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Frequently Asked Questions

A request for proposal/request for quote (RFP/RFQ) is a document that solicits vendor proposal, often made through a bidding process, by an Organization or Company interested in procurement of a material/commodity, service, or asset, to potential suppliers/Vendors to submit business proposals. Most of the professional Organization follow this process to encourage a variety of alternative proposals that might be considered to procure material or services.

The Bill of Quantities (BoQ) is a detailed document prepared by the cost consultant/Project Manager that provides procurement specific measured quantities, Brand requirements and specifications of the material intended to procure. Whereas in the case of Service Procurements like manpower deployment or any other services, the detailed service level deliverables are listed in the document. This BoQ document is attached as part of RFP/RFQ & Vendors fill the BoQ and submit their proposal/quote.

The various process involved in RFP process provided below in stepwise ;

  • Step 1: When there is a requirement of procurement of any material or service, Companies prepare a detailed document with the requirement usually called as BoQ. This BoQ documents contains the material that they are intend to procure with specifications, brand, quantity, expected delivery lead time etc., in the case of service procurement, they would specify service level expectations & deliverables. 
  • Step 2: The above document(RFP) is sent to potential vendors to get the competitive quotes/proposal. 
  • Step 3: Once the vendor responds to RFP by submitting the filled BoQs with all the information that required by the Company. The Company will compare the competitive quotes/proposal & shortlist the prospective vendor(s) based on certain internal procurement parameters & shortlist 3 or 4 vendors. 
  • Step 4: These 3 or 4 vendors are called for a discussion/clarifications either in person or through a virtual meeting to get more clarity & further negotiate on the prices quoted. 
  • Step 5 : Company to select any one of the 4 vendors & issue Purchase Order (PO) to supply material or to provide service whichever the case may be.

It depends on the material & its quantity.  Whereas in the case of service procurement also depends on the volume. Typically it takes minimum 1 week or maximum 2 weeks.

The RFP or BoQ process provides a mechanism for organizations to acquire better products and services for their procurement solutions than they might otherwise be able to provide from internally developed procurement solutions. This process also provides a wide range of options in terms of material or service procurement.

It depends on the material & its quantity. Whereas in the case of service procurement also depends on the volume. Typically it takes minimum 1 week or maximum 2 weeks.

Companies can specify the number of vendors required in this procurement process. Otherwise by default minimum 4 or maximum 6 vendors will respond to any RFP.

No, there is no separate RFP required for each city. As part of the RFP document, cities can be listed with qualities to be delivered.