13.3 Types of Proposals

Consider the situations in which proposals occur. A company may send out a public announcement requesting proposals for a specific project. This public announcement—called a request for proposals (RFP)—could be issued through newspapers, trade journals, Chamber of Commerce channels, or individual letters. Firms or individuals interested in the project would then write proposals in which they summarize their qualifications, project schedules and costs, and discuss their approach to the project. The recipient of all these proposals would then evaluate them, select the best candidate, and then prepare a contract.

But proposals come about much less formally. Imagine that you are interested in doing a project at work (for example, investigating the merits of bringing in some new technology to increase productivity). Imagine that you visited with your supervisor and tried to convince her of this. She might respond by saying, “Write me a proposal and I’ll present it to upper management.” As you can see from these examples, proposals can be divided into several categories:

• Solicited or unsolicited. Proposals are solicited or unsolicited. A solicited proposal is one in which the recipient has requested the proposal. Typically, a company will send out requests for proposals (RFPs) through the mail or publish them in some news source. But proposals can be solicited on a very local level: for example, you could be explaining to your boss how great it would be to install a new technology in the office; your boss might get interested and ask you to write up a proposal to do a formal study of the idea. Unsolicited proposals are those in which the recipient has not requested proposals. With unsolicited proposals, you sometimes must convince the recipient that a problem or need exists before you can begin the main part of the proposal.
• Internal or external. Proposals can be internal or external. A proposal to someone within your organization (a business, a government agency, etc.) is an internal proposal. With internal proposals, you may not have to include certain sections (such as qualifications) or as much information in them. An external proposal is one written from one separate, independent organization or individual to another such entity. The typical example is the independent consultant proposing to do a project for another firm.
• Informal or formal. Another type of proposal is informal or formal.  An informal proposal is a short document, only a few pages long, normally in the format of a memo or letter and includes fewer sections than a formal proposal. Informal proposals generally include six sections: introduction, background, plan, staffing, budget and authorization (Guffey et al., 2019). Formal proposals are longer, more complex documents, and in addition to the six sections from the informal report, they include many of the other sections found in a typical report: a letter of transmittal, title page, table of contents, list of figures, executive summary, and additional information in the appendices. They may also include a copy of the RFR.