"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?

I think the collaboration vs competition dichotomy is kinda misleading. Evolutionary biology proves we need both. Companies will choose one or both forms depending upon the RFP and environment, so I dont think we need explicit ways to mitigate competition.