Do you the difference between IFB, RFP, RFI and RFQ? Each of this is the type of government Solicitation but they differ significantly in terms of What is the request? And what is required from you? This article specifically focuses on what each of this term actually means and in what way they differ from each other.
Request for Information ( RFI): This is a standard business process, whose purpose is to collect written information about the capabilities of various suppliers. Normally it follows a format that can be used for comparative purposes. In addition to gathering basic information, an RFI is often used as a solicitation sent to a broad base of potential suppliers for the purpose of conditioning suppliers’ minds, developing strategy, building etc.
Request For Proposal (RFP): A Request for Proposal is a type of bidding solicitation in which a company or organisation announces that funding is available for a particular project or program, and companies can place bids for the project’s completion. A request for proposal typically includes background on the issuing organisation and its line of business. The request sets out specifications describing the solution it seeks and evaluation criteria disclosing how proposals are graded. Requests for proposals may include a statement of work describing tasks to be performed by the winning bidder and a timeline for providing finished work.
Request for Quotation ( RFQ): A request for quote (RFQ) is a type of procurement solicitation in which a company asks outside vendors to offer a quote for the completion of a specific task or project. An RFQ is usually the initial step for submitting an RFP, in which the bidders are asked to offer a more comprehensive price quote. However, RFQs may be submitted as an attachment to an RFP. An RFQ is typically used when products and services are standard or off-the-shelf, which allows the soliciting company to compare the various bids easily.
One thing should be noted is A quote received in response to an RFQ is not an offer, and the government cannot accept it to create a binding contract. The purchase order is an offer by the government to a vendor to purchase goods or services according to the particular terms and conditions. A contract is awarded when a vendor accepts the offer.
Invitation for Bidding (IFB): Companies and organisations give in-depth specifications of projects and invite contractors to bid for their various projects. Because the focus of the invitation for bid is on the bidder’s price for project completion, there is less emphasis on the bidder introducing its own ideas. This separates the IFB from a request for proposal (RFP).