Vendor Proposal Acceptance Letter

A vendor proposal acceptance letter is a letter, that is written by a company, which is accepting a proposal of another company. The latter company is the addressee of this letter as well. This acceptance letter can also be referred to as a response letter if the company only writes a letter to the company it has decided to accept the proposal of and does not respond to all the companies, that have sent their proposals.

The company might seek a proposal from a vendor, or a vendor may offer its services to the company with the hope that its proposal will get accepted. When a company receives a proposal from a vendor, it analyses the document in a critical way to assess the pros and cons of signing a contract. If it deems the proposal beneficial, it will inform the vendor with a congratulatory wish through this type of letter.

This letter is an official and formal letter, which is issued on the company’s letterhead and is duly signed and stamped so that the vendor does not have any doubt regarding the authenticity of the acceptance letter.

When this letter is being drafted, the following factors shape its content:

  • The duration of the contract, and whether it is a rolling contract or a one-time contract.
  • The type of arrangement and contractual clauses.
  • The expectations that the company has from the vendor.
  • The competitiveness of the vendor.
  • The offers of the vendor’s proposal,
  • The mutual benefits, etc.

The length and information in such letters can, hence, vary. However, generally, the details present are:

  • Official information of the vendor company.
  • Official information of the company.
  • Reference to the received proposal.
  • Notify about its acceptance and congratulate.
  • State reasons of choosing the vendor.
  • State the contract details and duration.
  • Mention any attached documents.
  • Show hope and expectations of a good professional relationship.
  • Show openness for correspondence and queries.
  • Salutation, signature, and official stamp.

After receiving this letter, the vendor would consider the deal final and would review the received contract, which is, usually, attached with this letter. If the vendor finds the contract desirable, it will sign it for further proceedings. Therefore, this type of letter is the first step in the development of a professional and official contract.

Sample letter

Dear Ms. Sarah,

Congratulations! On behalf of ABC Limited, I want to inform you that we have accepted your proposal (Reference ID: X), which was sent by your company XYZ Limited on 5th January 20XX.

Among all the proposals we received after our tender notice, your company seemed most competitive and experienced. In addition, your offers match our intended goals. As you know, we were selling the machines ourselves. The purpose of outsourcing this job, and doing forward integration, is to reach a large number of people and generate maximum sales.

As per our previous correspondences, we will be selecting the advertising company, and the expenses of marketing and advertising will be equally borne by both ABC and XYZ.

The commencing date of the contract would be 1st February 20XX. It would be a rolling contract, as per the willingness of both parties. The initial duration of the contract is two years. A copy of the contract is attached to this letter.

We hope that both companies will mutually benefit from this deal. We will soon contact you and arrange a meeting for further proceedings. If you have any queries, contact us at [X].

We are looking forward to working with you.



Craig Jones.

Vendor Proposal Acceptance Letter

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