A request for proposal (RFP) is a form of reverse auction that solicits a business proposal by an organisation interested in the procurement of a service or product from potential suppliers.
[citation needed] Unlike invitations to tender, which award contracts based upon the price and quality of the tender, RFPs allow suppliers more flexibility in proposing an original service or product in alignment with a company's needs.
[2] When an RFP is made after negotiations with prospective contractors, the submitted tender is known as a BAFO (best and final offer).
Depending on the RFP document's specification, a bidder may be required to decide upon project expectations, timetable, product design, and vendors.
[3] The FAR allows for evaluation of proposals, further discussions with bidders and invitation for submission of written final proposal revisions (FPRs), upon which a final selection decision is based.