Software RFP Template: What To Ask Before You Hire A Developer
What A Software RFP Includes
A software RFP, short for request for proposal, is a document you send to software companies that explains what you need built, how you will judge their answers and what their reply must include. It lets you compare proposals fairly instead of comparing quotes that were written for different projects.
Most buyers write an RFP after a frustrating round of quotes that cannot be compared. One vendor priced a simple version, another priced a version with features you never asked for, and a third gave a range so wide it was useless. The cause is usually the same: each vendor was answering a slightly different question. In PMI's 2013 Pulse of the Profession research, nearly half (47%) of unsuccessful projects missed their goals because of inaccurate requirements management (PMI (opens in a new tab)). An RFP is where you write those requirements down before anyone starts building.
This guide gives you a free software RFP template in two sizes, a scoring sheet for comparing proposals, the questions worth asking every vendor, and a step-by-step process with a suggested schedule. It is written for business owners and managers who are buying custom software or an AI system, and it assumes no technical background. If you are still deciding who to invite, start with our guide to choosing a custom software development partner.
What Is A Software RFP?
A software RFP is a written request that asks software companies to propose how they would build or supply a solution to a problem you describe. It sets out your goals, scope, budget, timeline and selection criteria, so every vendor answers the same brief and you can score the replies side by side.
You may also see it called an RFP for software development, an RFP template for software, a software request for proposal template or an RFP software template. The names differ, but the purpose is the same.
The word "proposal" matters. An RFP asks vendors to explain how they would solve the problem, not just what they would charge. Two related documents are easy to confuse with it. Table 1 shows how they differ, using the plain-language definitions from the U.S. General Services Administration (opens in a new tab).
| Document | What it asks for | When to use it |
|---|---|---|
| RFI (request for information) | A description of what vendors can do. No bid, no price. | You are still exploring and do not yet know what is possible. |
| RFQ (request for quotation) | A price for a clearly defined piece of work. | The work is well defined and the main question is cost. |
| RFP (request for proposal) | A full plan covering approach, team, timeline and price, judged on several factors. | The problem is clear but there is more than one way to solve it. |
Table 1: How an RFI, an RFQ and an RFP differ.
For custom software, an RFP is usually the right choice, because the same problem can be solved in very different ways and you want to see each vendor's thinking before you compare prices.
When You Need An RFP And When You Do Not
An RFP takes time to write and time for vendors to answer. That is worth it only when the decision is large enough and the problem is clear enough. These situations point toward writing one:
You will spend enough that a wrong choice would hurt, and you want a clear record of why you chose a vendor.
Several vendors could do the work, and you want to compare their approaches, not only their prices.
More than one person has to agree on the choice, and you need a document that shows the reasoning.
Other situations call for something shorter. If you cannot yet describe the problem clearly, an RFP will lock in the wrong requirements, and a short discovery conversation or paid workshop is a better first step. If the project is small, a one-page brief sent to two or three vendors does the same job. If a ready-made product might solve the problem, read our guide to custom business software first, so you know whether to build at all. And if you are not sure whether to hire outside help, our comparison of in-house and outsourced development will help you decide before you write anything.
What To Include In A Software RFP
A good RFP answers the questions a vendor would otherwise have to guess at. The eight parts below cover them. The template later in this guide turns each part into wording you can copy, so here the focus is on what to decide.
1. Background: Who You Are And Why Now
Give two or three sentences about your business, your size and what is driving the project. A vendor who understands that you run a 40-person company with a small operations team will propose something different from one who assumes you have an IT department.
2. The Problem And How You Will Measure Success
Describe the problem in terms of the work, not the technology. "Our team re-types every order into three systems and makes about ten errors a week" is more useful than "we need a portal." Then say how you will know it worked, for example fewer errors, faster turnaround or lower cost per order. If you cannot put a number on it yet, say what you will measure first.
3. Users And How The Work Happens Today
List who will use the software and walk through the current process in a few steps, including the awkward exceptions. Exceptions are where most software projects go wrong, because the happy path is easy to describe and the odd cases are what take the time. Tell vendors which exceptions happen most often.
4. Scope: What Is In And What Is Out
Split your needs into must-haves and nice-to-haves, and write down what is explicitly out of scope. A clear "not in this phase" list prevents a lot of disagreement later. If you are unsure what to build first, our guide to what growing businesses build first can help you choose a sensible starting point.
5. Existing Systems And Integrations
Name the tools the new software must work with, such as accounting software, a customer database or a payment provider, and say who controls access to each. If you are replacing an old system, describe it and say what has to be moved across. Our guide to legacy software modernization covers the questions that come up when old and new systems overlap.
6. Data, Security And Compliance
State what kind of information the software will handle, such as customer records, payments or health data, and any rules that apply to it. Ask vendors how they protect data and who on their team can see it. You do not need technical language here. "This system will hold customer names and addresses and must meet our clients' security questionnaires" is enough for vendors to respond properly.
7. Budget And Timeline
Share a budget range and a target date, even if both are rough. Without a range, quotes can differ widely, and you will not know whether a low number reflects a smart approach or a missing piece of work. A range also lets vendors tell you honestly what fits and what does not. Our guide to development cost versus maintenance cost helps you decide how much to set aside beyond the build itself. For dates, the custom software development timeline guide shows what drives the schedule.
8. Response Format, Deadline And Contact
Tell vendors exactly what to send, in what order, by when and to whom. A fixed structure makes proposals easy to score. Allow a question period before the deadline and share each question and answer with all vendors, so no one has an unfair advantage.
Software RFP Template
Copy the template that fits your project into your own document and replace everything in square brackets. Use the short version for a smaller project or a first round with two or three vendors. Use the full version when the budget is large or several people must approve the choice. Delete any section that does not apply, and keep the rest as short as the decision allows, because every extra page is unpaid work for the vendor. Treat each one as a sample software RFP template to adapt, and the worked example later in this guide as a software RFP example in use.
Short Software RFP Template
[Company name] Request For Proposal: [Project name]
Issued [date]. Questions due [date]. Proposals due [date]. Contact: [name, email].
1. About us and the project
[Company name] is a [type of business] with [number] people in [location]. We want to [one sentence describing the project] because [one sentence on why now].
2. The problem
Today, [describe how the work is done and what goes wrong]. We will know this project worked when [measure, for example errors fall from 10 a week to 2].
3. What we need
Must have: [list]
Nice to have: [list]
Not in this phase: [list]
4. Systems it must work with
[List tools, such as accounting software, customer database or payment provider, and who controls access.]
5. Budget and dates
Budget range: [from] to [to]. Target start: [date]. Target first release: [date].
6. What to include in your reply
Your understanding of the problem in your own words; your approach and first release; who will work on it and for how many hours a week; a price and what it covers; what is not included; two references from similar projects; and the main risks you see.
7. How we will choose
We will score replies on [list the criteria and weights from the scoring sheet below]. We will reply to every vendor by [date].
Full Software RFP Template
[Company name] Request For Proposal: [Project name]
Issued [date]. Questions due [date]. Proposals due [date]. Decision by [date]. Contact: [name, role, email].
1. Purpose of this document
This document invites software companies to propose how they would deliver [project name] for [Company name]. It describes our needs, our process for choosing a vendor and what we need in your reply. Issuing this request does not commit [Company name] to hire any vendor.
2. About us
[Two to four sentences: what the business does, size, location, customers.]
3. The problem and our goals
[Describe the problem in terms of the work.] We will measure success by [measures and starting numbers]. Within [timeframe] after launch we expect [result].
4. Users and how work happens today
[List user groups and how many people in each.] Today the process works like this: [steps]. The exceptions that happen most often are: [list].
5. Scope
Must have: [list]
Nice to have: [list]
Out of scope for this phase: [list]
6. Existing systems and integrations
The software must connect with: [systems, who controls access, any known limits]. [If replacing a system: describe it and what data must move.]
7. Data, security and compliance
The software will handle [types of information]. Rules that apply to us: [for example client security reviews, privacy laws, industry rules]. Please describe how you protect data, who on your team can access it and where it is stored.
8. Timeline
Target start: [date]. First usable release: [date]. Full scope: [date]. Please tell us if you think these dates are unrealistic and why.
9. Budget and pricing
Our budget range for this phase is [from] to [to]. Please state whether your price is fixed or based on time and materials, what it includes, what it excludes and what could cause it to change.
10. Support and ownership
We expect to own the code, designs and data created for us. Please describe hosting, support and handover after launch, including documentation and access to the source code.
11. What to include in your reply
Please answer in this order: (1) your understanding of the problem; (2) your proposed approach and first release; (3) team members, roles and weekly time; (4) timeline with milestones; (5) price, assumptions and exclusions; (6) how you handle changes; (7) support after launch; (8) two references from similar projects; (9) main risks and how you would reduce them.
12. How we will evaluate replies
We will score each reply out of 100 using these criteria: [criteria and weights, see the scoring sheet]. We may ask shortlisted vendors for a call or a demo. We will tell every vendor the outcome by [date].
13. Process and confidentiality
Send questions to [email] by [date]. We will share questions and answers with all vendors without naming who asked. Please treat this document as confidential. [Add an NDA if needed.]
How To Score Software Proposals
Scoring turns a pile of different proposals into a decision you can explain. Decide the criteria and their weights before you read any reply, so a persuasive pitch cannot change what matters to you. Harvard Kennedy School's Government Performance Lab recommends being open about how proposals will be judged, and gives the example of a city that listed the relative importance of each criterion so vendors could see what it valued (Harvard Government Performance Lab (opens in a new tab)). Virginia's state procurement manual goes further and requires agencies that use weighted scoring to put the point values in the RFP or post them publicly before proposals are due (Virginia IT procurement manual (opens in a new tab)). A private business is not bound by public rules, but the practice works for you too, because vendors write better proposals when they know what you value.
Figure 2 shows an example set of weights for a custom software project. Change them to fit yours.
Example Scoring Weights For A Software RFP
To score a proposal, have each person who reads it rate every criterion from 0 to 5 on their own, then compare ratings and discuss large gaps. Convert each rating to points by dividing it by 5 and multiplying by the weight. Table 2 shows the method with two imaginary vendors.
| Criterion | Weight | Vendor A rating | Vendor B rating |
|---|---|---|---|
| Understanding of our problem | 25 | 4 (20 points) | 2 (10 points) |
| Approach and first release | 20 | 5 (20 points) | 3 (12 points) |
| Relevant experience and references | 15 | 3 (9 points) | 5 (15 points) |
| Team and communication | 15 | 4 (12 points) | 3 (9 points) |
| Price and commercial terms | 15 | 2 (6 points) | 5 (15 points) |
| Risk, security and support | 10 | 4 (8 points) | 3 (6 points) |
| Total | 100 | 75 | 67 |
Table 2: An illustrative scoring example. The vendors and numbers are invented to show the method.
In this example, Vendor B is cheaper and has the stronger track record, but Vendor A scores higher overall because it understood the problem better and proposed a clearer first release. The scoring sheet does not make the decision for you. It shows where the disagreement is, which is usually worth a second call with both vendors.
Three habits keep scoring honest. Score price last, so it does not color the other ratings. Give lower weights to things you can check later, such as references, and higher weights to things that are hard to fix afterward, such as understanding of the problem. And write one sentence of evidence for every rating, so you can explain the result to anyone who asks.
Questions To Ask Every Vendor
The reply to your RFP shows what vendors chose to say. Your follow-up questions show how they think. Ask the same questions of every shortlisted vendor, in a call or in writing, and compare the answers. Table 3 lists eight questions and what a useful answer sounds like.
| Question | What a good answer sounds like |
|---|---|
| How will you check that we are solving the right problem before you build? | Describes talking to the people who do the work, looking at real examples and data, and may suggest a smaller or simpler first step. |
| Who will actually do the work, and how many hours a week? | Names roles, says who leads, and gives time commitments instead of "our team". |
| What assumptions are in your estimate, and what is not included? | Lists assumptions plainly, such as data quality, number of users and third-party access. |
| How do you handle changes after we agree the scope? | Has a written change process where each change is described, priced and approved before work starts. |
| Who owns the code, designs and data when we finish? | You own them. Source code access and handover documents are part of the agreement. |
| What happens after launch? | Explains hosting, fixes, support hours and costs, and what documentation you receive. |
| Can we speak to a client with a similar project? | Offers real references and does not avoid the question. Be wary of references that cannot be contacted. |
| How will we know it works before we pay for everything? | Proposes a small first release, clear acceptance checks and a point where you can stop or change direction. |
Table 3: Questions to ask every shortlisted vendor.
Pay attention to how vendors answer questions they did not expect. A partner who says "we would need to look at your data before answering" is often more reliable than one with a confident answer to everything. Our guide to what to verify before signing goes deeper on commercial terms and handover, and our overview of software maintenance contracts explains what support agreements usually cover.
Extra Questions For AI Projects
If the software includes AI, add questions that test how the vendor will prove it works. Ask how the AI will be tested on your real data before launch, how errors will be detected and reported, which AI providers and data locations are involved, and where a person will review the output. Ask for a paid, time-limited pilot before a full commitment. Our guide to choosing an AI vendor explains what to ask. For the pilot itself, see how to run an AI proof of concept. To test a vendor's claims before you sign, see how to vet an AI vendor.
How To Run The RFP Process
The process has five steps. Figure 3 shows them with a suggested schedule for a small to mid-sized project. The timings are our suggestion, not a standard, so stretch them if your decision needs more people.
The RFP Process In Five Steps
Prepare (week 1). Talk to the people who do the work, write down the problem, set a budget range and agree the criteria and weights. Decide who will score replies and who has the final say.
Issue (week 2). Send the RFP to three to five vendors you have already screened. More than that adds reading time without improving your choice. Give vendors about two weeks to reply.
Answer questions (weeks 2 to 3). Collect questions in writing and send every answer to every vendor. This keeps the process fair and often reveals which vendors understood the brief.
Score (week 4). Each reader scores independently, then the group compares ratings and discusses gaps. Shortlist two vendors and ask them for a call or a demo.
Check and decide (weeks 5 to 6). Talk to references, agree the scope and terms in writing and, for larger projects, start with a paid pilot. Tell every vendor the outcome, including those who were not chosen.
Telling unsuccessful vendors the outcome, and giving a short reason if they ask, is good practice and costs little. It also keeps good vendors willing to answer your next RFP.
A Worked Example: A Rental Company Writes Its RFP (Illustrative)
This example is hypothetical. It is a sample RFP for software, written to show how the steps fit together, and not the result of a real project.
A regional equipment rental company with 35 employees tracks bookings in spreadsheets and a shared inbox. Double bookings happen about twice a month, and the owner wants software that shows what is available, takes bookings online and sends invoices. She writes a short RFP using Template A. The problem section describes the double bookings and the exceptions that cause them: equipment returned late, repairs that take a machine out of service, and customers who extend a rental by phone. The budget range is stated, and the "not in this phase" list excludes a customer mobile app.
She sends it to four vendors and holds one question period. Three replies arrive. The cheapest is about half the price of the others, but its approach assumes the booking data is already clean, and the owner knows it is not. Using the scoring sheet, the cheapest vendor ranks last on understanding of the problem and on risk, and a mid-priced vendor ranks first because it proposes a two-week data clean-up and a small first release covering bookings only. She asks that vendor for a paid pilot on one branch before agreeing to the full scope.
The RFP did not pick the vendor for her. It made the real differences visible, so the decision rested on how well each vendor understood the work and not only on price.
Common RFP Mistakes
Describing features instead of the problem. A feature list invites vendors to price features. A problem description invites them to solve it.
Hiding the budget. Without a range, quotes differ so much that comparing them tells you very little.
Sending a long RFP to many vendors. Long documents cost vendors unpaid time, and more replies mean more reading for you. Three to five well-chosen vendors is enough.
Leaving out the exceptions. Vendors price the normal path. If you do not mention the awkward cases, they will appear later as change requests.
Choosing the criteria after reading the replies. This makes it easy to favor whoever pitched best. Fix the weights first.
Treating the RFP as the contract. An RFP and a proposal are not a legal agreement. Once you choose a vendor, agree scope, price, ownership and change handling in a written contract that a lawyer has reviewed.
Skipping the pilot on larger projects. A small, paid first release shows how a vendor actually works before you commit to everything.
How Fossilite Approaches Software RFPs
Our approach starts with how the work is done today, not with a feature list. When a business asks us for a proposal, the first thing we look for is whether the problem is clear enough to price. If it is not, we would rather suggest a short discovery step or a small first release than guess at a full project. We also check whether an existing tool or a simpler change would solve the problem, and we recommend custom software or AI only where it is justified. A short brief followed by a real conversation usually tells both sides more than a long RFP does.
When To Get Outside Help
Most owners can write a good RFP using the templates above. Outside help is worth considering when the project touches regulated data, when several departments disagree about requirements, or when you have never bought software before and want someone to sanity-check the RFP and the replies. Ask a lawyer to review the confidentiality, ownership and contract terms, and consider a technical advisor who is independent of the vendors you are comparing. If the project involves AI, our guide to choosing an AI consulting partner explains how to assess advisors.
Frequently Asked Questions
These are the questions buyers ask most often about a software RFP. Each answer stands on its own.
How Do I Compare Software Proposals?
Score every proposal against the same criteria, with the weights fixed before you read any reply. Rate each criterion from 0 to 5, convert the ratings to points, and write one sentence of evidence for each. Score price last, then discuss large gaps between readers and call your top two vendors.
What Should A Software RFP Include?
A software RFP should include background on your business, the problem and how you will measure success, users and current process, scope with must-haves and exclusions, existing systems, data and security needs, budget and timeline, the reply format and deadline, and the criteria you will use to score proposals.
How Long Should A Software RFP Be?
As short as the decision allows. A smaller project can use a one-page brief, while a larger project may need several pages. Length is not the goal. Each section should give vendors information they would otherwise guess, because every extra page is unpaid reading and writing time for the vendors who answer.
Should I Tell Vendors My Budget?
Yes, a range is usually better than silence. Without one, quotes can differ widely, and you cannot tell whether a low price reflects a clever approach or missing work. A range lets vendors say honestly what fits, and you can still negotiate within it.
How Many Vendors Should I Send An RFP To?
Three to five vendors that you have already screened is a practical number. Fewer than three leaves little to compare, and more than five adds reading time without improving the decision. Choose vendors with relevant experience and send each one the same document and the same answers to questions.
What Is The Difference Between An RFP, RFI And RFQ?
An RFI asks vendors what they can do and does not ask for a price. An RFQ asks for a price on well-defined work. An RFP asks for a full proposal covering approach, team, timeline and price, and judges it on several factors. Use an RFP when the problem is clear but the solution is not.
Do I Need An RFP For A Small Software Project?
Usually not a formal one. For a small project, a one-page brief that states the problem, must-haves, budget range and deadline, sent to two or three vendors, does the same job. Keep the scoring idea: decide what matters most before you read the replies, and compare vendors on the same points.
If you have a problem to solve but are not ready to write an RFP, our guide to choosing a digital transformation partner can help you decide what kind of help you need first.