Issue Date: 
Tuesday, October 11, 2016

Difference Between a RFI, RFQ and RFP

We are regularly asked, ‘what is the difference between a Request for Information (RFI), Request for Proposal (RFP) and Request for Quote (RFQ)’. Below is an explanation of these three requests.

According to the Government, the differences between RFQ’s, RFI’s and RFP’s are as follows:

“RFx is an abbreviation used to refer to a group of ‘Request For…’ documents, used to solicit responses of various types from suppliers. The three documents used in this group include Request for Information (RFI), Request for Proposal (RFP) and Request for Quote (RFQ).

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 define the problem;
  • solicit external expertise regarding how to solve the problem;
  • study proposed solutions.

Request for Proposal (RFP)

An RFP 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 you need, the Customer provides the Supply Chain Management Unit with as much information as possible, including complete specifications, quantities, and delivery schedule.”

The common threat between all three types of requests is that the Customer or 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 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.

Visit our website www.how2tender.com to find out more.

Title Closing Date Tender No.
Supply: Fasteners 2017-08-21 15:00 R081800131
Supply: Fasteners 2017-08-21 15:00 R081800130
Mowing of Granger Bay & Buitengracht, Cape Town 2017-08-28 09:00 W101800123
Stakeholder Engagement – Street People Sound Equipment 2017-08-18 09:00 W071800082
Cleaning Services for the CCT X-Ray Department 2017-08-21 09:00 W071800083
Minimum requirements: ECO (Environmental Control Officer) at Kloof ext. 15 and 21 2017-08-30 11:00 7H‐34339
Supply: Hth chips 2017-08-23 16:00 R061800109
Minimum requirements: water quality monitoring at kloof ext. 15 and 21 2017-08-30 11:00 7H‐34428
Suply: Sugar soap; 500g 2017-08-18 16:00 R061800111
Horticultural Maintenance, Makhaza Sports Grounds. 2017-08-28 12:00 W101800167
Supply: Sodium carbonate;soda ash dense;25kg 2017-08-23 16:00 R061800110
Supply: Plumbing & hardware supplies 2017-08-25 15:00 R101800124
Supply: Plumbing & hardware supplies 2017-08-25 15:00 R101800122
Supply: Plumbing & hardware supplies 2017-08-21 15:00 R101800123
Supply: Plumbing & hardware supplies 2017-08-21 15:00 R101800120
Supply and delivery hardware, hand tool, breaker 80mm chisel for a period of six months 2017-08-23 11:00 7M.34479
Supply: sand paper 2017-08-21 15:00 R101800128
Supply: 50 each x sand paper; glass; coarse 2017-08-21 15:00 R101800126
Supply: Plumbing & hardware supplies 2017-08-25 15:00 R101800125
Supply: Info board 1500x1200 white 2017-08-21 12:00 R071800084

Pages

Functionality and Tenders

In all competitive bids (tenders) you as the bidder will have to respond to Functionality. You will need to score a set minimum number of points, measured as a percentage, on Functionality of a competitive bid (tender) in order to advance to the next phase of evaluation in the tender process.

Usually Organs of State evaluate competitive bids (tenders) as follows:

  • The tender response is evaluated on Functionality where the bidder must score points out of a maximum of 100 points.
  • A threshold of between 65 to 75 out of 100 points... Read More
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