Part 163: Bid Documents
(OUTPUT Project Procurement Management: Plan Procurement Management)
- When we want to acquire a product or service, we need request some information from the sellers
- The requests can be called proposals, bids, tenders, or quotations
- Request for Information (RFI)
- We need more information from the sellers. We don’t really know what we need yet, and we aren’t looking for a price. We just want a feel for the capabilities of the suppliers. We take this information and digest it. We come back later with a Request for a Proposal.
- For example, anybody who is interested in supplying us with gears should send in a catalogue.
- Request for Quotation (RFQ)
- We know what we need, and we want to know what it will cost
- For example, we want plastic gears with 32 teeth. Each supplier should send us a price quote.
- Request for Proposal (RFP)
- We have a problem, and we don’t have a clear solution
- Each supplier should propose a solution
- Most formal of the three requests
- For example, we want to connect two neighborhoods. What is the best way? Maybe a bridge, maybe a tunnel, maybe a road. Each engineering firm is invited to submit a proposal (technical capabilities and cost), and the best proposal wins.
- The procurement documents should be structured so that it is easy to compare and evaluate the responses to them
- The more expensive the product, the more detailed the documents