RFP

What it means

An RFP is a written invitation to submit a proposal, in which the buyer describes what is needed, on what terms, and how the proposals will be evaluated. The answer is a proposal, not a price list.

It differs from a public procurement tender in that the private sector version is not formally regulated - the buyer sets the rules and is therefore responsible for making the bids comparable.

An RFP differs from a simple request for a quote in leaving the solution itself open: a quote request is enough when it is clear what is being bought and only price is compared. Neither sending an RFP nor receiving a proposal creates a contract - the chosen proposal is the basis for negotiation, which often ends in a letter of intent and only then in a contract.

How it works in practice

A useful RFP describes the problem and the required outcome rather than the technical solution, so suppliers can propose a better route than the buyer knows. It states scope, dates, budget boundaries, evaluation criteria and their weights.

An NDA is signed before sensitive material goes out; after selection come a supplier audit and an agreed SLA. For large investments, a feasibility study precedes the RFP.

When a client is choosing new accounting software or an ERP, we help write the accounting requirements into the RFP: double-entry bookkeeping under Slovak rules, the VAT control statement, an export for the auditor and transfer of opening balances. Vendors like to skirt these points in their bids because they later sell them as custom work.

What to watch out for

Scoring on price alone produces bids with scope quietly left out and billed later. So price is compared against an identical brief, and what is not included is asked about explicitly.

If the buyer answers questions for only one bidder during the selection, or changes the brief for them, the bids stop being comparable. Questions and answers therefore go to everyone at once, and a changed brief means a new deadline for all; otherwise, under a contract for work, it later becomes hard to prove what exactly was offered.