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.
Supply and delivery of satel anntennas. 2018-07-24 11:00 GK11900025
Supply and off-loading of 5 ton sudfloc 3860 for Vaalbank water treatment works.. 2018-07-23 12:00 Q12.07.18
Supply, Delivery and Off-Loading of Twelve (12) Ton Sudfloc 3860 for Vaalbank Water Treatment Plant In Middelburg (Steve Tshwete Local Municipality) 2018-07-23 12:00 Q13.07.18
Hire of sit-on roller (3.500KG) 2018-07-24 09:00 WJ11900029
Supply diamond and chisel pickhead. 2018-07-19 12:00 GD11900067
Supply Tools and equipment 2018-07-19 12:00 GD11900068
Supply, Deliver & Install Various Steel Works 2018-07-23 11:00 11080261
Construction of Bilanyoni Sportfield. 2018-08-07 12:00 EDUMT10/2018/19
Appointment of lead arranger for the establishment of Domestic Medium Term Note (DMTN) Programme for the eThekwini Municipality for 36 months 2018-08-10 12:00 1F-38000
Appointment of a Service Provider for Provision of internal Audit Services for 3 Years. 2018-08-08 11:00 Corp/2018/05
Provision of human settlement delivery management system for a period of 36 months 2018-08-10 12:00 1H-37360
Appointment of a panel of technical skills program service providers: Plumbing, painting, boiler making, welding, carpentry, fitting and turning, diesel mechanic and plating for a period of 36 months 2018-08-10 12:00 1Z-37586
Jozini Regional Water Supply Scheme - Phase 1A - 2: Construction of 5.6km long 700/200mm Diameter Welded Steel Pipelines & two 50kl Elevated Tanks. 2018-08-10 12:00 SCMU 006/2018/2019
Construction of civil infrastructure in Umlazi, Section BX1 2018-08-10 12:00 3V-17925
Supply: Footwear 2018-07-31 10:00 GA11900056
Supply, delivery and offloading of 11kV multi-tap current limiting reactors during a 36-month period 2018-08-10 12:00 E.9599
Supply and delivery of Agrivator Turf Equipment 2018-07-27 12:00 MMS-453
Supply Gloves 2018-07-31 10:00 GA11900057
Supply Clothing products 2018-07-31 10:00 GA11900058
Provision of Repairs and Overhaul work of Mango GTCP131-9B for a period of 3 years. 2018-08-10 12:00 FLE CON 006/2018

Pages

Tender adjudication process

The SBD/WCBD6.1 document must form part of all bids invited.  It contains general information and serves as a claim form for preference points for Broad -Based Black Economic Empowerment (B -BBEE) Status Level of Contribution, and explains how tenders or bids are decided.

The document says:

  • The bidder obtaining the highest number of points will be awarded the contract.
  • Preference points shall be calculated after prices have been brought to a comparative basis.
  • Points scored will be rounded off to two decimal places... Read More
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