The official business definition of a Request for Proposal (RFP) or Request for Quotation (RFQ) is a formal document that outlines the requirements of a project or purchase and invites suppliers to submit bids for the work. An RFP is typically used when a company is looking for a complex solution to a problem or a large-scale purchase. An RFQ is typically used when a company is looking for a simple solution to a problem or a small-scale purchase. Both documents are used to solicit bids from suppliers and provide the necessary information for them to submit a competitive bid. The document outlines the scope of the project, the timeline, the budget, and any other pertinent information that suppliers need to know in order to submit a competitive bid. The document also outlines the evaluation criteria that will be used to evaluate the bids and select the winning supplier.
