A request for tender (RFT) is a formal, structured invitation to suppliers for the supply of products or services. In the public sector, such a process may be required and determined in detail by law to ensure that such competition for the use of public money is open and fair. RFTs may be distributed to potential bidders through a tender service, allowing businesses to receive and search live tenders from a range of public and private sources. An RFT is usually an open invitation for suppliers to respond to a defined need as opposed to a request being sent to selected potential suppliers.
A request for proposal (RFP) is a solicitation made, often through a bidding process, by an agency or company interested in procurement of a service or asset, to potential suppliers to submit business proposals. It is submitted early in the procurement cycle, either at the preliminary study, or procurement stage. The RFP process brings structure to the procurement decision and is meant to allow the risks and benefits to be identified clearly up front. The RFP presents preliminary requirements for the commodity or service, and may dictate to varying degrees the exact structure and format of the supplier’s response. Effective RFPs typically reflect the strategy and short/long-term business objectives, providing detailed insight upon which suppliers will be able to offer a matching perspective.
Sample RFT and RFP documents can be found at http://www.consultingcloud.org/RFP_template
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