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.
Provision of Events Services: Municipal Year-End Function 2017-12-21 13:00 SCM/2018/177/CORP
Supply: Building material 2017-12-18 14:00 GE11800903
Supply: Extruder 2017-12-21 14:00 GE11800905
Supply and delivery of loud hailers to ZDM Vehicles 2017-12-19 12:00 ZDMQ 0403/12/2017
Supply and delivery of Stationery 2017-12-19 12:00 ZDMQ: 0404/12/2017
Training on Demonstrate Knowledge of Waste Water Pipe Unblocking and Maintenance 2018-01-11 12:00 ZDMQ0405/12/2017
Supply: Hardware items 2017-12-15 12:00 GG11800418
Training on Construct Water Reticulation Concrete Works 2018-01-11 12:00 ZDMQ0406/12/2017
Supply Hardware items 2018-01-15 12:00 GG11800417
Training on applying Health and Safety Practices in the water sector for process operations 2018-01-11 12:00 ZDMQ0407/12/2017
Supply Hardware items 2018-01-15 12:00 GG11800416
Supply strapping - material: grade 304 stainless steel 2018-01-15 12:00 GG11800419
Training on Conducting a workshop on Job Evaluation Systems, Job Descriptions Alignment with the Organogram and Change Management 2018-01-05 12:00 ZDMQ0408/12/2017
Supply: Water distribution material 2017-12-21 14:00 GE11800898
Electrification of 136 Households in Nuresh A and B Villages 2017-12-29 12:00 MATAT 2017/2018-28
Supply: Engineering materials 2017-12-18 14:00 GE11800901
Provision of Website Hosting, Development, Redesign and Maintenance Services 2018-01-09 12:00 MATAT 2017/2018-31
Provision of Training on Construction Roadworks (National Certificate NQF Level 2- Unit Standard 24133) for 10 municipal employees 2017-12-29 12:00 MATAT 2017/2018-32
Supply polymer grids, covers and frames 2017-12-21 14:00 GE11800902
Provision Electronic Document Management System 2017-12-29 12:00 MATAT 2017/2018-27

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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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