Question

Explain how the request for quote and request for proposal processes work. Be sure to indicate how they differ and how a purchasing group uses each

Answer 1

Request for Proposal

Request for Quotation

Request for proposal is a typically Procurement Request, is also regarded as request for Tender, with this Request, an Organization can ask for detailed proposal on how the work will be performed and accomplished, who will resume and Execute the work, what about the pricing for that proposal for work Package, how is the experience of supplier company or vendor company to pursue such work, Further, request for Proposal will be treated as a document to take out bids from potential vendors, further RFP document will clearly specify the criteria of Evaluation of that work package, this Procurement document is commonly used for Complex IT project, again, here contract type is Cost Reimbursable, and procurement statement of work is Performance or Functional Type, The entire Request for Proposal steps include like project planning, Drafting RFP, Issuing RFP, then Reviewing proposal and awarding contract,

Request for Quotation or RFQ is typically procurement document which request for providing quote per hour, quote per Item, Quote per meter, or any other unit of Measure, so this RFQ procurement document basically will elicit quotes for products, Services and results, further, we can receive list of prices per unit of measure basis from a vendor, when we provide them such RFQ, it is further used for easy IT projects, the contract type for this procurement document is Time and Material type and Procurement statement of work could be performance, functional or design type, The entire RFQ process include Preparing the RFQ Document, Create the list of vendor – Type open or closed, Distribution of RFQ, answering various question as raised by vendor, maintain and observe the confidentiality, review the responses as received from vendor, comparison of Bids and award the contract to most applicable vendor, finally negotiate and signing of contracts, and at last notify the vendors, those are not selected,