What document is used to invite suppliers to develop and propose solutions when price is not the only factor?

The Request for Proposal (RFP) is the document specifically designed to invite suppliers to develop and propose solutions to meet a buyer's needs when price is not the sole determining factor. An RFP encourages suppliers to provide detailed proposals that can include a variety of elements such as quality, technical specifications, delivery timelines, and overall suitability for the project. This type of document allows organizations to assess suppliers based on multiple criteria, enabling a more comprehensive evaluation that aligns with strategic goals beyond cost savings.

In contrast to other documents, such as a Purchase Order, which is mainly a contractual agreement for goods or services at an agreed price, the RFP emphasizes collaboration and innovation between the buyer and supplier. The Request for Quotation primarily focuses on pricing for predefined products or services, limiting the scope of responses. Meanwhile, an Invitation to Bid is typically used for straightforward projects where price competition is key, rather than fostering a more nuanced dialogue over various solutions. Therefore, the RFP is the preferred choice for complex evaluations where multiple factors, such as value and capability, play significant roles.