Posted By Dhruv Sagar | Jun 13, 2025 | Global Tender
The terms RFP (Request for Proposal) and Tender are used interchangeably in the universe of procurement and public contracting. They are however, different ways of requesting business offers and proposals with the suppliers. The difference between RFP and tender are important to any business, government agencies, and procurement professionals willing to gain or offer contracts successfully. In this comprehensive paper of Bid Detail, we are going to discuss the essence of RFPs versus tender, their application, steps, and main benefits.
A Tender is a formal notice to suppliers to offer their prices in supplying certain specified goods or services, most often issued by government departments or agencies, or public sector enterprises, or large private businesses. Tenders are very rigid, legally binding procedures with procurement regulations, and price and conformity to specified requirements are the key factors in tenders.
Open Tender: Anyone can submit a bid.
Selective/Restricted Tender: Only pre-qualified vendors are invited.
Limited Tender: Bids are invited from a few selected vendors.
Single/Two Bid System: Technical and financial bids may be submitted separately or together.
Highly standardized format
Fixed technical and financial parameters
Focus on competitive pricing
Legal and regulatory compliance
Transparency and fairness in public procurement
A Request for Proposal (RFP) is a document employed when the purchasing organization desires to hear elaborate proposals of vendors to resolve a problem or provide a project, and there is generally potential of imaginative or technical resolutions. It is more common in industries such as IT, consultation, infrastructure building and mega service provisions. As opposed to tenders, RFPs are not centered on price solely. They give considerable stress on quality of solution, qualification of vendors and approach to project.
Broad, problem-solving approach
Requires detailed proposal submissions
Evaluates technical capabilities, methodology, and innovation
Often includes presentations or interviews
Used in complex, service-based, or technical projects
Let’s break down the major differences between RFP and Tender under key categories:
Criteria | Tender | RFP (Request for Proposal) |
|---|---|---|
Purpose | To procure goods or services based on defined specifications | To solicit innovative or customized solutions to a defined problem |
Focus | Price and compliance with specifications | Quality, methodology, creativity, and vendor capabilities |
Structure | Highly standardized and legally defined | Flexible and narrative-based |
Evaluation | Primarily based on lowest price (L1) or techno-commercial parameters | Based on technical merit, value addition, and proposal strategy |
Use Case | Construction, supply contracts, manufacturing, commodities | IT solutions, consultancy, research, and service innovation |
Vendor Interaction | Minimal; limited scope for changes | High; includes discussions, clarifications, and presentations |
Flexibility | Low flexibility post-issue | Moderate to high flexibility during evaluation |
A tender is best suited when:
The requirements are clearly defined
The product/service is standardized
Price competitiveness is the top priority
There is a need for transparency and legal compliance (especially in public sector)
For example, government tenders for road construction, supply of hospital equipment, or office furniture procurement are best managed through the tendering route.
An RFP is ideal when:
The problem or requirement is complex or evolving
Creative, technical, or consulting solutions are needed
You want to assess the vendor''s approach, team, and innovation
You need to shortlist the best-fit vendor, not just the lowest bidder
For example, an RFP would be suitable for selecting an IT partner for implementing a national e-governance platform or hiring a consultant to design a new urban transportation strategy.
Despite their differences, both RFPs and Tenders share certain commonalities:
Both are formal procurement methods
Require clear documentation and deadlines
Involve bid evaluation procedures
Aim for fair vendor selection
Can be published via e-procurement portals or tender platforms like Bid Detail
Tenders are more tightly regulated, especially in public sector procurement, with specific guidelines like:
General Financial Rules (GFR)
CVC (Central Vigilance Commission) Guidelines
Public Procurement Acts
RFPs may offer more discretion to evaluators but are still bound by principles of:
Fairness
Non-discrimination
Confidentiality
Integrity
Typically follows a single or two-envelope system
May involve earnest money deposit (EMD)
Financial bids are opened only if technical bids qualify
L1 (lowest price) bidder often wins
Emphasizes detailed proposals, case studies, project plans
May involve presentations or interviews
Evaluated on technical scores, quality, and feasibility
Pricing is one of many factors considered
Use Tender if you need standard goods/services at the best price.
Use RFP if you seek solutions or services with variable implementation methods.
Choose Tenders if your strength lies in competitive pricing and meeting specifications.
Choose RFPs if your strength lies in delivering customized, high-value solutions and services.
Although RFPs and Tenders have identical end objectives, namely the proper choice of a vendor or a supplier, these two types of procedures have radically different means to that end. Being aware of these distinctions assists the buyers and bidders to understand the procurement process better and increase the chances of winning contracts. At Bid Detail, we help you access thousands of RFPs and Tenders across industries and regions. Whether you''re a startup, SME, or large enterprise, our platform provides detailed insights, bid alerts, and submission support to maximize your chances of success.
