The letters on the front of a solicitation tell you how the government plans to pick a winner, and that should change how you respond. A response that would win an RFP can lose an IFB, and a beautifully written narrative sent in answer to an RFQ may never get read.

Here's what each type usually means in practice, how it's evaluated and what you should send back. One caveat up front: naming is not consistent. Federal agencies follow the Federal Acquisition Regulation (FAR), but every state, county, city and school district has its own procurement code, and some use these terms loosely. Always read the evaluation section rather than trusting the label.

The short version

TypeWhat the buyer is doingUsual basis of awardWhat you submit
RFIResearching the marketNo awardCapabilities, answers to their questions, feedback
RFQGetting quotes, usually for smaller or simpler buysOften lowest price, sometimes price plus a few factorsPrice quote, specs, delivery terms, required forms
IFB / ITB / RFBFormal sealed biddingLowest price from a responsive, responsible bidderCompleted bid form, exactly as specified
RFPNegotiated procurementBest value (tradeoff) or lowest price technically acceptableTechnical proposal, management approach, past performance, price

RFI: request for information

An RFI (federal agencies also use "sources sought" notices) is market research. The agency hasn't decided how to buy yet, or whether qualified small businesses exist to justify a set-aside. Nobody wins an RFI.

That doesn't make it a waste of time. For federal work, sources sought responses can influence whether an agency sets the eventual contract aside for small businesses, and RFI answers can shape the requirements. If you tell a buyer their draft spec names a single manufacturer's part number and three other brands meet the need, the final solicitation may change.

Keep your response short and direct. Answer the questions they asked, in their order. Include your company info, registration details, NAICS codes, socioeconomic status and two or three relevant past projects. You can see what agencies are researching on the open RFIs page.

RFQ: request for quotation

RFQs are usually for lower-dollar or well-defined purchases. In federal buying they are common under simplified acquisition procedures (FAR Part 13), and a federal quote is technically not an offer; the government's order is the offer, which you accept by performing or signing. State and local governments often use RFQs for purchases between their small-purchase limit and their formal bid threshold, and those thresholds vary widely by jurisdiction.

Evaluation is often lowest price among quotes that meet the specs, but read carefully. Many RFQs add delivery time, warranty or past performance as factors.

Example: a city parks department sends an RFQ for 12 outdoor Wi-Fi access points with mounting kits, delivered within 30 days. You send back the quote form with unit and extended prices, the exact make and model, spec sheets, lead time and the signed forms. That's it. A five-page company history does not help and can annoy the buyer.

IFB: invitation for bid

An IFB (also called an invitation to bid, ITB, or request for bid, RFB) is formal sealed bidding. The buyer has a complete, fixed specification and intends to award on price. In federal sealed bidding under FAR Part 14, bids are opened publicly and award goes to the responsible bidder whose bid conforms to the invitation and is most advantageous considering only price and price-related factors. Most state and local codes work similarly for formal bids, and construction is frequently procured this way.

Two words matter here:

  • Responsive means your bid complies with every material requirement of the invitation, as submitted. You generally can't fix it after opening.
  • Responsible means you have the capacity, finances, integrity and track record to perform. The buyer checks this after identifying the low bidder.

So a county IFB for 40 laptops with a specified minimum configuration is won by the lowest bidder that meets every spec and fills out every form correctly. If you're $900 lower but forgot to acknowledge Addendum 2, and that addendum changed the quantity, you may be declared nonresponsive and the next bidder wins.

What to submit: exactly what the bid form asks for, signed, with every addendum acknowledged, any required bid bond (see our guide to bid and performance bonds) and nothing that adds conditions. Writing "prices valid for 30 days" on a bid that requires 90-day acceptance can make it nonresponsive. Don't add exceptions, alternates or clarifications unless the IFB invites them.

RFP: request for proposal

An RFP is used when the buyer wants to compare different approaches, not only prices. Federally this is negotiated contracting under FAR Part 15; state and local governments use the term for "competitive negotiation" or "competitive sealed proposals."

There are two common evaluation approaches:

  • In a best value tradeoff, the agency scores technical approach, past performance, staffing and price, and can pay more for a stronger proposal if the solicitation allows it. The relative weight of each factor is stated in the evaluation section.
  • Under lowest price technically acceptable (LPTA), proposals are rated pass/fail on technical factors, and the cheapest acceptable one wins. It looks like an IFB but you still write a technical volume that has to pass.

RFPs allow things IFBs usually don't: clarifications, discussions, negotiations and revised proposals. They also demand much more writing. A managed IT services RFP from a mid-sized city might ask for a transition plan, staffing plan, service-level commitments, three references, a sample monthly report and a multi-year price sheet.

What to submit: everything in the instructions, organized in the order they specify, answering each evaluation factor directly. Our guide to writing a winning proposal response covers structure and compliance.

Other labels you'll see

  • Some agencies use RFQ to mean request for qualifications, especially for architecture and engineering work. Price may not be requested at all, so read the first page carefully.
  • "Solicitation" is the generic term. On BidsNexus, notices that don't declare a type are grouped under general solicitations.
  • A presolicitation notice is a heads-up that a solicitation is coming. Use the lead time to line up suppliers and partners.
  • A grant opportunity is not a purchase. The government is funding a project rather than buying goods or services.

How to adjust your effort

The rough rule I use: RFIs get an hour or two, RFQs get a tight quote and careful spec check, IFBs get obsessive compliance review and sharp pricing, and RFPs get the real proposal effort. Match the work to how the award will actually be decided.

If you want a refresher on the basics first, our earlier post on understanding RFQ, RFP and RFI is a good starting point.

Frequently asked questions

Is an IFB always awarded to the lowest price?

In formal sealed bidding the award generally goes to the lowest-priced bid that is responsive to the invitation from a responsible bidder. A cheaper bid that misses a material requirement can be rejected.

Can you win a contract from an RFI?

No. An RFI or sources sought notice is market research, but responding can influence the final requirements and, for federal work, whether the agency sets the contract aside for small businesses.

What is lowest price technically acceptable?

LPTA is an RFP evaluation method where proposals are rated pass/fail on technical factors and the lowest-priced acceptable proposal wins.

Do state and local governments use the same terms as federal agencies?

Mostly, but not consistently. Each state and locality has its own procurement code, so always check the solicitation's evaluation section rather than relying on the label.

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Sources: www.acquisition.gov  www.acquisition.gov  www.acquisition.gov  www.acquisition.gov  www.acquisition.gov  www.acquisition.gov