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The report is a collection of the information gathered during the phase. The executive overview outlines the key findings which will draw heavily on the Impact Assessment. The final section looks at the path forward.
The path forward has four options:
- RFI (Request for Information). A company will issue an RFI when they have a requirement to go to the market and see what, if anything is available to satisfy a particular need. The RFI process will not result in a direct purchase but may lead to an RFP, RFT or an RFQ. RFI can also be called an EOI (Expression of Interest)
- RFP (Request for Proposal). A company can issue an RFP in situations where there is a general understanding of what is required and the supplier's expertise is needed to develop or perfect the desired end product or service based on information provided by the company. The company will want to find the best solution or would like to explore available options. The RFP process allows for substantial flexibility and helps to ensure that all possible suppliers have an equal opportunity to satisfy the needs. Proposals are scored based on the criteria established by an evaluation committee.
- RFQ (Request for Quote). An RFQ is provided against a tight set of criteria supplied to the Vendor. A quotation received in response to an RFQ is not an offer, and consequently, cannot be accepted by the company to create a binding contract. An RFQ is typically a starting point for negotiation.
- RFT (Request for Tender) from one, or
a small number of vendors. The RFT process is less flexible
than the RFQ process. A company will issue an RFT outlining
the exact specifications of the product or service. Price
is usually one of the main criteria for the awarding of
a contract.
|
RFI |
RFP |
RFQ |
RFT |
Looking to understand the market in general |
Yes |
No |
No |
No |
| Fixed Price requested |
No. Sometimes an indicative range |
No |
Not normally |
Yes |
Price normally negotiable |
Price not always provided. |
Yes |
Yes |
No |
Vendor has flexibility to tailor the solution |
Yes |
Yes |
Not without negotiating a change to the RFQ with the Company |
No |
Only one solution proposed |
Not necessarily |
Not necessarily |
Usually |
Yes |
The decision will be driven by the following criteria:
- If we need to find out more about the market area and
the range of packages that may suit, an RFI will be the
best way to go. An RFI will allow us to look at how products
are different, and what may be more suitable for our needs.
Useful when it is a new system as opposed to a replacement
system.
- If we are flexible in our approach to this business area, and prepared to fit our business around potential systems, an RFI will present us with numerous options
- If the way in which the solution will fit our needs is not absolutely clear, and we want some vendor input/flexibility, and RFP is probably the best way.
- If the area is complex, and there may be a number of ways in which the solution could be provided, an RFP is the best approach.
- If we want a non negotiable fixed price quote, use an RFT
- If we are reasonably clear on what we want, and know a number of packages that are a close fit, you can move straight to an RFQ.
- If we only have a limited number of vendors (i.e. a maximum of 3 or 4) in the market, an RFT is more appropriate
- If we are pressed for time and don’t have time to review options, an RFT may be the best option
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