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How to Edit Your In Tender Number: Tender Date: Tender Closing Date Tender Closing Time Rfq Number: 3 Online

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PDF Editor FAQ

What are the similarities and differences between an RFI, an RFP, and an RFQ?

I am assuming that I have the same understanding as you of the definitions. However these may differ in some countries - I am Australian.RFI = Request for InformationRFP = Request for ProposalRFQ = Request for Quotationand lets add:4. RFT = Request for Tender.In fact once you define them then their meaning is self evident.Firstly 1 and 2 do not seek formal offers where 3 and 4 do.1 is simply what it says and is a means of market research although it is still an informal approach to the market.2 is a more in-depth approach to the market - it too is seeking information and may or may not including pricing information - however it is not an offer and cannot be accepted as it stands.1 and 2 can be open/public requests ie to the world at large and advertised - (common in the public sector) or to a limited number of suppliers. They are seeking information.3 RFQ is an approach to the market in which offers are actually sought and one the offers may be subsequently accepted to form a contract. These also can can be open/public requests and advertised although usually a RFQ is interpreted as a fairly simple procurement exercise and advertising may not be necessary.In the public sector this can be different - common sense is often put aside to rules and regulations. For example public tenders (advertised by whatever medium - usually in newspapers or these days on-line) or quotations may be related to an overall monetary value eg $100,000. However I have done multi-million standing offer arrangements for things like Eggs for Defence where there was only one source of supply - simple job but because of the value, Public tenders were invited. Although I must also say the Certificates of Exemption were available as well. This is just an example.Some of the things mention below in RFTs may apply to RFQs as well.For the sake of completeness, I am including RFTsRequest for Tenders (RFTs) are more detailed approaches to the market and are usually Public (advertised). However tenders can also be sought from a limited number of suppliers in certain cases. Simply put they are usually for high value, complex items or services.They should have the following structure (although as we know nothing is fixed in concrete in procurement - or treat each case on its merits):Conditions of Tender: Instructions on how to submit the tender, the closing date place and time, whether or not late tenders will be considered, how many copies, whether or not electronic tenders are accepted, Scope of the Contract, Commercial evaluation criteria etc The scope should be up front in the RFT so that potential suppliers can assess quickly whether or not they can participate - save them a lot of reading ;)Conditions of Contract: The terms and conditions of any resultant contract that will apply to that contract.Details to be completed by Tenderers: Pricing details, warranty, delivery time, schedules of compliance with commercial and technical conditions, questions about anything necessary to evaluate the offer in accordance with the selection criteria etc etcThe Specification: Actual technical/functional/performance details of the requirement. Technical evaluation criteria and whatever other things which are necessary to define the requirement. Technical specifications are usually needed when the item is unique to you organisation. Functional and performance specs are better used for off the shelf type items. I remember that many years ago there were 3 drawings and a specification for Boards, Cutting, Bread LOL which were very good bread boards and you could drive a tank over them but that quality was not really necessary for the purpose.Again this is very brief and broad but perhaps you will get the general gist. I have oldtimers I am sorry but if I remember anything else or I get asked any questions, I will try to respond.

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