Request for proposals

 

What are the four most commonly used types of procurement documents?

1. Request for information (RFI)

This is useful for buyers who are trying to learn about new products, services, and suppliers. This sourcing request is a way for buyers and suppliers to communicate clearly. The sourcing request informs suppliers about the purpose of the request and the type and depth information that the buyer requires. It also tells sellers what the RFI is asking for. RFIs should be informal and open-ended.

2.
Request for proposals (RFP)

An RFP is formalized more than an RFI. It's used when the buyer has a clear understanding of the problem and is willing to allow the supplier to suggest a solution. However, the buyer might need multiple rounds of clarifications due to the higher variability of possible solutions. RFPs generally contain similar information to RFIs. These include a detailed description and criteria for evaluating the proposal, as well as the follow-up steps after the information has been submitted. It is important that agencies of government are not involved in public affairs or the administration of the state. They must issue RFPs only and be fair.

Request for quotation (RFQ)

An invitation for bidding (IFB) is an RFQ. A company issues an RFQ to request quotations from suppliers for the project they are tendering for. Buyers would know exactly what they want and will be able to choose the most cost-effective solution. Although price is still the most important factor in a buyer's decision-making, other factors like supplier reputation or good-to-have features can also play a role. These sourcing requests can only be issued to companies the buyer trusts.

4. Request for Tender (RFT)

RFTs and ITTs are often formal sourcing requests. They are more common in public procurement. It is often used for high-value procurements where extra effort in running a tender could result in substantial cost avoidance later. These tenders are often complex.

Many buyers who post RFTs do so to comply with the protocol. They may be able to identify the person they wish to tender the tender to, as the number of options is so limited.