Issue Date: 
Tuesday, October 11, 2016

Difference Between a RFI, RFQ and RFP

We are regularly asked what the difference is between a Request for Information (RFI), a Request for Proposal (RFP) and a Request for Quote (RFQ).

"RFX" is a term used, to refer to all 'Request For…' documents used to solicit responses, of various types, from suppliers. The three common documents are:

  • Request for Information (RFI)
  • Request for Proposal (RFP)
  • Request for Quote (RFQ)

According to the Government's eTenders portal (http://www.etenders.gov.za) the differences between RFQ's, RFI's and RFP's are as follows:

Request for Information (RFI)

An RFI is generally used when the solution to a business problem is not immediately evident or clearly defined. The RFI is used to gather information, NOT to make a selection or an award.
The Supply Chain Management Unit works with the Customer to:

  • Clearly describe the problem;
  • Solicit external expertise regarding how to solve the problem;
  • Study proposed solutions.

Request for Proposal (RFP)

An RFQ is used when the Customer understands the business problem and what's needed to solve it, including specifications and procedures. Price is usually not the determining factor in the evaluation of an RFP. Factors such as quality, service, and reputation are also taken into consideration.

Request for Quote (RFQ)

An RFQ is generally used to obtain pricing, delivery information, terms and conditions from suppliers. In this case, requestors have a clear understanding of what they need, including requirements and specifications. To procure the exact product or service needed, the Customer provides the Supply Chain Management Unit with as much information as possible, including complete specifications, quantities, and delivery schedule.

The common thread between all three types of "RFX" documents is that the Customer/Government Entity is not obliged to appoint a service provider on the results from issuing any of these requests. The best way to know that a tender award will be made is when you respond to a formal quotation or a competitive bid.

Normally a formal quotation will be for goods or services with a value of between R30,000-00 and R200,000-00 and a competitive bid will be for goods or services with a value exceeding R200,000-00.

To learn all you need to know to respond to tenders correctly, and hopefully successfully attend our How-to-Tender workshops. Visit our website www.how2tender.com to find out more and to register. For more information on the tender courses please email Werner at werner@how2tender.com.

This article was written by Werner van Rooyen, Director of HowToTender (Pty) Ltd. which specializes in tender consulting and tender training.

Title Closing Date Tender No.
Appointment of a panel of contractors to provide desludging services of VIP toilets and septic tanks at Dr JS moroka Local Municipality for a period of 36 months (as and when required). 2018-09-19 12:00 69518
Appointment of a professional service provider to provide a project management system for a period of 36 months. 2018-09-19 12:00 51574
The implementation of Maths and Science programme. 2018-09-21 10:00 CORP4540
Design, Manufacture and Install VPI Curing Oven for Transnet Engineering, RM Business. 2018-09-25 10:00 TE18-SRX-1DF-06267-CIDB
Tender for design, manufacturing, supply, installation, commissioning, and putting into service the direct virus testing facility (with lab testing equipment) at Rand Water Vereeniging Analytical Services (Minimum CIDB Grading 6GB / 5GB PE) 2018-09-21 12:00 RW01396/17
Supply and delivery of Traffic Patrol Vehicles (Light Delivery Vehicles 2018-09-07 11:00 BV 723/2018
Supply Surf boards 2018-08-22 12:00 GG11900274
Service of Gallery Analyser for Breede Valley Municipality’s Laboratory. 2018-08-28 11:00 286703
Supply: Medals 2018-08-27 12:00 GG11900277
Supply Sport equipment 2018-08-27 12:00 GG11900276
Procurement of grade 11 MST camp: Academic and role modeling 2018-09-03 12:00 CS/SCM/COO/MST/R18-19/26
Appointment of an accredited external water testing laboratory for AgriZone for a period of three years. 2018-09-14 11:00 DTP/RFP/11/AGZ/06/2018
Exterior painting at Wellington, Civic Centre 2018-08-30 10:00 BK016 (DIC0025814)
Procurement of grade 8 and 9 MST camp: Academic and role modeling 2018-09-03 12:00 CS/SCM/COO/MST/R18-19/27
The Department of Public Enterprises invites service providers to submit a proposal to assist the Department to manage and render an in-house canteen service. 2018-09-03 11:00 DPE 6/2018-2019
New vinyl floor covering at Soup Kitchen 2018-08-30 10:00 BK015 (DIC0025816)
Civil Engineering Services for the implementation of Rea Vaya Phase 1C Greenstone Bus Terminal for design review and contract administration. 2018-09-14 12:00 JDA/GT001
Supply: 6 each x vibration detection sensor iq2400s5-m12c 2018-08-27 12:00 GD11900208
Precinct Study, Noorder Perel, Paarl 2018-08-23 10:00 DIP0001964
Supply Equipment for metro farmworkers. 2018-08-22 12:00 GG11900273

Pages

7 Disadvantages of Competitive Bidding

The bidding process can be very tedious sometimes. Here are some of the disadvantages of the bidding process.

1.    Leading suppliers may not tender

In Australia, for example, government procurement guidelines only allow suppliers who actually tender to be considered for a procurement decision. If the leading supplier or suppliers do not tender, the purchaser can only consider bids from suppliers who do tender. If leading suppliers are not considered, the purchaser may end up buying inferior product or service... Read More

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