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 and Deliver of Custon Rescue Paddle Board 2018-12-14 11:00 GQ12182004
Tenders are invited for the maintenance of ABB SCADA SYSTEM 2018-12-14 11:00 CSQ12181503
Rental of landfill compactor for December 2018 and January 2019 2018-12-18 11:00 345678
Advertisement for suitable Suppliers and Service Providers to apply and become part of Save the Children South Africa’s Supplier Database 2019-02-15 12:00 No reference number
Supply & deliver Decalit Chokes Oglis 0.5,100watt,B80 230volt for 1000watt High Pressure Fittings 2018-12-14 11:00 SQ11181321
Demolition of Redundant Structures Citywide 2019-02-08 10:00 196Q/2018/19
Supply & deliver Liquefied Petroleum Gas in 9kg cylinders,to S.A.B.S 690 specifications 2018-12-14 11:00 SQ11181321
Supply & deliver Boxes With Lids 455 L X 340 W X 290mm H Doubled Walled on sides with handles 2018-12-14 11:00 SQ11181321
Supply & deliver Envelopes Manilla With Window Face 220mm x 110mm. Straight flap cut type KE.80/100gm. 2018-12-14 11:00 SQ11181321
First Line Response- Distribution Area East, North and South 2019-02-08 10:00 192S/2018/19
Term Tender for Supply, Installation and Retrofitting of Water Efficient Technologies Citywide 2019-02-11 10:00 197Q/2018/19
Supply & deliver Truck Tyres 12R22.5 2018-12-13 11:00 SQ12181325
Supply & deliver Couplings Rubber DISC F-60 tyre 2018-12-13 11:00 SQ12181325
Supply & deliver Pipe,Coil Safe 15mm X 50mtr 2018-12-13 11:00 SQ11181312
Supply & deliver Electrical Spring Connectors Part no. 200665 Blue & Grey connectors.Scotc hlok 3M or approved equal 2018-12-13 11:00 SQ11181312
Tenders are Invited for the Servicing and Issue of Safe Lift Certificate for 19 Vehicle Lift Hoist 2018-12-14 11:00 CSQ12181507
Supply and delivery of heavy duty mobile vehicle 55 metre aerial firefighting/rescue turntable ladder for the fire and rescue services 2019-02-11 10:00 204G/2018/19
Supply and delivery of various articles of human protective clothing for use in structural fires by the fire and rescue service 2019-02-11 10:00 202G/2018/19
The supply of aerial support to the fire and rescue service during high fire season 2019-02-12 10:00 207G/2018/19
Supply and delivery of various firefighting foam concentrate for the City of Cape Town 2019-02-12 10:00 205G/2018/19

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Advantages and disadvantages of Consortiums

Consortiums are often considered as entities to use when responding to tenders in South Africa. The question that arises is whether to use a Consortium or a Joint Venture when responding to a tender. To help you with this we have compiled a list of advantages and disadvantages for both Consortiums as well as Joint Ventures. In this article we list the advantages and disadvantages of Consortiums. Look out for the same article on Joint Ventures.

Consortiums Advantages:

  • Easy to establish as there are no formal procedures... Read More
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