Request for Proposal (RFP) Used when competitive sealed bidding is not practicable or – advantageous. Generally this is when factors other than price are to be considered or when objective criteria cannot be defined. One of the key differences between an IFB and an RFP is that negotiations are allowed in an RFP. Discussions are allowed with the respondents and best and final offers are solicited. Unless otherwise exempted, programs must submit their RFPs to CSD for processing. Procurement Methods Procurement Use When Advantages Disadvantages Method Competitive Bids Lots of competition Award process is Defined specifications (Invitation for Bids) exists. simpler. may be difficult to develop. The product or Award is made to the service is available lowest responsive, Does not encourage from more than one responsible bidder innovative solutions. source. providing the best value to the State. Competitive When factors other Allows factors other Lead times for Proposals than price are than procurement are much (Request for evaluated. price to be greater. Proposals, When negotiations considered. Request for are desired. Allows for customized Evaluations are more proposals suggesting complex and Vendor is expected to different approaches subjective. provide innovative to the same business need. Allows for negotiations in order to obtain the best value for the state
Request for Proposal (RFP) – Used when competitive sealed bidding is not practicable or advantageous. Generally this is when factors other than price are to be considered or when objective criteria cannot be defined. One of the key differences between an IFB and an RFP is that negotiations are allowed in an RFP. Discussions are allowed with the respondents and best and final offers are solicited. Unless otherwise exempted, programs must submit their RFPs to CSD for processing. Procurement Methods Procurement Method Use When Advantages Disadvantages Competitive Bids (Invitation for Bids) Lots of competition exists. The product or service is available from more than one source. Award process is simpler. Award is made to the lowest responsive, responsible bidder providing the best value to the State. Defined specifications may be difficult to develop. Does not encourage innovative solutions. Competitive Proposals (Request for Proposals, Request for When factors other than price are evaluated. When negotiations are desired. Vendor is expected to provide innovative Allows factors other than price to be considered. Allows for customized proposals suggesting different approaches to the same business need. Allows for negotiations in order to obtain the best value for the state Lead times for procurement are much greater. Evaluations are more complex and subjective.
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