RFP vs RFQ: A Procurement Professional's Guide
Even experienced suppliers and procurement professionals encounter confusion when distinguishing between RFPs (Requests for Proposal), and RFQs (Requests for Quotation). While all these mechanisms serve to source goods and services via a Tendering process, their strategic intent, evaluation processes and supplier expectations differ significantly. These distinctions directly impact pricing strategy, bid response time and compliance requirements, particularly within South African public sector procurement.
This guide provides clarity beyond basic definitions, helping procurement professionals and suppliers respond more effectively and increase their bid win rates.
Understanding RFP and RFQ tenders in the Procurement Lifecycle
Rather than viewing RFPs and RFQs, as isolated document types, procurement professionals should understand them as strategic sourcing tools within a broader procurement lifecycle.
A Tender in South Africa represents a formal, regulated bidding process that encompasses compliance verification, pricing evaluation and technical capability assessment. In South Africa's public sector, tenders are governed by frameworks including the Public Finance Management Act (PFMA), Municipal Finance Management Act (MFMA) and Preferential Procurement Policy Framework Act (PPPFA).
An RFQ functions as a form of tender used as a price discovery mechanism for well-defined needs. When specifications are fixed and the primary decision factor is cost competitiveness, an RFQ provides the most efficient path to supplier selection.
An RFP in business also functions as a form of tender used when buyers need to evaluate vendor capability, innovation and solution design. This approach acknowledges that supplier expertise can shape the final solution. RFPs invite suppliers to propose how they will achieve desired outcomes, not simply what they will deliver.
What is an RFQ (Request for Quotation)?
A Request for Quotation (RFQ) is a tactical, price-focused procurement request used when buyers have clearly defined specifications and seek competitive pricing from suppliers. RFQs are commonly used for commodity purchases, repeat orders and situations where specifications are fixed.
Examples relevant to South African procurement include bulk stationery supply for government departments, maintenance contracts for municipal facilities or the provision of cleaning materials under framework agreements.
Evaluation criteria for RFQs are straightforward: primarily cost, followed by delivery capability and supplier compliance. In South Africa, RFQs often form part of municipal and departmental procurement where specifications are predetermined.
In short:
RFQ meaning: A request for a price quotation based on predefined requirements.
Best suited for: Straightforward goods or service procurements with fixed specifications.
What is an RFP (Request for Proposal)?
A Request for Proposal (RFP) is a complex, value-based procurement tool used when buyers seek solutions rather than simply prices. RFPs invite suppliers to propose how they will achieve desired outcomes, encouraging differentiation through approach, technology selection, project methodology and value-added services.
Common examples in South African public procurement include IT infrastructure projects, consulting contracts, system integrations, energy efficiency programmes and public-private partnerships.
Evaluation of RFPs typically allocates 80-90% of the total score to technical merit, with pricing comprising the remainder. This reflects the strategic nature of RFP procurement: the goal is to identify the supplier best equipped to deliver outcomes, not simply the lowest bidder.
In short:
RFP meaning: A call for detailed solutions and strategies, not just pricing.
Best suited for: Large, complex projects that require expertise and planning.
Comparing RFQ and RFP – Core Differences
Understanding the strategic differences between RFQs and RFPs is essential for effective bid strategy:
| Aspect |
RFQ |
RFP |
| Purpose |
To obtain price quotes for clearly defined products or services |
To source detailed proposals and solutions |
| Focus |
Cost, delivery time and supplier reliability |
Innovation, methodology and value-add |
| Complexity |
Low |
High |
| Evaluation Criteria |
Price-driven |
Technical merit + price |
| Use Case |
Commodity goods, repeat purchases |
Consulting, IT, design, infrastructure |
| Example |
Supplying stationery |
ERP system implementation |
These distinctions reflect fundamentally different procurement strategies. An RFQ assumes the buyer knows precisely what is needed and seeks competitive pricing. An RFP acknowledges that supplier expertise can shape the solution.
In South African public procurement, it's common for RFPs or RFQs to form part of broader tender processes. Understanding these distinctions allows suppliers to tailor their responses appropriately, emphasising innovation where RFP evaluation applies and focusing on cost competitiveness where RFQ criteria dominate.
Choosing the Right Approach – When to Use RFQ vs RFP
Understanding when to use each approach is critical for efficiency, compliance and successful outcomes.
Use an RFQ when the requirement is clearly defined, specifications are fixed and pricing is the primary decision factor. RFQs are ideal for routine purchases, commodity goods and standardised products or services.
Use an RFP when evaluating supplier capability, seeking innovative solutions or addressing complex requirements where methodology matters. RFPs are appropriate when the buyer needs to assess how suppliers will deliver, not just what they will deliver.
Experienced suppliers align their response strategy with the buyer's intent, not merely the format of the request. This means analysing evaluation criteria, understanding the weighting between price and technical factors, and recognising whether the buyer seeks price competitiveness, innovative solutions, or compliance with predetermined specifications.
Why Understanding These Differences Matters for South African Suppliers
For suppliers working in South Africa's public procurement environment, misunderstanding the differences between RFPs and RFQ’s leads to tangible consequences: non-compliant bids, missed opportunities and pricing inefficiencies.
Many tenders in South Africa combine both RFQ and RFP elements within a single procurement process. Suppliers who fail to identify which evaluation method applies to each component risk submitting responses that don't align with scoring criteria.
This complexity is compounded by South Africa's regulatory framework, which mandates specific compliance requirements: Central Supplier Database (CSD) registration, SARS tax clearance, B-BBEE verification and industry-specific certifications (such as Construction Industry Development Board (CIDB) grading for construction).
Platforms like OnlineTenders simplify this navigation by accurately categorising opportunities, providing clear information on evaluation criteria and ensuring suppliers can identify whether a procurement emphasises price competitiveness (RFQ) or technical capability (RFP).
Conclusion
The distinction is straightforward: RFQs are price-driven, RFPs are value-driven. Successful suppliers recognise which approach is being used and tailor their bid strategy accordingly - emphasising cost competitiveness where price dominates, showcasing innovation where technical merit is weighted heavily and ensuring meticulous compliance where formal tender procedures apply.
For procurement professionals and suppliers working in South Africa's public sector, this understanding directly impacts bid success rates, resource allocation efficiency and commercial outcomes.
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