Request for Proposals in Gregory Garrett's World Class Contracting

Satisfactory Essays

The most common input documents in the procurement industry as mentioned by Garrett in his book are, request for proposal (RFP), request for tender (RFT), request for quotation (RFQ), invitation to bid (ITB), invitation for bids (IFB), and invitation for negotiations (IFN), while, the output documents are the proposals and the bids. For the purpose of this essay I am going to focus on the RFP, ITB, and RFQ as input documents on the buyers step three, solicitation. On the output documents I also want to add quotes, which were not mentioned by the author but in my personal experience they are invaluable when procuring goods and services. Additionally, I want to talk about the risk management aspect of the RFP from the buyers and sellers …show more content…

In response to your RFQ your prospective vendors provide you quotes (output document for RFQ). After receiving all the quotes, you choose the vendor with lowest price because the selection is cost driven. RFQ and quotes are most of the time informal and there is no binding associated with these documents.
In the other hand, when you do an ITB you go to a formal competitive solicitation. I found on my research that companies and government agencies have a dollar amount threshold to decide between a RFQ and ITB. The source selection decision of the commodities or services to be procured are price driven; therefore, the lowest bidder that meets the minimum criteria gets the contract. ITBs go in depth details to ensure that there is no deviation from the requirements. A business case I found online; University of Florida publishes an ITB for a janitorial contract for the new School of Medicine in Orlando Florida. The statement of work is very specific on what, how and when everything needs to be done. The response for the ITB are bids from potential vendors. This document is useful when the cost uncertainty is low.

The RFPs are used when there is a level of complexity associated with a requested service or goods. Garrett mentions on Chapter 7 that is “generally used when nonfinancial considerations, such as technical skills or approach, are paramount.”
RFPs allow from early stages of the procurement that the buyer and the seller are engaged in

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