RFI vs. RFQ vs. RFP: What's the Difference?

In the world of government and corporate procurement, acronyms abound. Three of the most common—and most commonly confused—are RFI, RFQ, and RFP. While they all sound similar, they serve very different purposes in the buying cycle. Understanding the difference is key to knowing how to respond and what the buyer is actually looking for.

The Quick Summary

1. Request for Information (RFI)

What is it?

An RFI is a preliminary document used by buyers to gather information about the market's capabilities. They know they have a need, but they aren't sure what solutions exist or which suppliers can provide them.

When is it used?

Early in the procurement cycle, often 3-6 months before a tender is issued.

How to Respond

Keep it high-level. Showcase your capabilities, experience, and innovative solutions. Do not provide detailed pricing. Your goal is to shape the upcoming tender specifications in your favor.

2. Request for Quotation (RFQ)

What is it?

An RFQ is used when the buyer knows exactly what they want (e.g., 50 laptops, Model X, delivered to Pretoria). It is purely a price and delivery competition.

When is it used?

For standard, off-the-shelf goods or services with low complexity. In government, this is often for values under R1 million.

How to Respond

Be precise. Quote exactly what was asked for. Focus on price competitiveness and delivery speed. Ensure all compliance docs (Tax, CSD) are attached.

3. Request for Proposal (RFP)

What is it?

An RFP is used for complex projects where the buyer has a problem but needs you to propose the solution. Price is important, but technical capability and methodology matter more.

When is it used?

For large tenders, consulting services, construction projects, or IT systems.

How to Respond

This requires a detailed technical proposal. Explain your methodology, project plan, team qualifications, and past experience. Differentiate yourself from competitors.

Decision Matrix: When to Use Which

If you are a buyer (or trying to understand one), use this logic:

• <strong>Don't know what's available?</strong> -> Issue an RFI.
• <strong>Know exactly what you want?</strong> -> Issue an RFQ.
• <strong>Have a problem but need a solution?</strong> -> Issue an RFP.

Common Mistakes

1. Treating an RFP like an RFQ

Submitting just a price list for a complex proposal request. You will fail the technical evaluation.

2. Giving Away IP in an RFI

Sharing detailed proprietary designs in an RFI. Remember, your competitors might see the resulting tender specs based on your ideas. Keep secrets secret until the RFP.

3. Ignoring RFIs

Thinking "it's not a real tender." Responding to an RFI puts you on the buyer's radar and helps pre-qualify you for the main event.

Frequently Asked Questions

Is an RFT the same as an RFP?

Request for Tender (RFT) is often used interchangeably with RFP, especially in government. It usually implies a very formal, rigid invitation to bid.

Can an RFI lead directly to a contract?

No. In the public sector, an RFI must be followed by a competitive bidding process (RFQ or RFP) to ensure fairness.

Do I need to be CSD registered for an RFI?

Usually, yes. Even for information gathering, government departments prefer to engage with registered suppliers.

Conclusion

Mastering the language of procurement gives you a strategic edge. By identifying whether a document is an RFI, RFQ, or RFP, you can tailor your response to exactly what the buyer needs—saving you time and increasing your chances of success.