What Is the RFP Process? A Step-by-Step Guide with Checklist

A Request for Proposal (RFP) is a core tool in competitive procurement, designed to invite vendors to propose creative solutions for a business or public need. RFPs enable open and fair competition, helping organizations get the best value instead of just the lowest price. They also promote transparency and objectivity in sourcing decisions, which are essential cornerstones of an effective procurement process.

In this guide, we’ll demystify the RFP process for procurement professionals, vendors, and business owners. We’ll start with a clear definition of the RFP process and when to use it, then walk through five expert steps to conduct an RFP. We have also included a practical RFP process checklist. This structured approach will ensure you have the necessary information to handle your RFP process with professionalism, fairness, and better decision-making.

What is the Request for Proposal (RFP) Process?

In procurement, a Request for Proposal (RFP) is a formal competitive bidding process used when an organization needs a solution to a problem but is looking for more than the lowest price. According to the National Institute of Governmental Purchasing (NIGP), an RFP is “the document used to solicit proposals from potential providers for goods and services.” In an RFP, price is usually not the primary factor, and it allows for negotiation of terms, including price, before award.

From an industry perspective, RFPs are often used for complex or technical projects where requirements are flexible or outcome-based. For instance, a university procurement guide notes that an RFP “is designed to illuminate new ideas and plans to help accomplish a goal.” In such cases, proposals are judged on multiple factors, not just cost.

This differs from an Invitation for Bid (IFB) or Request for Quotation (RFQ), where specifications are fixed and the award typically goes to the lowest qualified bidder. Public sector organizations also rely on RFPs to ensure transparency and accountability in spending, especially when taxpayer funds are involved.

When to Use an Request for Proposal (RFP)

An RFP is the right choice when:

• You have a defined problem or need, but vendors may approach it in different ways.
  
• Success depends on innovation, expertise, and methodology, not just the cheapest option.
  
• The project is complex, technical, or strategic (e.g., IT systems, marketing campaigns, consulting services).
  
• You want the flexibility to evaluate overall value and negotiate scope or terms before awarding a contract.

When to Use an RFQ (or IFB)

A Request for Quotation (RFQ) or Invitation for Bid (IFB) is best suited when:

• The purchase is straightforward, and the specifications are clear.
  
• The main objective is to secure competitive pricing for standardized goods or services.
  
• Minimal vendor creativity is needed; you require delivery of a specific product or service as defined.
  
• The process must be efficient, fast, and primarily transactional.

When to Use an RFI

A Request for Information (RFI) is most useful in the early planning stage when:

• You need to understand market options before writing an RFP or RFQ.
  
• Supplier input can help you shape requirements, budgets, or timelines.
  
• You are exploring emerging solutions, technologies, or capabilities.
  
• The goal is to gather insights and shortlist potential vendors for a future procurement process.

Why This Matters

By choosing the right approach, RFP, RFQ, or RFI, organizations improve both competitiveness and outcomes. An RFP is ideal for evaluating value and innovation, an RFQ ensures efficiency for well-defined purchases, and an RFI builds the foundation for stronger procurement strategies.

The lowest bid does not always represent the best value. An RFP allows you to weigh expertise, compliance, and innovation things that can’t always be quantified by price alone.

Yves Laffiché

Procurement Consultant

How to Conduct an RFP Process – 5 Expert Steps

Running a successful RFP process requires careful planning and execution, much like a project. It’s crucial to approach each stage methodically and with the end goal in mind. Below are five expert-recommended steps, each with practical insights from industry best practices, to conduct an RFP process effectively. These steps will make your process clear, collaborative, and organized, increasing your chances of attracting high-quality proposals and selecting the right vendor.

1. Identify the Need and Scope Clearly

Every RFP should begin with a well-defined need and scope. This means engaging in upfront planning to understand what you need to procure and why. Start by identifying the business problem or requirement and ensuring it’s justified and approved internally (including budget approval). It’s wise to involve key stakeholders and end-users at this stage, those who will use or be impacted by the product/service, to capture their requirements and pain points. Early stakeholder engagement helps align the RFP with actual business goals and prevents disconnects later on.

Before drafting anything, gather all relevant information about the scope: technical requirements, performance expectations, and any constraints (such as timeline or regulatory constraints). Be as specific as possible about the outcomes you seek. If you’re unsure about what solutions or innovations the market can offer, consider issuing a Request for Information (RFI) to vendors or holding informal market consultations.

This pre-RFP step can provide valuable insights into feasible approaches and realistic budgets. Procurement guidelines suggest defining your business, operational, and strategic requirements thoroughly prior to RFP development to know exactly what success looks like. This may include researching past procurements or current market offerings. By clarifying your needs up front and securing internal consensus (scope sign-off and budget), you set a strong foundation for the RFP.

It ensures that when you move to the next step, you’re not writing in a vacuum but rather with clear objectives that have organizational buy-in.

2. Draft a Comprehensive RFP Document

With a clear scope in hand, the next step is to create the RFP document. This is where you translate your needs into a formal solicitation. An effective RFP document is comprehensive and precise. It should outline all important details so vendors understand exactly what is required and how their proposals will be evaluated. At a minimum, an RFP should include a background of the project or organization. It should also have a detailed description of the work or product needed, including specifications, requirements, and deliverables. In addition, it should outline the format in which proposals should be submitted and the criteria you will use to evaluate responses.

Spend time crafting unambiguous requirements. Vague or overly broad RFPs can lead to confusion and wildly differing proposals. Industry veterans warn that an RFP lacking a clear scope of services or clear objectives is a recipe for trouble, as it frustrates vendors and makes it hard to compare proposals. Therefore, be explicit about what vendors must address in their proposals (for example, technical specs, implementation plan, support, etc.), and any mandatory qualifications or experience.

It’s equally important to spell out your evaluation criteria and process in the RFP. Let vendors know the weight of each factor (e.g., cost vs technical merit) or at least what factors will matter. Defining these criteria in writing adds transparency and signals to vendors how to tailor their proposals. For instance, you might indicate that the proposal will be evaluated on the understanding of requirements, the proposed methodology, the team qualifications, the references, and the price. Each category was assigned a percentage or point value.

As you draft, ensure the document is organized and free of unnecessary jargon. Include a timeline with the proposal due date, any interview dates, and estimated award dates. Also, provide instructions for how vendors can ask questions. Providing a template or structured format for responses can also help make it easier for you to compare submissions apples-to-apples. Before finalizing the RFP, review it internally: have subject matter experts, end-users, and procurement/legal colleagues read it.

They can catch omissions or clarify ambiguities. Many organizations, for example, route the draft RFP to a procurement officer or legal counsel for approval before release. This internal review ensures the RFP is thorough, compliant with policies, and realistically achievable. Taking the time to write a high-quality RFP document will save you headaches later and will encourage vendors to put their best foot forward.

3. Distribute the RFP and Engage with Potential Vendors

Once your RFP document is ready, it’s time to release it to the vendor community. Identify how you will notify suppliers. This could be by publishing on an e-procurement or government tender portal, sending directly to a list of qualified vendors, or both. In government procurement, public advertisement is often required to ensure open competition. For instance, a purchasing department may post the RFP on an official site and also email it to vendors who have been pre-identified as relevant to the project. Make sure the announcement is clear about how vendors obtain the RFP, the deadlines, and where to submit proposals.

During this period, vendor engagement is crucial. Be prepared to field questions from prospective proposers, because a well-informed vendor pool will yield better proposals. It’s considered best practice to designate a single point of contact (one email or portal) for all RFP inquiries and clarifications, and to communicate answers equally to all vendors. This prevents any vendor from getting an unfair advantage and maintains transparency. You might compile all Q&A into an addendum that is sent to every vendor who has the RFP, so everyone is on the same page. Promptly addressing vendor questions or requests for clarification not only improves understanding but also builds goodwill.

In some cases, hosting a pre-proposal conference or briefing can be extremely beneficial. This is essentially a meeting (virtual or in-person) with all interested vendors to go over the RFP and answer questions live. It ensures that everyone hears the same information and can clarify complex requirements. For complex projects, e.g., implementing a new IT system, a pre-proposal meeting can also help vendors understand the context better by maybe providing a site walk-through or demonstrating the current setup. Just be sure to invite all potential bidders and afterwards distribute any new information that came up to all, so no one is left out.

Throughout the RFP open period, manage communications professionally: log all questions, issue formal addenda for any changes, and enforce a cutoff date for inquiries. By actively engaging with vendors and guiding them during the RFP period, you increase the chances of receiving compliant and well-tailored proposals. Remember, the goal is to encourage quality proposals through fair and open interaction.

Understanding the RFP process as a seller is critical to your success. Each stage is an opportunity to position your company, connect with the customer, and ultimately increase your chances of winning the contract.

Richard Roy

Senior Proposal Manager, Blue Cross and Blue Shield of Alabama

4. Evaluate Proposals Systematically

When the submission deadline passes, the focus shifts to evaluating the proposals in a structured, unbiased manner. A common mistake at this stage is to approach evaluations ad hoc; instead, you should follow a pre-defined evaluation plan that was ideally established before proposals arrived. Start by ensuring all proposals are handled confidentially and that evaluators work independently (at least initially) to avoid undue influence.

Many organizations form an evaluation committee of stakeholders or experts to score proposals against the criteria. Each member might read and score proposals individually, then meet as a group to discuss and reach consensus scores. Using a scoring sheet or matrix aligned with the RFP’s criteria is highly recommended. This provides a standardized approach to compare vendors on key factors like solution quality, experience, cost, and other relevant criteria, and it documents the rationale for decisions.

Evaluating each proposal against the RFP criteria prevents extraneous factors or personal biases from creeping in. If the RFP stated that the technical approach is 50% and the price 30%, for example, stick to that framework. This structured evaluation ensures fairness and objectivity. It’s also a good practice to have procurement officials or a chairperson oversee the process to ensure rules are followed. This can include disqualifying any proposal that did not meet mandatory requirements or ensuring consistent scoring. Impartiality is critical: as one procurement guideline notes, the evaluation must be comprehensive, fair, and impartial to withstand scrutiny.

During evaluations, you may find it useful to conduct additional due diligence on top-ranked proposals. This can include vendor interviews or presentations, requesting clarifications in writing, checking vendor references, and even site visits or product demonstrations if applicable. These steps help verify the claims in the proposals. For example, it’s common to contact the references that vendors provided to ask about past performance.

You’ll also want to assess any potential risks, such as a vendor’s financial stability or capacity to deliver. The RFP process allows you to examine factors beyond the proposal document. This can include verifying the vendor’s compliance history or asking for a best and final offer in a close contest. By the end of this stage, you should score or rank proposals and have documented reasons for those rankings. A well-documented evaluation not only helps in justifying your selection internally or in audits, but it is also invaluable if you need to debrief unsuccessful vendors or face any protests. Done correctly, this systematic evaluation will identify the proposal that offers the best value solution aligned with your requirements.

5. Select and Onboard the Chosen Vendor

After careful evaluation, you’ll arrive at the selection of a winning proposal (or a short list for negotiation). Now, communicate the award decision according to your process rules. Many organizations issue an intent-to-award notice and also formally notify the vendors who were not selected. Once a winner is chosen, there’s often a phase of negotiation and contracting with that vendor.

In an RFP process, unlike a sealed bid, you generally have the latitude to negotiate the final terms and pricing with the top-ranked proposer before signing a contract. Make sure to iron out any remaining points on scope, deliverables, timeline, and payment terms. This results in a mutually understood and agreeable contract. It’s prudent to involve legal or procurement contract specialists to ensure all standard clauses are properly included. These clauses can include performance guarantees, termination clauses, and other essential provisions.

Selecting a vendor is not the end of the journey; how you onboard and manage the vendor post-award will determine if the project succeeds. Start with a thorough kickoff meeting soon after contract signing or even as part of the contracting process. In the kickoff, both your team and the vendor’s team should come together to review the contract, project plan, and expectations in detail.

This meeting is crucial to ensure everyone is on the same page regarding the scope of work, roles and responsibilities, key milestones, and reporting or communication protocols. It’s an opportunity to set the tone for the partnership and clarify any ambiguities before work begins. Additionally, establish the governance and performance measures. For example, set Key Performance Indicators (KPIs) or service level agreements against which the vendor will be measured. Agree on how progress will be tracked and issues handled. All these steps make sure that the vendor is properly onboarded into your operation.

Internally, also assign a contract manager or project manager on your side who will be the point of contact for the vendor going forward. This person will oversee that the vendor’s deliverables meet the RFP requirements and will manage the relationship. Remember that a lot of RFP failures happen after the contract is awarded due to poor contract management or a lack of follow-up.

Avoid that by actively managing the vendor: monitor their performance against the agreed KPIs, hold regular check-ins, and foster open communication. If required in your context, you may also debrief unsuccessful bidders. This is a common courtesy and sometimes a legal requirement in the public sector. Debriefings, when done, should explain how they were evaluated and maintain goodwill for future opportunities. By diligently selecting and onboarding the vendor, you set the stage for a successful project execution and build a strong vendor relationship from day one.

Request for Proposal (RFP) Process Checklist

To put the above steps into action, use this RFP process checklist as a handy guide. It distills the key tasks and best practices at each phase of the RFP process, from initial planning through contract award and onboarding. Reviewing this list before and during your RFP will help ensure nothing important slips through the cracks:

1. Identify the Need and Scope Clearly

• Define the business problem or requirement in writing.
  
• Confirm budget approval and internal alignment.
• Involve key stakeholders and end-users to capture requirements and pain points.
• Research past procurements or current market offerings.
• Identify constraints (timeline, regulatory, or technical).
• If uncertain, issue an RFI or conduct market consultations.
  

Resources to have: Budget approval, stakeholder input, and requirements document.

2. Draft a Comprehensive RFP Document

• Write a clear background and project description.
• Document technical requirements, deliverables, and scope of work.
• Define evaluation criteria and their weightings (e.g., cost vs. technical merit).
• Provide a proposal format/template for vendors.
• Set a clear timeline (submission deadline, interviews, award dates).
• Include instructions for vendor questions and clarifications.
• Review draft internally with procurement/legal and subject matter experts.
  

Resources to have: Proposal template, evaluation criteria matrix, and legal/procurement review.

3. Distribute the RFP and Engage with Vendors

• Publish or send RFP to qualified vendors (consider diverse/local suppliers).
• Ensure clear communication of deadlines and the submission process.
• Designate a single point of contact for vendor inquiries.
• Respond to vendor questions with equal access to information (Q&A addendum).
• If applicable, hold a pre-proposal conference or site visit.
• Issue addenda for any changes and extend deadlines if major changes occur.

Resources to have: Vendor distribution list, Q&A log, and addendum template.

4. Evaluate Proposals Systematically

• Record all received proposals (disqualify late submissions).
• Form an evaluation committee with subject matter experts and end-users.
• Train evaluators on the scoring process, ethics, and conflict of interest rules.
• Score proposals using a standardized evaluation matrix.
• Hold a committee meeting to reach a consensus on rankings.
• Conduct due diligence on top vendors (reference checks, risk assessment).
• If needed, request vendor clarifications, presentations, or site visits.
  

Resources to have: Evaluation score sheets, evaluation criteria matrix, reference check template.

5. Select and Onboard the Chosen Vendor

• Issue an award notice to the winning vendor and send regret letters to others.
• Negotiate and finalize contract terms (scope, deliverables, timeline, payment).
• Involve legal/procurement specialists in contract review.
• Conduct a kickoff meeting with the vendor and the project team.
• Define KPIs/service levels and set reporting structure.
• Assign an internal contract/project manager.
• Schedule regular performance check-ins and track progress.
• Debrief unsuccessful vendors (if required or helpful).
  

Resources to have: Contract template, KPI framework, and contract manager assigned.

By following this checklist, you can feel confident that you’ve addressed the critical components of the RFP process, from preparation to contract kickoff. It serves as a safeguard against common oversights and helps drive a smooth, efficient procurement.

Before you even think about responding to an RFP, make sure you truly understand the customer’s problem. Too many vendors jump straight into pitching solutions without confirming if they’re solving the right challenge.

Eric Olson

CEO, Consensus

Common Mistakes to Avoid in RFPs

Even with a good process in place, some pitfalls can undermine an RFP’s effectiveness. Below are some common mistakes in RFP processes and how to avoid them:

• Overly Vague Requirements: An RFP that lacks clarity in its scope or requirements will yield poor results. Vague RFPs confuse vendors and lead to proposals that are hard to compare. In practice, we’ve seen RFPs fail because they did not clearly state the project’s objectives or needed services. Ensure your RFP clearly defines the desired outcomes and criteria. This helps vendors provide targeted solutions and prevents misinterpretation.
  
• Not Involving End-Users or Stakeholders Early: Crafting an RFP in a silo without the input of risk management is a frequent mistake. For instance, only done by the procurement department without input from technical experts or the actual users. This can result in selecting a solution that doesn’t meet the organization’s needs. The lesson is to involve the relevant subject matter experts and stakeholders in defining requirements and in evaluating proposals. Their insights will improve the RFP content and help choose a vendor that’s truly a good fit.
  
• Focusing Only on Price: While cost is important, an overemphasis on price at the expense of quality or value is risky. Awarding solely on the lowest bid can backfire if the chosen vendor lacks capability or if their solution doesn’t meet your performance needs. One real-world pitfall example: an organization weighed price so heavily that they ignored qualitative differences, ending up with a cheaper but inferior solution. Avoid this by using a balanced evaluation where technical and quality factors have significant weight. RFPs are intended to secure the best value, not just the lowest cost.
  
• Poor Post-Award Follow-Up: The RFP process doesn’t end with selecting a vendor; failing to properly manage the vendor and contract after award is a major mistake. Neglecting post-award contract management can lead to missed milestones, scope creep, or vendors underperforming without correction. To avoid this, ensure there is a clear plan for contract administration. Hold a kickoff meeting and monitor vendor performance against the agreed KPIs. Maintain regular communication to keep the project on track. If issues arise, address them promptly via the contract’s governance mechanisms. Remember, the value promised in the proposal must be delivered, and that requires active oversight after the ink is dry.
  

By being mindful of these common pitfalls and taking the proactive steps we’ve outlined to prevent them, you can greatly increase the success rate of your RFP initiatives. In summary, clarity, stakeholder engagement, balanced evaluation, and diligent contract management are your best defenses against these mistakes.

Conclusion

The RFP process, when executed correctly, is a powerful means to achieve competitive, transparent, and well-informed procurement decisions. We began with a solid definition: an RFP process is not just a bid collection, but a strategic solicitation of solutions where quality and value matter as much as price. We then detailed a step-by-step approach from clearly identifying needs, through meticulous RFP drafting, fair distribution and vendor Q&A, objective evaluation, and finally through to vendor selection and onboarding. The provided checklist translates these steps into actionable to-dos, ensuring you cover everything from pre-RFP planning to post-award management.

The key takeaway for any procurement professional or business owner is that an RFP is as much about the process as the document itself. A structured process brings discipline: it forces you to clarify what you want, communicate it consistently, and evaluate choices systematically. This in turn yields better proposals and, ultimately, a better contracting outcome. Moreover, running an RFP with rigor and transparency builds credibility with vendors and stakeholders. Vendors are more likely to invest effort in responding when they see a well-run process, and internal stakeholders gain confidence that the selection will be fair and optimal.