Request for Proposal (RFP)
Definition: An invitation for suppliers to propose a solution to a problem or need, where the agency defines the outcome it wants but allows respondents flexibility in how they deliver it.
What is a Request for Proposal (RFP)?
A Request for Proposal (RFP) is a procurement document used by Australian government agencies when they know the outcome they want but are open to different approaches for achieving it. Unlike a Request for Tender, which prescribes exact specifications, an RFP invites suppliers to propose their own methodology, solution design, or delivery approach.
How Does an RFP Differ from an RFT?
The key distinction is flexibility. In an RFT, the agency specifies precisely what it needs and suppliers price that specification. In an RFP, the agency describes a problem or desired outcome, and suppliers propose how they would solve it. This makes RFPs common for:
- Complex IT projects where multiple technical approaches are viable
- Consulting engagements requiring strategic or creative thinking
- Service design where innovation is valued
How Does the RFP Process Work?
- The agency publishes the RFP on a procurement portal such as AusTender or Buying for Victoria
- Suppliers submit proposals outlining their approach, team, timeline, and pricing
- Proposals are evaluated against Evaluation Criteria, which often weight methodology and innovation alongside price
- The agency may shortlist respondents for presentations or clarification sessions
- A contract is awarded based on Value for Money
Tips for Tenderers
- Focus on the outcome — demonstrate you understand the agency’s problem before diving into your solution.
- Differentiate your approach — since the scope is flexible, your methodology is a key differentiator.
- Show relevant experience — case studies of similar outcomes you have delivered carry significant weight.
- Price transparently — break down costs so evaluators can see where their money goes.
Related Terms
Evaluation Criteria
The specific factors, weightings, and standards that a government agency uses to assess and compare tender responses in order to determine which supplier offers the best value for money.
Multi-Stage Procurement
A procurement approach conducted in two or more sequential phases, typically starting with a broad market engagement like an EOI before narrowing down to a formal tender among shortlisted suppliers.
Request for Information RFI
A non-binding market engagement where a government agency gathers information from suppliers about available solutions, capabilities, or pricing to help shape a future procurement strategy.
Request for Tender RFT
A formal invitation from a government agency for suppliers to submit a detailed bid to deliver specific goods, services, or works against clearly defined requirements and evaluation criteria.
Statement of Requirements SOR
The section of a tender document that details exactly what goods, services, or works the government agency needs, including specifications, deliverables, timelines, and performance standards.
Never miss a relevant tender
Get AI-filtered tender alerts matched to your services. Start your free trial today.
Get Started Free