selection and evaluation criteria you will use to determine who you will work with. What type of experience are you looking for? What type of educational credentials are you looking for?
• The Timeline of the Project: Finally, you also need to mention the timeline of the project itself. How long do you think the project is going to take? When do you want the project to be done? There might be lots of qualified people available to help you, but if they do not have availability that matches your timeline, they may want to move on.

RFP Process

Once your business has happened upon, or identified, a project that requires an RFP, you’ll need to go through the RFP process. The RFP process varies from business to business but in general, it comes down to four steps:

1. Discovery
2. Writing and sending the request for proposal
3. Evaluating and shortlisting proposals
4. Choosing a winner and creating a contract

Step 1 – Discovery

Before writing your request for proposal, you need to conduct some internal planning to make the process as effective as possible. You’ll want to start the RFP process with a discovery phrase that includes your key stakeholders to identify:

• What should go into the request? – Set project boundaries, deadlines/timelines, and how much you want to spend.
• Who should manage and oversee the RFP process? – Identify what departments or individuals should draft a solid RFP and evaluate the proposals to identify the best vendor. Choose departments or individuals that have the best knowledge of the project and the business needs.
• What could the purchasing decision affect? – Consider how the purchasing decision could affect the company’s budget, other ongoing projects, internal departments, and existing business partnerships.

You’ll want to set up a meeting with relevant stakeholders to discuss the above. You should also cover business objectives and goals and decide your expectations from the bidders and what makes the ideal bid, such as timeline, functionality, etc.

Step 2 – Writing and Sending the Request for Proposal

The second step is the writing and issuing of the request for proposal. This is the most important part of the process and needs to be well written so vendors understand the project and can provide comprehensive solutions. You can learn how to write a request for proposal here and download a template below to make the writing process easier and more efficient.

Step 3 – Evaluating and Shortlisting Proposals

As vendors send you responses, you’ll want to use the parameters you discussed with stakeholders to score each one. Eliminate the bids that fail to meet your non-negotiables and begin to identify unique selling points of vendors, and shortlist those that stand out.

Step 4 – Choosing a Winner and Creating a Contract

Once your deadline for receiving bids closes, compare the vendors you’ve shortlisted to make a decision. Check their strengths and offers against your RFP and look at previous client reviews. Contact any of the vendors if you have additional questions or think a meeting may be required before you make a decision.

Once you’ve identified two or three leading bidders, start negotiating a price and then lock in a price and arrange a contract with your final choice. Depending on the agreement you’ve decided on, you may want to use a partnership agreement or a service agreement.

How to Write a Request for Proposal (RFP)?

When you follow a structured process for writing a request for proposal, it’s much more manageable. By following the steps outlined here, you’ll be able to write a more effective RFP.

1. Gather the Requirements for Your RFP

Before you start writing, you need to know what the requirements of your RFP are. These requirements are typically:

• Scope of the project
• Project goals
• Budget
• Timeline
• Potential limitations

Identify what these requirements are before you begin drafting the proposal request because it will make writing the subsequent sections much easier.

2. Add Your Company Name and Contact Information

Your request for proposal should state who it’s for and how to get in touch with your company.

3. Provide Company Background and Portfolio

An RFP should persuade vendors to bid on your project. Give them a full picture of your company, including your history, mission, goals, target customers, sales performance, and other pertinent information that will help organizations decide if they’d like to work with you.

4. Describe the Services or Products You’re Requesting

State specifically what you’d like the vendor to do or provide. If you aren’t sure of exactly what you need, go back to step one and gather RFP requirements again.

5. Provide Project Details and Project Name

After you’ve indicated which exact products or services you require, describe the reason you require them. What will your company do with these products or services and why should vendors bother proposing? Also, give your project a name to make it easier to describe.

6. Indicate the Goal of the Project

Describe what you hope to accomplish with the products or services the vendor will provide. Are you trying to make your business run more smoothly, or expand an offering to your customers? Include these goals in the proposal request.

7. Set a Scope for the Project

List the volume of products you require or the extent of the services you’re asking for.

8. Give a Proposed Timeline and Set Milestones

Include a realistic timeline divided into chunks so vendors can easily compare it to their own schedules and determine if they’d be a good fit.

9. State When Bids Are Due

Choose a deadline for bids that gives you enough time to evaluate each one carefully.

10. Provide a Point of Contact for Your Company

Describe how proposals should be submitted. Should vendors send them to a specific person or department? Include those details in the RFP.

11. Indicate What a Proposal Must Include

Finally, include elements of a winning proposal. What should bidders include that will make it easier for you to evaluate?

The easiest way to write an RFP is to look at examples. If your company previously issued a request for a proposal, you can work from it as a template. You can also use a document builder from Legal Templates, filling in your information and project details to create an RFP.

Request for Proposal (RFP) Sample

To help you write an effective proposal request, we’ve provided a free RFP template that you can modify for your business needs:

Reasons Why RFPs are Critical for Organizations

Increased Number of Potential Bids

By putting out a formal RFP, you make it known publicly that you’re seeking particular products or services. When more potential vendors see your RFP, the number of bids you receive will increase, allowing you to make a better choice.

Encourages Competition Between Collaborators

An RFP creates a sense of competition between potential collaborators and encourages them to offer their best services and fairest rates. You end up getting high-quality work at a decent price.

Better Organization

The proposal request process is structured and when you handle it correctly, it allows for smooth communication and better planning between you and your collaborator. The stakeholders in your business can also see how the project will go and the benefit it will have for the company.

Ensure Transparency Moving Forward

In addition to providing a nice project overview, your request for proposal is also going to ensure transparency moving forward. If there is any confusion between the goals of the project, the responsibilities of the people you work with, and the deadline, you can always refer back to this document to clarify any discrepancies.

Ensure The Right People Apply for the Project

Finally, a request for proposal is important because it ensures the right people apply for the project. Even though you may want to have a lot of bids, you don’t want to spend days on end reviewing proposals from people who aren’t qualified. If you want to ensure the most qualified people apply for your project, you need to have a transparent RFP with which to work.

5 Request for Proposal Best Practices

You want to put your request for proposal in a position to be successful. There are several important best practices you need to follow. They include:

1. Be Transparent About the Goals

You need to be as transparent as possible about your goals for the project. Anyone who applies for the project will want to know whether the goals are realistic. If you are transparent, you will have a greater number of qualified parties apply for the project.

2. Give the Experts Some Flexibility

You are asking for experts to come and help you with the project. Provide them with some flexibility. Share your overall goals, but let them know that you are open to suggestions about how the project unfolds.

3. Avoid Typos and Proofreading Errors

You want to provide a professional proposal request. Make sure you proofread the proposal carefully to avoid any typos or proofreading mistakes.

4. Have Realistic Deadlines

You may have a deadline by which you want to finish the project, but it needs to be realistic. If your deadlines aren’t realistic, contractors are not going to apply to work with you.

5. Be Clear on the Budget

Everyone will want to know how much they are paid. Be clear about the budget, and if there is a compensation range, make sure you share it. Doing a bait-and-switch on the price is unethical.

Request for Proposal FAQs