Differences Between a Request for Proposal & a Request for Price Quotation
Request for proposals (RFPs) and request for quotes (RFQs) are required in both public and private sectors, though RFPs are more formal than RFQs. A "pre-qualifier" for either an RFP or an RFQ is known as a request for information (RFI). In some cases, a company or the government may distribute a RFI to determine whether or not a vendor shall receive an RFP or an RFQ. A vendor is the person or party responsible for providing products or services for an RFP or RFQ.
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Time Requied for Document Preparation
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One difference between a request for proposal (RFP) and a request for quote (RFQ) is that more time is required to prepare an RFP than a RFQ. Request for proposals list requirements of products or services, such as function, work flow, integration specifications and business goals, so that vendors will answer the proposal--explaining in great detail how the requested product or service will be accommodated. Requests for proposals include a scope of work (SOW), pricing information, price quotes, contract terms and conditions, and detailed reference information. The scope of work describes tasks, products, services and even external factors that may not be required to satisfy the proposal.
Features
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A request for proposals is developed when an organization has discovered a need to resolve an issue, without a specific plan for the way that the need should be fulfilled. In this particular situation, an organization allows vendors to express individual creativity when presenting their products or services as a response to a request for a proposal. In contrast, a request for quotes is developed when an organization has determined an exact product or service required to resolve its need. This makes it easier to focus upon the vendors' level of experience and also the price that vendors want to be paid for their products or services.
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Example in IT Industry
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An information technology (IT) department may need web-based email, a specific operating system and a database. Once these requirements are expressed in a request for proposal, vendors respond by detailing how they would accommodate the information technology department. The solutions presented by vendors usually vary--as some solutions may require less time, less effort and less money than others. These savings would be beneficial to the information technology department in this example.
If an IT department has determined that it needs a Windows Vista operating system while connected to Windows Virtual Server 2005, for example, this firmly stated need would be expressed in a request for a quote.
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References
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