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.
Loligo Squid required as Bait for linefish January Cruise and must be delivered end January. 2019-01-25 11:00 RFQ000310
Hiring and delivery of refuse skips 2019-01-24 12:00 264/2018/19
Replacement of Fire Hydrants and Associated works for Brenton-on-Sea and Brenton-on-Lake Areas 2019-01-29 12:00 268/2018/19
Removal of furniture for: Ms Lethabo Koopa from Lebowakgomo to Knysna 2019-01-24 12:00 RFQ 273/2018/19
Presentation of a Skills Programme: Construction Procurement. 2019-01-24 12:00 266/2018/19
Supply, delivery and installation of office furniture 2019-01-24 12:00 269/2018/19
Removal of old and the supply and fitting of new pre-cast walls at the Electrical Engineering offices in George Rex Drive. 2019-01-25 12:00 265/2018/2019
The appointment of a panel of professional electrical service providers for a period of 36 months on as and when required basis 2019-02-15 11:00 RWCLM-3/002/2018/2019
Appointment of supplies to supply and deliver L/V and M/V electrical stock items to the main stores on as and when required basis for a period of 36 months 2019-02-15 11:00 RWCLM-3/004/2018/2019
The supply and delivery of digital two way radios for a 36 months period on as and when required (also included is the supply and installation of a digital repeater) 2019-02-15 11:00 RWCLM-3/005/2018/2019
Appointment of a panel of service providers to supply, install and repair 30m high mast poles on as and when required for a period of 36 months 2019-02-15 11:00 RWCLM-3/003/2018/2019
Appointment of a panel of estate agents for the selling immovable properties for City of Mbombela 2019-02-18 11:00 183/2018
Appointment of a Service Provider to Conduct Mbombela CID By-Law Review 2019-02-18 11:00 196/2018
Appointment of a Transactional Advisor and Developer for Public Works Precinct/Rugby Stadium 2019-02-18 11:00 193/2018
Panel of Consultants to provide Professional Engineering Services for the period of 3 Years 2019-02-18 12:00 IHLM/81/01/2018-19/TS
Building and Site Works including Electrical Works for the Proposed New Self Storage Facility at Doornrandjies, Centurion AH, Gauteng for Messrs. “The Storage Place” a division of Trinity Property Investment 2019-02-20 12:00 STR (GAU) 01/19
Provision of professional Services: Specialist Required For The Integrity Management of Groundwater Monitoring Infrastructure At Solid Waste Disposal Facilities. 2019-02-18 10:00 2016C/2018/19
Supply and delivery of tactical gear and equipment for Safety and Security Directorate 2019-02-18 10:00 222G/2018/19
Supply and delivery of Submerged Scraper Conveyor items for a period of 5 years for stock replenishment 2019-02-18 10:00 MPGXC005435
Appointment of a service provider for Operations and Management of Barberton Waste Disposal Site for The City of Mbombela 2019-02-18 11:00 1/2019

Pages

10 Features of a good Joint Venture Agreement

By W van Rooyen

www.howtotender.co.za

A Joint Ventures is a good business idea to compete for tenders if one does not have all the necessary expertise that are required from a specific tender. The thing to remember though is that you must have a solid Joint Venture Agreement in place for your Joint Venture. A good, rock solid Joint Venture Agreement will protect the participants to the Joint Venture.

 Here are 10 features that any good Joint Venture Agreement... Read More

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