Request for Quotation (RFQ) vs Request for Proposal (RFP)

Two acronyms appear again and again in Sri Lankan procurement notices: RFQ and RFP. They look similar, and some people use them interchangeably, but they lead to very different kinds of responses. Understanding RFQ vs RFP helps you decide how much effort a notice needs, what the buyer is really evaluating, and how to shape a response that wins.

In short, a Request for Quotation (RFQ) asks "how much will you charge for this clearly defined item?", while a Request for Proposal (RFP) asks "how would you solve this problem, who would do it, and at what cost?" This guide explains both in detail, shows how they fit into public procurement in Sri Lanka, and gives practical tips for responding to each.

Terminology and procedures vary between procuring entities and funding sources, and rules under the National Procurement Commission (NPC) guidelines are updated from time to time. Always verify requirements in each tender's bidding documents.

What Is a Request for Quotation (RFQ)?

An RFQ is an invitation to suppliers to submit prices for goods, works or services that are already clearly specified. The buyer knows exactly what it wants: the quantity, specifications, delivery location and timeline. The main question left open is price, along with basic compliance.

In Sri Lankan public procurement, RFQs are commonly associated with the shopping method used for lower-value procurements of readily available goods and simple services. Procuring entities often send RFQs to suppliers on their registered supplier list, and may also advertise. The NPC guidelines set out when shopping can be used, including value limits that are revised from time to time.

Typical Features of an RFQ

• Detailed specifications or a bill of quantities provided by the buyer.
• A simple price schedule to fill in.
• A short submission period.
• Limited or no technical evaluation beyond compliance.
• Award usually to the lowest priced compliant quotation.
• Fewer documents required, though registration, tax and authorisation may still be needed.

Common Examples

• Office stationery, furniture, cleaning materials.
• Standard computers and printers to a given specification.
• Minor repairs with a defined scope.
• Catering or transport for a specific event.

What Is a Request for Proposal (RFP)?

An RFP invites firms to propose how they would meet a need, especially where the solution, methodology or expertise matters as much as price. It is most common for consultancy and other services, such as engineering design, feasibility studies, audit, training, IT system development and advisory work.

In Sri Lankan public procurement, consultancy selection is governed by its own guidelines and standard documents. A common sequence is to invite expressions of interest (EOI), shortlist firms, and then issue an RFP to the shortlisted firms. Selection methods can include quality- and cost-based selection (QCBS), quality-based selection (QBS), fixed budget selection, least cost selection and selection based on consultant qualifications, depending on the assignment and rules.

Typical Features of an RFP

• Terms of Reference (TOR) describing objectives, scope and deliverables.
• A technical proposal covering understanding, methodology, work plan and team.
• CVs of key experts and firm experience.
• A separate financial proposal, often in a separate sealed envelope.
• Evaluation based on a scoring system with weights for technical quality and, where relevant, price.
• Possible negotiations with the selected firm before contract.

RFQ vs RFP: Side-by-Side Comparison

| Aspect | RFQ | RFP | |---|---|---| | Main question | What is your price? | How will you do it, and at what cost? | | Typical use | Defined goods, simple works and services | Consultancy, complex services, solutions | | Buyer's knowledge | Knows exactly what it needs | Knows the objective, not necessarily the solution | | Document from buyer | Specifications / BOQ | Terms of Reference | | Response content | Price schedule, compliance documents | Technical and financial proposals | | Evaluation | Mostly price after compliance | Scored on quality, often combined with cost | | Effort to respond | Low to moderate | High | | Negotiation | Rare | Possible, within rules | | Typical timeline | Short | Longer |

Where Do Bids Fit In?

For larger goods and works contracts, the usual document is neither an RFQ nor an RFP but an invitation for bids under national or international competitive bidding. These are formal, sealed- bid processes with standard bidding documents. Some entities loosely call any procurement notice a "tender", so read the document itself to understand which process applies.

How RFQs Are Evaluated

1.Opening and recording of quotations received by the deadline. 2.Compliance check: Does the quotation meet the specifications, quantities and delivery terms? Are required documents included? 3.Price comparison: Compliant quotations are compared, usually on total price including any taxes as instructed. 4.Recommendation and award to the lowest compliant quotation, subject to approval.

Because evaluation is simple, small errors carry big consequences. A quotation that changes a specification, omits a line item or misses a delivery requirement can be passed over even if it is the cheapest.

How RFPs Are Evaluated

1.Technical evaluation using criteria and weights stated in the RFP, for example:

• Firm's relevant experience.
• Approach and methodology.
• Qualifications and experience of key experts.
• Transfer of knowledge or local participation, where relevant.

2.Minimum technical score: Proposals below the qualifying score are usually rejected without opening the financial proposal. 3.Financial evaluation of qualifying proposals. 4.Combined score, where QCBS applies, using the stated technical and financial weights. 5.Negotiation with the highest-ranked firm, within the limits allowed, followed by contract award.

Example: A Hypothetical QCBS Score

This is a hypothetical example with round numbers for illustration only.

Suppose an RFP uses an 80:20 technical-to-financial weighting. Firm A scores 85 technical points and quotes Rs. 10 million. Firm B scores 75 technical points and quotes Rs. 8 million. If the financial score is calculated by giving the lowest price 100 points and others proportionally less, Firm B gets 100 and Firm A gets 80. Combined scores would then be:

• Firm A: (85 × 0.8) + (80 × 0.2) = 68 + 16 = 84
• Firm B: (75 × 0.8) + (100 × 0.2) = 60 + 20 = 80

Firm A ranks first despite the higher price, because quality carries more weight. Actual formulas and weights are stated in each RFP.

How to Respond to an RFQ

• Follow the specifications exactly. If you offer an equivalent, ensure the RFQ allows it and explain clearly.
• Fill every line of the price schedule. Do not leave blanks unless instructed.
• Show taxes as required. State clearly whether VAT is included.
• Confirm delivery and validity. Match the requested delivery period and quotation validity.
• Attach required documents. Business registration, tax registration and authorisation letters are common.
• Submit on time and in the stated format.

How to Respond to an RFP

• Read the TOR closely and demonstrate understanding of the client's real problem, not just the scope.
• Tailor the methodology to the assignment and Sri Lankan context rather than reusing generic text.
• Present a realistic work plan with milestones and staffing that match the deliverables.
• Field strong key experts whose CVs match the stated requirements, and confirm their availability.
• Map your proposal to the scoring criteria so evaluators can find each item quickly.
• Price consistently with the technical proposal; staffing and time inputs should match.
• Keep technical and financial proposals separate if the RFP requires it. Mentioning price in the technical proposal can lead to disqualification.

Common Mistakes

• Treating an RFP like an RFQ by submitting a brochure and a price.
• Treating an RFQ like an RFP by adding unrequested alternatives that change the specification.
• Missing the EOI stage and therefore not being shortlisted for the RFP.
• Using CVs of experts who are unavailable or unaware of the proposal.
• Submitting after the deadline.

Key Takeaways

• The core difference in RFQ vs RFP is that an RFQ asks for a price for a defined need, while an RFP asks for a solution and team as well as a price.
• RFQs are typical for lower-value, standard goods and simple services; RFPs are typical for consultancy and complex services.
• RFQs are evaluated mostly on price after compliance; RFPs on quality, often combined with cost.
• For larger goods and works, formal competitive bidding is used instead of either.
• The document itself, not its title, tells you what process applies.

Response Checklist

• Identify whether the notice is an RFQ, RFP, EOI or invitation for bids
• Note the evaluation method and criteria
• Confirm eligibility and required documents
• For RFQs: match specifications and complete the price schedule
• For RFPs: tailor methodology, team and work plan to the TOR
• Keep envelopes separate where required
• Check signatures, validity and deadline

Frequently Asked Questions

Is an RFQ the same as a tender?

People often call any procurement invitation a "tender". Technically, an RFQ is a simpler quotation process, usually for lower-value items, while formal tenders under competitive bidding use standard bidding documents and sealed bids.

When is an RFP used in Sri Lankan government procurement?

RFPs are mainly used to select consultants and for complex services where quality and methodology matter. They are often issued after an expression of interest and shortlisting stage.

Can I negotiate price after submitting an RFQ?

Generally, no. RFQ processes are usually decided on the quotations submitted. Negotiation is more typical in consultancy selection under specific rules.

What is QCBS?

Quality- and cost-based selection is a method that combines a technical score and a financial score using stated weights to rank proposals.

Do I need to be on a registered supplier list to receive RFQs?

Many entities send RFQs to registered suppliers, so being on their list helps. Some RFQs are also advertised publicly. Check each entity's practice.

Are RFQ value limits fixed?

No. The limits for using shopping or RFQ methods are set in procurement guidelines and can be revised. Confirm the current position with the official guidelines or the procuring entity.

Conclusion

RFQs and RFPs ask different questions, and the best responses answer the question actually being asked. An RFQ rewards precise compliance and sharp pricing; an RFP rewards insight, a strong team and a well-structured proposal. Recognising which one you face lets you invest your effort wisely and avoid the common mistakes that cost bidders contracts.

To find new RFQs, RFPs and tenders as they are published, follow the daily tender notices on TenderHub.lk.

Related guides

• How to Submit a Technical and Financial Proposal
• How Government Tender Evaluation Works
• National Competitive Bidding (NCB) Explained
• Understanding Sri Lanka Procurement Guidelines 2024

Browse live tenders in Sri Lanka, see what is closing this week and get daily tender alerts on TenderHub.lk.