Business Glossary

document sent by a potential buyer to potential vendors soliciting price quotes; also called Request for Quotation. Commonly referred to as an RFP, it includes all of the buyer's product or service requirements as well as a description of the required format, timing and content of the price quotes to be submitted. RFP's enable the buyer to ensure that all vendors have an equal understanding of the requirements and that the bids can easily be compared. This is especially important for highly complex products and services that require customization to meet the unique needs of the buyer.

See also competitive bid