Final answer:
Government agencies issue RFPs to leverage the competitive advantages of private-sector firms in innovation and efficiency for projects that require investment or R&D, due to their own inherent limitations in market competition.
Step-by-step explanation:
Government agencies make Requests for Proposals (RFPs) because they do not participate in market competition like private-sector firms, hence they are not as driven by market forces to innovate or be efficient. These agencies receive tax dollars and are accountable to elected officials and the general public, which provides a much milder pressure to reform. By issuing RFPs, governments can invite proposals from private firms, which are under constant competitive pressure to be innovative and cost-efficient, to undertake investment or research and development (R&D). Providing incentives to private firms for R&D and investment leverages their expertise, the efficiencies they're compelled to seek due to market competition, and their ability to pivot rapidly in response to market demands, something government agencies may inherently lack due to their structure and lack of competition.