Difference Between Similar Terms and Objects

Difference Between RFP and RFQ

RFP vs RFQ

The acronyms RFP and RFQ can have varied meanings depending on what type of industry you’re working in. Nevertheless, the two are generally known in many areas as Request for Proposal (RFP) and Request for Quote or Quotation (RFQ).

RFQ is usually put into action at times of procurement of products. A good example of an RFQ scenario is when you wanted to buy 25 laptop computers. First, you’re going to send a formal RFQ to a hardware or computer store asking for the quotation for 25 laptop computers with your given preferred specifications. The receiver of the RFQ (the store) will then reply back to you by sending you their quote for the 25 laptops which has the individual cost of each unit most especially if they have a different laptop in stock with a different set of specifications apart from what you originally wanted. Also, the reply contains the total cost of all the units you requested for the quote. In RFQs, the product under discussion need not be purely physical because you can also include non-physical items in the request like software (i.e. Microsoft Excel, Word, etc.).

In other industrial aspects, RFQ can also stand for Request for Qualifications. As such, this request is utilized by the requestor to prescreen potential bidders. This helps narrow down the choices and saves time from the requestor’s end.
RFP is a different scenario because RFPs are used in buying services. For example, if you are the owner of an old, online, buy-and-sell website, and you want to upgrade its features and design to attract more visitors, then you need to send an RFP to a web design / programming / optimizing company. You then tell them what you want for your website like a new shopping cart, a revamp of the homepage appearance to suit the business-inclined web audience, or rethink your website’s keywords to optimize it for a search. The web company peruses your RFP and will reply by sending to you their proposal. In this document, they will highlight pertinent information like: what measures are to be done, the estimated cost of labor, other management fees, and the total project cost. In this connection, RFPs tend to become very detailed because they usually require the following to be specified: number of pages in the proposal, number of illustrations, employee qualifications, and state laws to be upheld, among many others points.

It is also important to note that both the RFP and RFQ are non-binding. This means that you are not, in any way, pressured to buy or hire the services of the other party to which you sent your RFP or RFQ. In the first place, you were just asking for a quote for their proposal.

Summary:

1.The RFQ makes your request for the cost or product price.
2.The RFP makes your request for the total service cost.
3.RFQ can also mean a “Request for Qualifications” wherein you are going to narrow down your potential bidders or vendors.
4.The RFP is often more detailed than RFQs.


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