The Custom Software RFP Template You Can Actually Use

Most RFP templates for custom software are useless. They were written for procurement teams to compare apples to apples on commodity work — and custom software isn't commodity work. The questions miss what actually matters. The structure invites lazy answers.

Here's a custom software RFP template that actually elicits the information you need to compare vendors. Use it as-is or adapt to your situation.

Section 1: Project context

Tell the vendor enough to give a useful answer.

Company snapshot: what you do, size, industry, why this software matters to your business

Current state: what you use today, what's working, what's not

Decision drivers: what's the #1 outcome that would make this project a success

Constraints: timeline, budget range, must-haves

Don't write a 30-page RFP. 2–3 pages here is usually enough.

Section 2: Scope description

Be specific about what's in and what's out. The "out of scope" list is the most important part.

In scope: features, integrations, user types, data model, expected scale

Out of scope: features you've considered and decided against (for now), future phases, things you'll handle yourself

Open questions: things you're genuinely unsure about, where you want the vendor's recommendation

Section 3: Technical environment

What context the vendor needs to scope appropriately:

Current stack: tech stack today, key vendors, integrations

Compliance needs: SOC 2, HIPAA, GDPR, etc.

Hosting preferences: your cloud vs theirs, specific region/availability requirements

Data sensitivity: PII, financial data, healthcare data

Performance targets: users, transactions, data volume

Section 4: The 8 questions that actually differentiate vendors

What's your "out of scope" list for our project? Tests if they've actually read the RFP.

What 3 projects have you delivered similar to ours? Can we see the live software? Tests track record specifically vs vague portfolio.

What's your weekly demo cadence and what does week 1, 2, 3 deliver? Tests methodology.

What does code ownership look like in the contract? Tests if you'll actually own what's built.

What's your team composition for this project and can we meet the lead engineer? Tests if you're getting senior people.

What's your fixed-price vs time-and-materials approach? Tests if they'll commit to a price.

What happens if the project goes 20% over scope? Tests if they understand and price scope creep.

What's your warranty and exit story? Tests if they're set up for ownership transfer.

Section 5: Pricing structure

Specify the response format so apples-to-apples comparison is possible:

Fixed total broken down by phase

Payment schedule tied to milestones

Out-of-scope rate for additions

Maintenance options post-launch

If a vendor responds with hourly rates and no fixed total, that's information about how they work.

Section 6: Evaluation criteria

Tell vendors how you'll evaluate so they can lead with what matters:

Track record (relevant similar projects)

Methodology (weekly demos, fixed scope, etc.)

Team (senior, dedicated, named)

Price (and price structure)

Ownership terms

Cultural fit (subjective but matters)

Weight these explicitly. A vendor knows to lead with weeks-by-week deliverables if that's 25% of your evaluation.

What to leave out

Don't include:

50 generic "company background" questions

Detailed legal terms (those come later)

Penalty clauses for missing arbitrary deadlines (kills proposals from good vendors)

Demands for unrealistic free work (proof-of-concepts, free designs)

These signal that you don't understand custom software development. Quality vendors will pass on RFPs that contain them.

How to use this template

Adapt to your situation

Send to 3–5 vendors (more is overkill)

Schedule 30-minute follow-up calls with each

Evaluate using the criteria you specified

Pick the vendor whose answers to the 8 questions in section 4 are most specific and credible

For our own answers to those 8 questions, see 5 Questions to Ask Any Vendor. Or get a transparent quote via the cost calculator.