Request for proposal defined - An RFP is a formal request for businesses to submit their propsal to provide their products or services to the interested party. Normally, a request for proposal is offered by businesses or government agencies to seek the best bid from suppliers so that they can evaluate which to choose to do business with for any specific project that they require. An RFP is usually tendered for big projects or big purchases and will include the criteria for choosing a vendor. The criteria could include factors such as budget, timeline, and technical requirements.

Businesses that respond to a Request for proposal do so in a formal written report that details the products or services that they can provide, at what price they can provide them, their track record and experience with the product or service, and their timeline for providing the specified products or services.

A response to a request for proposal is quite similar to a sales pitch, be it a very formal sales pitch. It is a way to promote a business, while giving a background on the business, a history, credentials, and features and benefits of the business and it's products or services.

Variations of an RFP include a request for quote (RFQ) where the selection criteria is usually based on which vendor can provide the product or service at the best price and a request for information (RFI), which is usually an exploratory request from vendors of a product or service to see if there is any potential to do business in the future.