Before discussing the basic difference between RFP, RFQ and IFB, RF it is necessary to give what these acronyms stand for first. IFB stands for Invitation for Bid, RFP stands for Request for Proposal, and RFQ stands for Request for Quote. Basically, these types of government solicitation differ considerably in terms of what is requested and required of you.
It is important to know the difference of these three types of government solicitation to make sure you are using the appropriate one. Actually, there are four basic kinds of solicitation documents. The first type of solicitation document is used for bidding. In this type, the primary factor is price. For the second type, the focus is more on the factors than on the price. This type of solicitation document is used for request proposals. There is also a type of solicitation document that is used to ask for the qualifications of a certain individual, which is the third type. Lastly, the fourth type is used before the bid or proposal process is started in order to gather information from potential proposers or bidders.
For procurements of more than $100,000 in value, IFB is used as the competitive method of awarding government contracts. Take note that the agency has the exact information involved in the contract. This information includes the items needed in the contract and the quantity for each of the items. The agency also knows precisely the time and method of delivering the products and services. In general, the award is based on the prices. It appears that writing a government contract proposal is simple because all you need to do is fill out the government bid-package forms.
On the other hand, extra case is needed when completing these documents. Bear in mind that the government will be strictly scrutinizing the package. When the agency is not sure about what it wants, the request for proposal or RFP approach to contracting takes place. This is especially so if the agency is expecting you to come up not only with a solution but with cost estimate as well. Aside from the standard forms provided by the government, it is also required to submit your own RFP. The proposal must include personnel information, necessary management plans, drawings, and any other pertinent documents that will exhibit the capabilities of the business to complete the contract. Such sort of procurement can be either competitive or noncompetitive. Take note that putting government proposals together can consume too much time and expense. This is why it is highly important to make a thorough consideration and evaluation on the possible benefits and setbacks the government RFPs can give the company.
More often than not, what is used for the verification of current market pricing is the RFQ. With this kind of solicitation, the quote submitted cannot be accepted by the government and is not a binding offer. In order to make the offer binding, a Standard Form 26 would be necessary. The Standard Form 26 contains the signatures of both the contracting officer and the contractor.
