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.
Supply & delivery of single step brass reducer (reducing sets) 2018-08-23 10:00 DIC0025709
Supply: Lubricants 2018-08-27 16:00 GC11900093
Supply 20 kilogram x nutrient mix 459q 2018-08-22 16:00 GC11900095
Supply: Medical oxygen 2018-08-27 15:00 GF11900114
Supply & delivery of pine rough shutterply pine and chipboard 2018-08-23 10:00 DIC0025681
Request for Proposals: Revenue enhancement strategies 2018/2019 2018-08-29 11:00 ELM 15/2018
Request for proposal for liquid oxygen storage & supply of Liquid Oxygen (LOX) chemical for Magalies Water Klipdrift WTW for a period of five (5) years. 2018-09-17 12:00 RFP/MW/147/2018-19
Provision of Sootblowers, Flue Gas Cleaning & Smoke Stack Maintenance Services. 2018-09-17 14:00 MED00132Gx
Supply and Delivery of Archives Filing System and Binding Tapes 2018-08-24 11:00 11105782
Renovation of DC Office Building at Epping Fire Station (Training Centre). 2018-08-24 14:00 SL1190025A
Supply and deliver 2terbyte pocket HD - WD or approved equal 2018-08-27 11:00 GQ08181888
Supply and deliver professional video camcorder tripod with fluid drag head - BLACK. 2018-08-27 11:00 GQ08181888
Supply and deliver 500mm /1000mm F/8 telephone lens -Eos T 51i or approved equal 2018-08-27 11:00 GQ08181888
Supply and deliver Canon EOS 6D Mark 11 DSLR with 24-70mm f/4L IS USM Lens 2018-08-27 11:00 GQ08181888
Supply and deliver interactive whiteboard and stand 2018-08-27 11:00 GQ08181888
Supply and deliver battery powered portable 12" PA system -JBL or approved equal. 2018-08-27 11:00 GQ08181888
Supply and deliver cordless microphone PGX 24 E - Shure Sm 58 or approved equal 2018-08-27 11:00 GQ08181888
Supply padded jackets 2018-08-30 10:00 GA11900161
Supply Medical supplies 2018-08-27 15:00 GF11900112
Supply and delivery of SO3 catalyst and ceramic balls spares on an “as and when” required basis for a period of 5 years to Kriel Power Station. 2018-09-18 10:00 MPGXC005283

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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