Request for Proposal / Request for Quotation
RFP-Request for Proposal
A RFP is normally used when a specification or statement of work for services has not been fully developed or you do not know the best possible solution to the problem. Normally, you:
- Include what your objective is and as much detail as possible about the current situation.
- Ask potential vendors to submit their recommendations for solutions to your problem.
When creating an RFP, you may or may not wish to include a request for pricing. Pricing may only be appropriate after you have determined which of many possible alternatives is the preferred solution.
RFQ-Request for Quotation
You would want to request for a quotation if:
- You are sure of the product or service you need and there are several potential capable suppliers available.
- You are asking for specific prices, terms, delivery dates and other conditions from all suppliers for substantially the same good or service.
There are countless variations of RFP’s and RFQ’s, each uniquely suitable for a particular good or service. Procurement can help create or fine tune either for you. The more specific information you are able to provide regarding your needs, the more worthwhile the proposal or quote will be.