Request for proposal (RFP): how to write one, with an outline template

A request for proposal (RFP) is a document a buyer sends to several suppliers describing what it needs, how to respond, and how responses will be judged. A useful RFP states the problem and requirements clearly, separates must-haves from nice-to-haves, asks every supplier for the same information in the same format, and publishes the evaluation criteria in advance. Most of the quality comes from work done before you write it: talking to the people who will use what you buy and learning what suppliers in the market can actually offer.

This page gives you an outline template and a research plan for the weeks before you issue the RFP.

When you need an RFP (and when you don't)

An RFP is worth the effort when the purchase is large or hard to reverse, several suppliers could do the work, and the right answer depends on more than price. For a simple, well-defined item where price is the main difference, a request for quotation (RFQ) is usually enough. If you are not yet sure what the market offers, start with a request for information (RFI). CIPS's procurement and supply cycle places an RFI before the formal tender, to learn suppliers' size, capabilities, financials, strengths and weaknesses.

The procurement process shows where the RFP sits among the other steps.

A worked example

Suppose a regional food distributor with one warehouse wants a warehouse management system before it opens a second site. Its operations director, IT lead and finance lead will judge the result, and it expects four or five suppliers could bid. The example is hypothetical and is used throughout the page.

Before you write: research the need and the market

Talk to the people who will use it. Ask warehouse supervisors, pickers and the finance team what goes wrong today and what they would need to see in a demo. Write each requirement as a problem to solve ("pickers need to confirm a pallet location without walking back to a terminal"), not a feature name you picked up from one vendor's website.

Learn what the market can offer. US federal rules give a useful model here. FAR 15.201 encourages early exchanges with industry, and lists techniques such as market research, one-on-one meetings with potential suppliers, draft RFPs, RFIs, pre-proposal conferences and site visits. It says the purpose is to improve understanding of the buyer's requirements and industry capabilities, so suppliers can judge whether they can meet them. A private company is not bound by these rules, but the techniques work the same way.

Talk to people who have bought or run this kind of system. Operations managers at other distributors, or people who implemented a warehouse system at a previous employer, can tell you which requirements mattered in practice, which ones nobody used, and what implementation looked like. This is the research vendors cannot give you, because every vendor's answer is shaped by what it sells.

Share information fairly. FAR 15.201 also says that once specific information needed to prepare proposals is given to one potential supplier, it must be made available publicly. The same habit protects a private process from bias and complaints.

An RFP outline template

The US federal uniform contract format is one well-tested structure. It separates the description or statement of work (Section C), instructions to offerors (Section L) and evaluation factors for award (Section M), among others. A private-sector RFP can be much shorter, but those three parts are worth keeping distinct. Here is an outline you can adapt:

1. Introduction and background. Who you are, why you are buying, and what happens after selection.
2. Scope and statement of work. The problem, the current situation, and what the supplier would deliver. In the example: one warehouse live in the first phase, the second site in the next.
3. Requirements. Split into must-have and nice-to-have. CIPS advises distinguishing requirements from preferences in the specification. Number each requirement so suppliers can answer line by line.
4. Technical and security questions. Integrations, data location, access control, uptime commitments.
5. Implementation and support. Plan, timeline, who does what, training, support hours.
6. Pricing format. A table every supplier fills in the same way, including one-time, recurring and optional costs over a fixed period, such as three years.
7. Supplier information. Company background, financial stability, relevant customers and references.
8. Instructions for responding. Format, page limits, where to send questions, the deadline for questions, and the submission deadline.
9. Evaluation criteria. The factors you will score and their relative weight.
10. Timeline. Issue date, question deadline, submission date, demos, decision date.
11. Terms. Confidentiality, your right to reject all proposals, and whether your standard contract applies.

Write the evaluation criteria before you read any proposal

Decide the factors and weights first and publish them in the RFP. In US federal buying, FAR 15.305 requires agencies to evaluate proposals solely on the factors and subfactors in the solicitation and allows any rating method, including numerical weights. Private buyers are not bound by it, but the discipline stops the loudest person in the room from changing the rules after seeing the bids.

A hypothetical weighting for the example:

The weights add up to 100%. Yours will differ; the point is to agree on them with the operations, IT and finance leads before proposals arrive. Vendor selection shows how to score against a table like this and run reference calls.

Common RFP mistakes

• Copying one vendor's feature list into the requirements. Suppliers will notice, and you will get proposals shaped around one product.
• No must-have and nice-to-have split. Every supplier says yes to everything, and you cannot tell them apart.
• Pricing in free text. You cannot compare totals if each supplier structures pricing differently.
• Too many suppliers. Each proposal takes real time to read well. An RFI or a short research phase can narrow the list first.
• Treating suppliers unevenly. CIPS's evaluation guidance stresses the same deadline for everyone, recorded clarifications, and notifying all bidders of any major change.

Your next step

Before drafting, list the three people inside your company whose requirements matter most and the two or three outside people who have run a similar system. Talk to them first.

Instant Expert can find people outside your network who match a description, such as "operations managers who implemented a warehouse management system at a food distributor." You review who it finds, it sends your invitations, and you pay only for calls that get booked. The directory pages for operations professionals in food distribution and procurement professionals in food distribution are one place to start. How to prepare for an expert interview covers what to ask.