How does an RFP differ from an RFB?

An RFP, or Request for Proposal, is a document that invites suppliers to submit proposals for a specific project, often with the aim of addressing a goal or need of the organization. This process involves outlining the desired outcomes and allowing vendors to propose solutions that align with those goals. The focus here is on creativity, problem-solving, and the potential for innovative approaches to meet the organization's requirements.

In contrast, an RFB, or Request for Bid, generally focuses on soliciting bids for a specific product or service where the specifications are clearly detailed. In this scenario, the emphasis is on price and fulfilling the outlined requirements rather than exploring different approaches to achieving the end goal.

Thus, the key distinguishing factor is that an RFP encourages vendors to provide their insights and tailor their responses towards achieving a defined outcome, while an RFB is more transactional, seeking to fulfill specific project criteria. This understanding underscores the collaborative and strategic nature of an RFP compared to the more straightforward approach of an RFB.