Differences Request for Quotation (RFQ) and a Request for Proposal (RFP)

Q: The Differences between a Request for Quotation (RFQ) and a Request for Proposal (RFP) in INGOs

Request for Quotation (RFQ) and Request for Proposal (RFP) are both procurement documents used by organizations to solicit offers from potential suppliers or service providers.

Purpose:

RFQ (Request for Quotation): RFQ is used when an organization needs a product or service and is primarily focused on price and the terms of supply. It's often used for standards, where the organization is looking for the best price from potential suppliers.

RFP (Request for Proposal): An RFP is used when an organization needs a service used by organizations with complex needs. RFPs gather detailed information about potential suppliers, including their pricing, approach, capabilities, and qualifications. This type of procurement process is typically used for projects or services that require customization, special expertise, or creative solutions.

Content:

RFQ: RFQs typically focus on specific product or service requirements, price, delivery terms, and basic terms and conditions. They are concise and straightforward, in obtaining competitive pricing.

RFP: RFPs are more comprehensive and may include detailed project requirements, evaluation criteria, timelines, and requests for a more in-depth proposal. RFPs often require suppliers to provide information about their qualifications, experience, and approach to solving the organization's problem.

Evaluation Criteria:

RFQ: The primary evaluation criteria in an RFQ are typically price and delivery terms. The organization primarily seeks the best value for a standard product or service.

RFP: In an RFP, the evaluation criteria can include a Statement of work (SOW), Terms of reference (TOR), technical capabilities, past performance, experience, proposed solutions, pricing, and other factors. The selection is based on a combination of technical and financial criteria.

Supplier Interaction:

RFQ: A purchase order is issued against RFQ.

RFP: A service agreement is issued against RFP.