One of the most frequent questions that comes up in procurement is what are common types of purchasing types are available.
This post will provide standard definitions of the most common general procurement types:
RFI – Request for Information
A Request for Information (RFI) is a competitive solicitation where the purpose is to collect information about the capabilities and competencies of various suppliers of a product and/ or service. This is often utilized as a first step towards a short list or preliminary screening of potential suppliers for an RFQ, RFP or ITN. Although not recommended and somewhat confusing Request for Qualification (RFQ) is an often utilized similar term.
RFQ - Request for Quotation
A Request for Quotation (RFQ) is a competitive solicitation where suppliers are invited into a bidding process to bid on very specific and well defined products or services. Request for Quotations are typically price or cost driven after minimum qualifications or standards for suppliers are met. Primarily utilized for smaller dollar thresholds <$75,000.
IFB - Invitation For Bid
A synonymous term for Request for Quotation (RFQ).
RFP – Request for Proposal
A Request for Proposal (RFP) is a competitive solicitation for the purchase of products and/or services, where influencing factors other than price are to be considered and weighted in the final award determination. Primarily utilized for larger dollar thresholds >$75,000.
ITN – Invitation to Negotiate
An Invitation to Negotiate (ITN) is a competitive solicitation for the purchase of products and/or services, where influencing factors other than price are to be considered and weighted in the final award determination and there will be negotiation with the short listed suppliers or preliminary screened potential suppliers as part of that process. Primarily utilized for larger dollar thresholds >$75,000.
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