Final answer:
An organization uses a document called a Request for Proposal (RFP) to define project requirements and solicit proposals from potential contractors. An RFP includes a clear project description, deliverables, and evaluation criteria to aid the selection process.
Step-by-step explanation:
When an organization decides to use external resources for a project, they prepare a Request for Proposal (RFP). This document outlines the project's requirements and is utilized to solicit bids or proposals from potential contractors. The RFP process begins with a clear understanding of the project at hand, including defining the problem, the needs of potential customers, and any constraints such as deadlines and budgets. Armed with this knowledge, an entity can draft an RFP that includes a description of the project, the scope of work, deliverables, and a detailed criteria for how proposals will be evaluated.
Once created, the RFP is distributed to potential contractors who then submit their proposals, suggesting solutions and providing bids for completing the project. The organization can thereby assess which contractor offers the best solution at the most favorable cost and with the most advantageous timeline. The use of an RFP is a common business practice and is essential for projects where the organization lacks the in-house resources or expertise to complete the project on its own.