RFI vs RFP vs RFQ: which one to send, and when to skip the RFI

RFI vs RFP comes down to what you already know: a request for information (RFI) asks suppliers what exists, and a request for proposal (RFP) asks them for a priced solution to a need you have already defined. A third document, the request for quotation (RFQ), asks for a price on something you can already specify exactly. Our view: send an RFI only when you cannot yet write the requirement, keep it short, and start with a handful of calls with people who have bought the same thing, because they usually teach you more before the RFP.

The US federal rules draw the RFI line clearly. FAR 15.201 says RFIs may be used when the government does not presently intend to award a contract but wants price, delivery, other market information or capabilities for planning, and that responses are not offers and cannot be accepted to form a binding contract. Private companies are not bound by the FAR, but the distinction is a useful one to borrow.

1. Send an RFI only when you cannot yet write the requirement

Use an RFI when you could not write a one-page requirement today without guessing. The RFI's job is to learn what kinds of solutions exist, who sells them, what they roughly cost and what you forgot to ask about.

The NIGP dictionary defines it as a non-binding method for a public body to publish its need for input from interested parties ahead of an upcoming solicitation.

Here is a made-up example used through the rest of this post. A 120-person property management company wants software to handle tenant maintenance requests. Nobody there has bought one before. They do not know whether these tools usually include vendor dispatch, whether pricing is per unit or per user, or which systems they need to connect to. That company can reasonably send an RFI.

Keep it short. Ask what the product does, who it is built for, how it is priced, how long setup usually takes and what a buyer like you should ask that you have not. FAR 15.201 lists price among the things an RFI can gather, so ask for a rough price range so you can set a budget before the RFP.

The tradeoff: an RFI adds weeks to the process (vendors need time to answer, and you need time to read), so it only pays when the answers will change what you put in the RFP.

2. Send an RFP when you know the problem but not the best answer

Use an RFP when you can describe what you need and how you will judge it, but several suppliers could solve it in different ways at different prices. FAR 15.203 says a competitive RFP must at a minimum describe the requirement, the anticipated terms and conditions, the information the proposal must include, and the evaluation factors and their relative importance.

Those published, weighted factors are what make an RFP a judged competition instead of a price comparison. The NIGP definition notes that price is usually not a primary evaluation factor in an RFP, and that it allows negotiation of all terms, including price, before award.

For the property management company, the RFP comes after the RFI (or after the calls in section 5). By then they can write requirements such as "tenants submit a request with photos from a phone" and "work orders go to outside contractors with a cost approval step." How to write a request for proposal covers the outline, the scoring table and the common mistakes, so this post won't repeat them.

The tradeoff: an RFP is expensive for everyone. Each supplier writes a long response, and your team has to read and score every one, so send it to a shortlist.

3. Send an RFQ when you could write the spec on one page

Use an RFQ when the item is defined well enough that the suppliers differ mainly on price, delivery and terms. The property management company replacing 40 office laptops with a named model and warranty does not need proposals. It needs three prices.

NIGP describes the RFQ as a method generally used for small orders under a dollar threshold, where suppliers get a description of what is needed and reply with price and other information by a set date. It adds that the award should go to the quote that best meets price, quality, delivery, service, past performance and reliability. In federal simplified purchases, FAR 13.106-1 allows award on price alone or on price and other factors, such as past performance and quality, and requires telling suppliers the basis for award in advance.

One legal detail matters if you are on either side. Under FAR 13.004, a quotation is not an offer. The government's order is the offer, and a contract forms when the supplier accepts it.

The tradeoff: an RFQ hides any problem with your spec. If you specify the wrong thing, you will get a great price on it.

4. Skip the RFI when you already know the vendors and the shape of the answer

Go straight to an RFP (or an RFQ) when you can already name the credible suppliers and write the requirements. If your team has used a similar tool at a previous company, if the category has three well-known vendors, or if you are replacing a system you already run, an RFI mostly confirms what you know.

The FAR itself scales this. FAR 10.002 says the extent of market research will vary with urgency, estimated dollar value, complexity and past experience.

Skip it too when the purchase is small enough that the RFI would take longer than the decision deserves. (Nobody needs a three-week information phase for a coffee machine.)

The tradeoff: skipping the RFI means you might miss a newer kind of solution. Cover that gap with the calls in the next section, which are faster than a formal round.

Short version: RFI when you cannot write the requirement, RFP when you can write it but the solutions differ, RFQ when you can write the full spec, and no RFI when you already know the field.

5. A few calls with people who have bought this before usually beat a 40-question RFI

When you do need market research, start with three to five calls with people outside your company who bought and ran this kind of product recently. Do this before you decide whether a formal RFI is needed at all. This is our opinion, and here are the reasons.

Vendors answer an RFI as marketing. Every supplier is answering to get on your shortlist, so every answer to "does your product support X?" leans toward yes. A past buyer has nothing to sell you and remembers what "yes" turned out to mean.

Long RFIs get long, generic answers. A 40-question RFI invites copied boilerplate, and you end up reading hundreds of pages written to be agreeable. A 30-minute call lets you follow up on the one answer that surprised you.

Past buyers know which requirements mattered. They can tell you what they asked for and never used, what they forgot to ask for, how long setup really took and what they paid in year two. That is the material that makes your RFP sharper.

They can tell you who belongs on the shortlist. Including vendors they rejected, and why.

The federal rules count this as market research. The first technique FAR 10.002 lists is contacting knowledgeable individuals in government and industry about market capabilities.

For the property management company, the calls might go to operations managers at other property managers with a few thousand units. Ask about events: "What did your maintenance team still track in a spreadsheet after go-live?" "Which vendor did you drop from your list, and when?" Vendor selection has more questions of this kind for reference calls.

When this advice does not fit: a public body or regulated buyer may have rules that require a published RFI so every supplier gets the same chance. Check your procurement policy, do the calls anyway, and publish the short RFI as well. Also remember that three people are three opinions. Use the calls to write better questions, not to pick the winner.

6. If you are the vendor, answer each document for what it is

If you are responding rather than buying, read the document type before you write.

• An RFI is your chance to shape the RFP. Answer briefly and accurately, say where your product does not fit, and include the question you think the buyer forgot. FAR 15.201 says an RFI response is not an offer, so give rough pricing ranges rather than a firm quote.
• An RFP is judged on the stated factors. Answer every requirement in the order and format asked, against the evaluation criteria in the document. FAR 15.203 requires those factors to be in a federal RFP; in a private one, ask for them if they are missing.
• An RFQ is mostly price against a spec. Quote exactly what was specified, list every extra cost, and flag any spec problem in one line rather than quoting something else.

The procurement process shows where these documents sit in the buyer's steps, and the B2B buying process covers who on the buyer's side reads your answer.

Your next step

Write one paragraph describing what you need to buy. If you cannot write it without guessing, list three people outside your company who bought something similar in the last two years and call them before drafting an RFI.

If you don't know those people, Instant Expert can find people who match a description such as "operations managers at property management companies who chose maintenance software in the last two years," send them paid invitations for a short call or a written answer, and you pay only if someone books or answers. The directory pages for procurement consultants and IT procurement experts are another place to start.