For example, an EOI Expression of Interest — often done in the early stages of the procurement process — may be released if the buyer is searching the market for potential suppliers, or seeking industry input into scoping requirements that will then go back out to market later on.
An RFP Request for Proposal is often the next stage in the procurement process where the buyer goes to market for solutions-oriented approaches to service or product delivery. The RFT Request for Tender on the other scale is a request to really get a proposal on the table around how you would design a solution or deliver a product or service, but this usually delves further into what you are like to do business with such as seeking information about organisational capability and resources, financial viability, sustainability principles and value adding.
A Request for Tender may not seek pricing initially and may involve several phases of short-listing. A RFQ is a request to provide pricing on a product or service, which is generally not asked for in the early stages of procurement such as a Request for Information. Request for Tenders are often used in the major infrastructure and construction industry where solutions to problems are high value, high risk and very specific.
An RFP Request for Proposal is often the next stage where the buyer goes to market for solutions-oriented approaches to service or product delivery. The RFT Request for Tender on the other scale is a request to really get a proposal on the table around how you would design a solution or deliver a product or service, but usually delves further into what you are like to do business with such as seeking information about organisational capability and resources, financial viability, sustainability principles and value adding.
A Request for Tender may not seek pricing initially and may involve several phases of short-listing. A RFQ is a request to provide pricing on a product or service, which is generally not asked for in the early stages of procurement such as a Request for Information.
Download Free PDF. Victor C Chipalabwe. Download PDF. A short summary of this paper. These terms are often used and hence a clear understanding of what they mean is cardinal to everyone whose day to day vocabulary involves these terms. The differences between these three approaches are outlined in this article.
The company releasing the EOI may have a high level understanding of their business problem or requirements, or type of product they require, but they are unsure of the market's ability or desire to meet their need Yee, The company releasing the EOI may need to collect some additional information before they are able to make some procurement decisions.
Examples of useful information gained from an EOI include identifying: available technologies, products or service available in the market place to meet their business need, the willing and interested parties or vendors offering the potential products or services, whether any of these potential companies will accept the terms and conditions imposed by a contract or deliverable expectations, the maturity and experience of the companies offering those products or services, and their abilities to deliver similar products or services, the likely indication of costs associated with delivering the product or service, a shortlisted number of providers, which can be used to progress to an RFT or RFP Yee, It is unlikely that an organisation will directly purchase from performing an EOI.
Given the cost and effort involved in preparing a response to an EOI, requesting companies quite often engage specialist consultants to perform market surveys to scope out the available products and services and their providers without actually doing a formal EOI. This method ensures that there are no costs incurred by potential providers. For that to happen, a process has to progress until it reaches RFT. EOI is a type of open tendering that enables any company to come forward.
It gives rise to a tough competition and provides the benefit of allowing new and potential suppliers to secure their work. However, in construction contracts, it is largely criticized for attracting suppliers that are not suitable for the contract, which results in a waste of time, money, and effort. The advertisement that requests an EOI must include a description of the contracting body, description of the contract such as budget and scale , type of contract, procurement route, terms and conditions, submission address and deadline, and other details including contact information, description of the organization, technical capacity and related experience, availability of staff and their experience, etc.
It is mostly used when a purchaser is looking for a solution-based response to fulfill its requirements and in cases where other factors excluding price are central to the evaluation of each offer. It is also used in situations where no clear solutions or specifications are available, and the purchasing department is looking for a number of innovations and options. These instruments are more flexible than the RFT which normally has well defined solutions or specifications.
The RFP is mainly used in the professional services where a solution cannot be defined easily. An RFP contains background information on the organization and its line of business. The request consists of specifications that explain the solutions the organization is seeking. Moreover, it also includes the evaluation criteria for how proposals are graded, a statement of work that describes the tasks to be performed by a bidder who wins the contract, and the timeframe in which to finish the project.
An RFP is usually created because of the complex nature of a project. Companies can benefit from various bidders when looking for a well-integrated solution from a number of suppliers. For example, if a company is planning to switch its business from a paper-based environment to computer-based environment, it may request a proposal for software and hardware in addition to the training that is required for installing and integrating new systems into the business.
In the public sector, entities may issue an RFP for creating an open competition in order to bring down the cost of a solution.
0コメント