What's an RFP?

When a city, county, school district or federal agency needs work done, it usually can't just call a company it likes. It's spending public money, so the law expects it to ask for offers in the open and pick fairly. The document it puts out to ask for those offers is called a solicitation. RFP is one kind, and it's the name people often use for all of them.

Solicitations are long and full of their own words. You don't need to know all of them. The ones below come up in almost every bid a trade business will see.

The main kinds of solicitation

ITB (Invitation to Bid), sometimes IFB

The agency knows exactly what it wants and asks for sealed prices. Usually the lowest price from a business that meets every requirement wins. A lot of cleaning, mowing and repair work is bought this way.

RFP (Request for Proposals)

The agency asks for sealed proposals: your price plus how you'll do the work, your experience and your staff. A committee scores each proposal against the criteria written in the RFP, so the lowest price doesn't automatically win.

RFQ (Request for Quotes)

Often used for smaller or simpler jobs. It's usually quicker and lighter on paperwork than an ITB or RFP, but read it just as carefully.

ITN (Invitation to Negotiate)

Used in Florida when an agency wants to talk terms with one or more businesses before picking one. Less common for routine trade work.

Words inside the solicitation

Scope of work

The part that says exactly what work, where, how often and to what standard. Price only what's in it.

Addendum (plural: addenda)

A change or answer the agency issues after the solicitation is posted. Addenda can change dates, quantities or requirements. You're expected to know about every one, and often to sign and return a form saying you received it.

Pre-bid meeting or site visit

A meeting, often at the job site, where the agency walks bidders through the work. If the solicitation calls it mandatory, check its exact wording: missing a mandatory meeting can mean you aren't allowed to bid.

Questions deadline

The last day you can ask the agency questions in writing. Answers usually come back as an addendum that every bidder sees.

Due date and time

The exact moment bids must be in. Treat it as a hard stop, not a goal.

Bid bond

A guarantee, usually from a surety company (a company that backs contractors' promises, a bit like an insurer), that you'll sign the contract if you win. Only some solicitations ask for one, and they say how much.

Responsive

Your bid answers everything the solicitation asks for, in all the ways that matter. A bid that isn't responsive can be thrown out, however good the price.

Responsible

You can actually do the job, with the ability, integrity and reliability to perform it in good faith. The agency may check your license, insurance, references and finances.

Federal agencies use slightly different names for some of these, but the idea is the same: sealed bids where price decides, or proposals scored on several factors. Once you know which one you're looking at, you know how you'll be judged.