A request for proposal (RFP) solicits offers from suppliers of goods or SERVICES needed by an organization. Similar terms are invitation to bid and request for quotation. Each term is associated with a different degree of request specificity and different procedures and expectations on the part of all parties involved. In the RFP process, the buyer typically transmits a precise statement of its requirements to several potential suppliers who are qualified to provide the goods or services required. The buyer does not develop precise specifications (e.g., military specifications) but does expect suppliers to present their own design and/or specifications, either standard or customized PRODUCTS, to fulfill the requirements. Often the successful supplier is required to provide substantial performance guarantees. The RFP process is often used in the procurement of major CAPITAL EXPENDITURE, large information-technology systems, commercial building development, etc. In some cases, financing of the purchase is a required component of the proposal. The buyer is free to accept the proposal it deems best. Often negotiations between the buyer and one or more potential suppliers take place before a decision is made. To balance this apparently superior position for the buyer, the bidder can withdraw a proposal at any time before an award is made. The RFP is more commonly used by businesses than by government bodies, which have more rigid guidelines to follow. In an invitation to bid, more precise specifications and/or detailed plans are given to the bidders, who are expected to comply with them exactly. Typically less effort is put into prequalifying bidders, and there are larger numbers of bidders. Usually the buyer is obligated to accept the lowest price bid, provided it meets the specifications and all other given terms and conditions. Often in the construction industry, bidders are obligated to provide bonding to insure that they be able to fulfill their obligations. The most rigid procedures involve “sealed bids,” which are opened in a public setting, with pricing and other details of bids revealed to all interested parties. This process is often used in governmental PURCHASING and less frequently in private-sector settings. The request for quotation process has implications similar to bidding, but the term is generally used when dealing with services and goods outside the construction industry. The potential supplier is commonly called the “bidder” regardless of whether asked for bids, proposals, quotations, offers, etc., in order to avoid awkward wording situations. Sample documents and typical terms and conditions to be used in the RFP (or similar) processes are available from many trade or business organizations. Commercially available print resources include Baker’s Purchasing Factomatic: A Portfolio of Successful Forms, Reports, Records and Procedures, published 1976 and still in print. At the INSTITUTE FOR SUPPLY MANAGEMENT website, one can obtain resource guides and other materials (with prices reduced for members).