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 of Information Technology Hardware and Peripherals. 2018-10-05 11:00 SAMRC/ITHP-ITSD/2018/10
Tenders are invited for training per delegate for ( Renewal of Hydraulic platform truck Operation Certficate) per Delegate 2018-09-27 11:00 CSQ09181415
Short Term Insurance Broking. 2018-10-08 11:00 REF: NWPB/RFT/NWPBINS/003/2018
Tenders are invited for training per delegate. ( Hydraulic platform operation certificate) 2018-09-27 11:00 CSQ09181415
Tenders are invited for ( Renewal of Expired Crane Truck Operation certificate) per Delegate 2018-09-27 11:00 CSQ09181415
Tenders are invited for Training per Delegate (Crane truck Operation certficate) 2018-09-27 11:00 CSQ09181415
Provision of build environment professional services for The Independent Development Trust (IDT). 2018-10-08 12:00 IDT-MP/DOE/7SCHOOLS/2018
Supply and deliver display case with 30mm wood base 700x150x800mm. 2018-09-20 11:00 GQ09181938
Supply and deliver 400x400x100mm 6mm clear perspex box. 2018-09-20 11:00 GQ09181938
Supply and deliver 500x400x300mm 6mm clear perspex 2018-09-20 11:00 GQ09181938
Provision of Travel Management Services to Overberg Water for a period of 36 Months. 2018-10-08 12:00 RFQ OW-440/2018/19
Supply and deliver 600x400x300mm 6mm clear perspex box. 2018-09-20 11:00 GQ09181938
Supply and deliver 700x400x300mm 6mm clear perspex box. 2018-09-20 11:00 GQ09181938
Supply and deliver 800x400x300mm 6mm clear perspex box. 2018-09-20 11:00 GQ09181938
Mowing of lawn once a month - Worcester parks - from September till March 2019 2018-09-25 11:00 287584
Refurbishment of OHE Demag crane at the Transnet Freight Rail Bellville container terminal (Belcon). 2018-10-09 10:00 BLE 5086/2018
Integrated Data Acquisition System. 2018-10-09 10:00 TE18-KLP-09B-06894
NDPW: Supply and delivery of cleaning materials and equipment's as and when needed for a period of 36 months at 49 Fennel road. 2018-10-09 11:00 JHB.18/14
Supply and deliver 2000mm x 1300mm x 3mm thick komatex boards - full colour digital printing + eyelets @ 500mm increments 2018-09-20 11:00 GQ09181940
Supply and deliver 2900 x 1300mm x 3mm thick komatex boards - full colour digital printing+ eyelets @ 500mm increments 2018-09-20 11:00 GQ09181940

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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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