"RFPs put people in competition with each other, they do not encourage collaboration"

- panelist at a public health event I am attending

But doesn't any funding mechanism that has a fixed amount of money to give away put people in competition with each other? What are the best ways to minimize this?

A funding mechanism where the amount of money is not fixed but instead inflationary (tied to the expect impact of the project) — this can align everyone's interests in the ecosystem against devaluation (vs. expected value from project)