How to Evaluate Software Development Proposals (RFP)

  • 5 min
  • Oct 26, 2026

FAQ

    Assess the supplier's approach and understanding, relevant experience, proposed team, total cost of ownership, and ongoing support. Score each area against published weightings. This creates a more reliable comparison than choosing based on price or presentation quality alone.

    Always read the assumptions and exclusions sections of every quote before comparing prices. Two quotes may differ widely in price because their scopes differ, not because one supplier is simply expensive. Normalize the scope first, then compare the commercial and technical proposals.

    Common red flags include unclear assumptions, no identified team members, unwillingness to provide references, an impractical time frame, and a commercial presentation that combines build and support charges without showing separate amounts. Each red flag warrants more research rather than instant dismissal.

    No. The cheapest proposal may offer excellent value. It simply needs to be judged against the same criteria as every other response. Assess its scope, technical merit, team capabilities, cost considerations, and assumptions to determine if the lowest price is the best option.

    Four to six suppliers constitute a reasonable shortlist size. There is competition enough in such a list to allow comparisons without making the process cumbersome. Shortlisting more than that makes it harder for the evaluation team to analyze each bid properly.

    An RFQ response is usually compared primarily on price against a fixed specification. An RFP response involves a more extensive evaluation, as the problem might not be clearly defined. The buyers have to assess the approach, the people behind the process, the experience, the assumptions, the risks, and the understanding of the requirements.

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