What Is an RFP?

A Request for Proposal (RFP) is a formal document issued by an organization to solicit detailed proposals from potential vendors or service providers. The RFP outlines the buyer's requirements, evaluation criteria, timeline, and submission instructions, and invites qualified firms to submit a written proposal describing how they would meet those requirements, at what cost, and on what timeline. RFPs are used across both public and private sectors and are the standard procurement mechanism for complex, solution-driven engagements where the buyer needs to compare multiple approaches rather than simply selecting the lowest price.

In 2026, the RFP market is large and growing. An analysis of 7,569 RFPs posted between October 2025 and February 2026 shows that over 600 new RFPs are posted every week across Software, Construction, Consulting, Marketing, Engineering, and hundreds of other categories. The median time from posting to submission deadline is 24 days, and 82.1% of tracked RFPs originate in the United States, with Canada accounting for 11.8% and international markets making up the remainder.

How Does the RFP Process Work?

The RFP process typically follows six stages. First, the buying organization identifies a need and develops internal requirements. Second, the procurement team drafts the RFP document, which includes background information, scope of work, technical requirements, evaluation criteria, and submission instructions. Third, the RFP is published through procurement portals, government sites like SAM.gov, or distributed directly to pre-qualified vendors.

Fourth, potential vendors review the RFP, attend any pre-proposal conferences, and submit written questions during the designated Q&A period. Fifth, vendors prepare and submit their proposals by the stated deadline. Sixth, the buying organization evaluates proposals against stated criteria, conducts any necessary oral presentations or clarifications, and selects a winner. The entire cycle, from RFP publication to award, typically takes 60-120 days depending on the complexity and sector.

What Is the Difference Between an RFP, RFI, and RFQ?

Three related procurement documents serve different purposes. A Request for Information (RFI) is a preliminary document used for market research. It asks vendors to describe their capabilities and experience without requiring a detailed proposal or pricing. In our analysis, RFIs represent 6.2% of all procurement listings. A Request for Quotation (RFQ) is used for straightforward purchases where the requirements are well-defined and the buyer primarily needs pricing. RFQs appear in 0.9% of listings and are most common for commodity purchases and standard services.

An RFP sits between these two in complexity and detail. It requires vendors to describe their proposed solution, methodology, team, timeline, and pricing, making it the preferred mechanism for complex engagements like software implementations, construction projects, and consulting services. RFPs account for 4.0% of listings in our dataset. Additionally, Sources Sought notices (1.9% of listings) and Invitations for Bid (IFBs, 0.4%) are used in federal procurement for market research and sealed-bid construction projects respectively.

What Are the Key Components of an RFP?

A standard RFP contains several core sections. The Introduction and Background section describes the issuing organization and the context for the procurement. The Scope of Work section details what the buyer needs, including functional requirements, technical specifications, and performance standards. The Submission Requirements section specifies exactly what the vendor must include in their proposal: technical approach, past performance, team qualifications, pricing, and certifications.

The Evaluation Criteria section explains how proposals will be scored. Federal RFPs typically use weighted factors like Technical Approach (40-50%), Past Performance (20-30%), and Price (20-30%). The Terms and Conditions section covers contract type, period of performance, insurance requirements, and legal provisions. Finally, the Timeline section lists key dates including the questions deadline, submission deadline, and expected award date. In our dataset, the most common contract duration is 36 months (3 years), followed by 12 months and 60 months.

What Industries Use RFPs Most?

Software is the single largest RFP category, representing 34.1% of all listings (2,578 out of 7,569 in our dataset). Construction follows at 7.2% (544), Consulting at 6.0% (453), Marketing at 4.9% (370), and Engineering at 3.6% (274). However, the RFP market has an extremely long tail: 405 unique categories exist in our dataset, with 47.4% of those categories having only a single listing. This fragmentation means that virtually every industry uses RFPs, from cybersecurity and healthcare IT to event management and fleet operations.

The federal government is the largest single buyer, with 25.0% of RFPs referencing federal agencies or procurement processes. The Department of Veterans Affairs (171 RFPs) and Department of Defense (156) are the most active. State and local governments, educational institutions, and healthcare systems also issue significant RFP volume, though these are distributed across many smaller procurement offices rather than concentrated in a few large agencies.

How Long Does It Take to Respond to an RFP?

The median time from RFP posting to submission deadline is 24 days across all categories. However, this varies significantly by sector. IT Services has the shortest median at 21 days, while Construction allows 27 days. Nearly half of all RFPs (45.7%) give respondents 21 days or fewer, and 10.2% are rush opportunities with 7 days or less. The practical writing window is even shorter: after accounting for discovery time, internal review, and compliance checks, most teams have 8-12 business days for actual drafting.

These tight timelines are driving widespread adoption of AI-powered proposal management tools. Platforms like Settle maintain centralized answer libraries, automate opportunity discovery, and use AI to generate first drafts from existing approved content. According to industry benchmarks from the Association of Proposal Management Professionals (APMP), teams using dedicated proposal management software report 30-50% faster response times and 15-25% higher win rates compared to teams using manual processes.

Frequently Asked Questions

What does RFP stand for?

RFP stands for Request for Proposal. It is a formal procurement document issued by a buying organization to solicit detailed proposals from potential vendors. The RFP describes the buyer's requirements and asks vendors to submit a written response detailing their proposed solution, team, timeline, and pricing.

How many RFPs are posted each week?

Based on Settle's analysis of current market data, approximately 600 or more new RFPs are posted every week across all categories and geographies. Volume is seasonal, peaking in January (2,297 monthly listings) and dipping during the Christmas holiday period.

What is the typical RFP response deadline?

The median deadline is 24 days from the date the RFP is posted. However, 45.7% of RFPs allow 21 days or fewer, and 10.2% are rush opportunities with 7 days or less. IT Services and Software RFPs tend to have the shortest deadlines at 21-22 days median, while Construction and Engineering allow closer to 27 days.