Dan has been assigned to prepare a formal invitation to external agencies to bid for contracts. He has been instructed to specify exactly the type of work to be performed or products to be delivered, along with budgets, deadlines, and other requirements. Dan should prepare ________.

A) bids
B) request for proposals
C) due diligence reports
D) grant proposals

Dan should prepare a request for proposals (RFP) in order to provide detailed information about the work or products required, budgets, deadlines, and other requirements. The RFP is used to invite external agencies to submit bids in response to the specific needs and requirements outlined in the document. This allows for a more structured and organized bidding process. The other options are not appropriate for this scenario: bids are the actual offers submitted by bidders, due diligence reports are used to assess the risks and opportunities associated with a potential investment, and grant proposals are typically used to request funding for non-profit organizations or research projects.