RFP is an acronym for "request for proposal," which is a solicitation by a company for bids on a project. The goal is to invite vendors to respond with recommended solutions and pricing, so the company has options in selecting a provider.
Companies submit RFPs in a variety of situations. When a company starts or expands its operations, it may require additional technology infrastructure. Thus, bids may be sought from technology solutions providers for equipment, installation, training and support. In addition to price, companies look at the overall value of a vendor's recommended solution, including the timeline for implementation, added value and potential complications.