Commonly Used Documents in Procurement Processes

RFQ (Request for Quotation)

• Purpose: An RFQ is used to obtain pricing information and terms from suppliers for specific products or services.
• Details: It typically includes a detailed list of the products, services, quantities, and any other specifications required. It is mainly focused on price and terms.
• Use Case: RFQs are most suitable when the organization knows exactly what they need, and the primary variable is the price.
• Outcome: Suppliers respond with their prices, and the buyer can compare and select based on cost.
• Timeline for Response: RFQs generally have shorter timelines, typically ranging from a few days to a week, depending on the complexity of the items or services.
• Communication of Decision: After reviewing responses, the buyer typically notifies suppliers of the outcome through formal communication, often via email, indicating whether their quote was selected or not.

RFP (Request for Proposal)

• Purpose: An RFP is used to solicit detailed proposals from suppliers on how they would meet a specific need or solve a particular problem.
• Details: RFPs usually include background information on the project or requirement, evaluation criteria, and desired outcomes. It asks suppliers for their approach, timeline, pricing, and sometimes past case studies or references.
• Use Case: Suitable when the organization needs a solution to a problem but is open to suggestions on how it can be solved. RFPs are often used for more complex projects.
• Outcome: Suppliers submit proposals that detail their methods, timelines, and pricing. The buyer evaluates based on various factors, not just price.
• Timeline for Response: RFPs usually have longer response times, ranging from a few weeks to a month, allowing suppliers sufficient time to prepare detailed proposals.
• Communication of Decision: After evaluation, the buyer informs suppliers of their decision, often providing feedback on the reasons for selection or non-selection. This is usually done through formal letters or emails, especially for shortlisted suppliers.

RFI (Request for Information)

• Purpose: An RFI is used to gather general information from suppliers about their capabilities, products, or services.
• Details: It is often less specific than RFQs or RFPs and is designed to help the organization understand the market and develop a list of potential suppliers.
• Use Case: Useful in the early stages of a project when the buyer wants to explore different options or learn more about available solutions.
• Outcome: Suppliers provide information about their offerings, which helps the buyer refine their requirements or determine the next steps.
• Timeline for Response: RFIs generally have flexible timelines, typically ranging from a week to two weeks, depending on the scope of information requested.
• Communication of Decision: RFIs are exploratory, so while there may not be a formal decision communicated, buyers often follow up with suppliers who meet their criteria to express further interest.

RFT (Request for Tender)

• Purpose: An RFT is an invitation for suppliers to submit a bid to supply goods or services, usually in response to a well-defined need.
• Details: It includes detailed specifications, terms and conditions, and is generally focused on compliance and cost.
• Use Case: Commonly used in the public sector or for large projects where regulatory compliance is essential.
• Outcome: Suppliers submit tenders (bids), and the selection is usually based on price, compliance, and ability to meet requirements.
• Timeline for Response: RFTs often have longer timelines, generally ranging from one month to several months, due to the complex nature of the submissions and regulatory requirements.
• Communication of Decision: The buyer typically notifies all participating suppliers of the outcome, sometimes publishing the results publicly, especially in government procurements. This can include detailed feedback and reasons for the selection.

EOI (Expression of Interest)

• Purpose: An EOI gauges supplier interest in a potential project or contract.
• Details: It is usually a preliminary step used to determine if suppliers are interested and capable before proceeding to a more formal RFP or RFQ.
• Use Case: Appropriate when the buyer wants to see how many suppliers are interested and to create a shortlist.
• Outcome: Suppliers express interest, which helps the buyer assess market interest and plan the next steps.
• Timeline for Response: EOIs generally have flexible timelines, often a week or two, as they are not formal bids but indications of interest.
• Communication of Decision: Buyers typically follow up with interested suppliers, informing them if they have been shortlisted for further consideration.

Summary of Differences:

• RFQ: Focused on price for specific items/services.
• RFP: Requests detailed proposals for solving a problem or providing a solution.
• RFI: Gathers general information and insights.
• RFT: Solicits formal bids with a strong emphasis on compliance.
• EOI: Assesses supplier interest and capabilities at an early stage.

Each document serves a unique purpose, with timelines and communication methods tailored to the level of detail and complexity involved. These differences help streamline the procurement process and enable effective supplier selection based on the buyer's specific needs.