An RFP or Request for Proposal is a formal invitation from a buyer to a vendor to submit an offer on a solution to a problem or to sell goods or services. It is a procurement process in which the judgment of the vendor s experience, the vendor's qualifications, and the proposed solution may take precedence over price. Request for vendors' proposed solutions. Criteria the buyer will use in vendors' proposals evaluation. Terms and conditions by which the vendor will provide the service.
Vendors submit proposals against RFPs.
A proposal is a formal offer by a vendor to provide the buyer with goods or services. It is not always necessary to use an RFP process for a project. Cost is not the only selection factor and long term quality plays a role. There are economic development issues involved. The process of selecting the vendor is rather complex.