Writing an RFP helps companies search for the right vendor for a project. It’s an essential process that organizes all the details in one place. Vendors read these RFPs and pitch themselves as the best fit for the job.
A request for proposal (RFP) is a document that outlines all the requirements for a project or service.
A successful RFP provides the information necessary to attract the perfect vendor. Creating an RFP incorrectly can cause an influx of submissions from unqualified respondents.
Some companies use RFP software to automate the way they create and monitor their RFPs. RFP solutions offer sample templates, generated quotes, organized RFP libraries, process analytics, and submission of proposal comparison tools.
RFP writers can use this software to determine which vendor is the best fit for them. Vendors use this software to respond to RFPs, collaborate with other companies, and keep track of communications.
A lot of elements go into creating a request for proposal that will not only get a response but attract the best partnership for your project. Companies may create RFPs that look different, but any RFP template will at least include the following seven elements.
An RFP means nothing unless the correct information is presented from the very beginning. A project’s background lays down the framework for potential project collaborators to understand who you are and what you need.
At this beginning stage, the RFP writer includes the full company name, owner, history, and the goods or services they offer. They will go on to explain a bit about the industry, project name, and why they are writing the RFP.
The background section also consists of the company’s mission and the overall vision for the project at hand.
In this goal-setting section, the company goes into deeper detail about the project and what they hope to accomplish with it. They also describe what they envision as the ideal vendor.
The company’s hope is that vendors will read this section and determine if they are the right fit for the project based on how well they can achieve the goals outlined in the RFP.
This section outlines all of the specific deliverables and expectations of the vendor. While the goals section describes what the company wants to accomplish, the scope of work describes what the vendor needs to accomplish.
At times, this section may even have blueprints or schematics with specific location measurements so the reader can understand the physical size and scope of the project.
The timeline of a project is essential to an RFP. Adding this element helps potential vendors keep in mind your time constraints as they read your RFP.
The project timeline should follow the scope of work and consist of detailed information about hard and soft deadlines and which areas may be more flexible. Companies may also describe the timeframe for responding and selecting the right vendor in this section.
To find the right vendor, you have to know what success will look like for the project. This means success metrics must be outlined within the RFP. Providing these success metrics and key performance indicators (KPIs) helps potential vendors understand what you hope to achieve in the best-case scenario.
In this part of your RFP, tell vendors if you foresee any potential issues they may encounter during the project or service. Let them know if you may need to put the project on hold if you’re only providing limited resources or any other possible roadblocks.
Including this information helps vendors know exactly what they are getting themselves into. The more detail and honesty you give from your end, the better responses you’ll receive.
Finding the perfect vendor comes at a price. Supplying budget tracking details helps readers determine whether they are the right fit for the project. This transparency also saves you time by only attracting vendors who can provide the necessary services for the right price.
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Once you understand everything that goes into an RFP, you’re ready to start your first draft! The steps below outline how to build an RFP from the ground up.
A successful RFP process begins far before the RFP draft is written. Companies must prepare a lot of information in advance to collect the details necessary for an RFP.
This preparation includes discussing the project's goals, the budget, the timeline, and any other constraints or preferences. All decision-makers and stakeholders should be brought into these discussions so all the information added to the RFP is accurate.
It’s essential to give potential vendors background information so they are aware of the company history. Background information can include any relevant past projects. You’ll also want to write about why your company is passionate about the current project, what success metrics you hope to achieve, and any other points you think a vendor should know.
Not providing the right background can mislead vendors regarding the company’s goals, leading to miscommunications down the road.
The most important part of an RFP is the project description. It’s the first impression that will either grab the interest of a vendor who can fulfill the main goal or deter a vendor who knows they’re not the right fit.
The project overview should describe the big picture. What are the pain points? What milestones are you trying to achieve? What does the timeline look like? It gives vendors a general idea of what you are looking for and why.
Once you have created a general description, you can go into more detail about the scope of the project and what exact services may be needed throughout. When it comes to this area of the RFP, less is less, and more is not enough.
Get as specific as possible with the project goals and needs. This will help vendors determine just how suitable they are for the service.
For example, suppose you mention in the overview that the project should be done in 3 months. In this detailed area, you may want to go into the specifics of what you hope to see achieved every week of the process.
Supplying extensive, honest budget information continues to attract the right vendors for the project. If the budget is unknown or still up for discussion, let the vendor know. You can even mention if you’re open to opinions about how much the project should cost.
As important as it is to describe what you hope to achieve, it’s also critical to mention any potential issues you can foresee.
Of course, things happen and not everything can be predicted. But if there are pending roadblocks that you know of, make sure to provide the details so vendors know what to expect. Not doing so may cause more significant roadblocks during the project and frustration from the vendor.
If you have any specific deliverables for the respondents, make sure to add them! Some of that information may include work portfolios, case studies, and references from previous clients. You can even request a rough workflow plan of the vendor’s plans to tackle the project.
It’s also imperative that you explain precisely how you would like to receive the RFP responses. This includes where you would like them sent and what format the vendors should use. A due date is crucial so vendors know when you need the response.
An RFP document won’t be beneficial if vendors don’t respond. Make sure to include all contact information like emails and phone numbers so potential vendors can reach out if they have any questions or concerns regarding the RFP.
The contact information should be for either a project manager or whoever is overseeing the project.
Many companies may not consider including evaluation criteria in their RFP. This is probably because it’s arguably the most difficult part for a team to agree on.
Are you looking for vendors who hold specific certifications? Are you hoping to find service providers who can multitask several complex projects?
Telling vendors exactly how you plan to choose the right fit gives them more insight into whether they can meet that criteria. This will hopefully finetune the submissions you receive.
Examples of evaluation criteria:
G2’s Team Buying Tool helps you iron out the details of evaluation criteria and identify which software fulfills your company’s needs.
It can be beneficial to include any questions you have regarding the project within the RFP. Wondering how much vendors think the project will really cost? Want to know if everything can be done in 4 months instead of 6? Ask these questions upfront in the RFP. You may just find the perfect vendor who has all the answers you need.
After all that, you may be wondering if creating an RFP is the right thing for you and your business.
Not every project warrants an RFP, but some projects might need requests to be sent out in order to be successful. These are complex projects that require a certain set of skills to complete. The process helps to narrow down and compare vendors objectively.
An RFP gives companies the opportunity for the right vendor to create a strong proposal. Like anything else, there are pros and cons to going through the RFP process.
Companies should keep these pros and cons in mind as they decide whether to create an RFP for their project.
There are so many benefits to methodically planning for the RFP process. A successful RFP not only helps you find the perfect vendor but improves the way the entire project is done.
While there are so many benefits to a successful RFP, there are challenges a company might face as they work through the process.
Companies should keep in mind a couple of things as they create and distribute their RFP. These best practices will help them prioritize the right elements and start their RFP journey right. There's no such thing as "too much information".
When it comes to RFPs, the more information provided in advance, the better. As you give more information, vendors who don’t think they can provide the service you need will be deterred, while potential vendors fit for the job will be even more interested because they know they can do what you are looking for.
To build the right list of project requirements, make sure you have the right people steering the ship. Whoever is making key decisions regarding the project at hand should have a say on what is included in the RFP.
No one tool can do it all. When it comes to an RFP, make sure the most important things are addressed. Creating this prioritization also makes it easier to rate vendors once responses are received.
While it is important to remain flexible, companies should also ensure that they are honest about which needs and requirements are fixed in place. Where you can budge, say you can budge. Where you cannot, ensure vendors know that you cannot.
This transparency will make it even more certain that the vendors submitting responses feel up to the job.
When looking for the right vendor, communication is key. Be honest about any aspects of the projects that raise questions and concerns for you. The right vendor will be able to not only conduct the service successfully but guide you throughout the process.
When creating an RFP, you have the option to send it out to a specific group of vendors. After conducting thorough research, you may come across certain vendors that you think would be a good fit. Consider sending your RFP directly to these vendors.
G2’s Team Buying Tool makes it easier to identify those certain vendors that are the best fit for the job. Collaborate with your buying team to gather requirements, prioritize needs, create a vendor shortlist, and evaluate the vendor products – all in one place, all for free!
Once your RFP is out there, the submissions come rolling in. During the selection process, keep in mind all of the evaluation criteria you set.
Pay close attention to the responses and what vendors can bring to the table. If you’re stuck on some vendors, reach out with any questions you may have to clear up which one is the best fit.
If you create a comprehensive evaluation plan in advance of receiving submissions, it can make the decision process a lot smoother. Once vendor responses come in, use your project team and their professional opinions to determine which respondent meets all the requirements.
If more information is needed, consider reaching out to vendors to request a demo or ask additional questions. When in doubt, utilize public forums to gather peer feedback regarding a vendor and their experiences.
When in doubt, consider using a request-for-proposal template to help you along the way. An RFP sample template can help ensure that all the correct information is provided without spending too much time and money making it perfect.
Some companies even offer vendor RFP response templates, so all responses received have the same necessary data.
Admittedly, a template can’t do everything. This is the beauty of G2’s Team Buying Tool.
Creating a dynamic RFP helps set your project apart. This tool automates the process and makes it easier for you and the vendor.
Ok, maybe writing an RFP isn't a party, but it sure is easy, huh? Learning about the elements and following a step-by-step guide makes the whole process a lot more simple. Downloading a free and simple RFP template makes it a piece of cake!
The perfect template sends you in the right direction. G2’s Team Buying Tool helps you collaborate and organize resources efficiently, so you spend less time drafting and more time finding the ideal vendor to complete your project your way.
On the receiving end of a request for proposal? Find out how to craft the most effective RFP response .
Alexandra Vazquez is a Senior Content Marketing Specialist at G2. She received her Business Administration degree from Florida International University and is a published playwright. Alexandra's expertise lies in writing for the Supply Chain and Commerce personas, with articles focusing on topics such as demand planning, inventory management, consumer behavior, and business forecasting. In her spare time, she enjoys collecting board games, playing karaoke, and watching trashy reality TV.
