Module 3

Understanding the Types of Bid Requests

• Invitation to Quote
• Invitation to Tender
• Expression of Interest / Request for Qualifications
• Request for Proposal
• A Word on Non-Advertised Opportunities

UNDERSTANDING THE TYPES OF BID REQUESTS

This module provides an overview of the main types of bid requests that are issued by government agencies, VANOC and other organizations.

The following are the four main types of bid requests that you’re likely to see when reviewing opportunities with government, VANOC and many other organizations.

Invitation to Quote

An Invitation to Quote (ITQ) is an opportunity to bid to supply a particular product or service. Typically, purchasers have a very clear understanding of their requirements. In an ITQ, price is usually the key determining factor in the final decision. Suggesting alternative products or services is not usually a successful strategy, though sometimes they may be considered.

Invitation to Tender

An Invitation to Tender (ITT) is very similar to an ITQ, with the main difference being that an ITT is usually a construction-related bid. An ITT usually has a very detailed set of construction specifications that accompany the bid (sometimes it may be necessary to pay a fee to access all of the tender documents). Like an ITQ, the purchasing decision for an ITT is largely based on price; however, for construction projects, previous experience can play a significant factor.

Expression of Interest / Request for Qualifications

The Expression of Interest (EOI), which is sometimes called the Request for Qualifications (RFQ), is really the first of a two-stage bid process. The intent of the EOI/RFQ is to shortlist vendors who will then be asked to submit full proposals. An EOI/RFQ is used when there are many potential suppliers in the marketplace and the purchasing organization wishes to shortlist those suppliers that it believes can best meet its needs. Usually, the EOI/RFQ will request standard marketing information that you may already have on file, such as a description of your company, its services and products, experience and references.

Request for Proposal

The Request for Proposal (RFP) is one of the most frequently used forms of bidding and is used for complex requirements where there is some flexibility in the provision of goods and services. It can be an extensive process to assemble a proposal in response to an RFP, and businesses must be prepared to devote resources to do this effectively. (See “Module 6: Preparing Successful Bids” for how to assemble a successful bid.) The RFP describes the existing situation and asks suppliers to offer their ideas for a solution. Examples of such situations are:

• the requirement is complex
• the buyer would like to see what the experts suggest
• the buyer wishes to consider factors other than price
• the buyer would like ideas on how to deliver a new program
• the buyer would like to see if there is an alternative to the way it usually acquires the product or service

In an RFP, pricing is usually not the absolute determining factor in the final decision. Supplier qualifications, experience, proposed approach, capacity to deliver, etc., are often more important than price. An RFP will typically detail a set of mandatory criteria and desirable criteria for bidding companies.

You must meet or respond to all mandatory criteria in order for your bid to be accepted. Desirable criteria provide you with an opportunity to showcase the particular strengths of your company or approach. In the case of VANOC, sustainability objectives will often be considered aspects of desirable criteria.

A Word on Non-Advertised Opportunities

Some small-value contracts may not be posted or advertised. These are typically one-time requirements that have a relatively low dollar value. In such cases, governmental and other large organizations tend to sole-source a product or service from a vendor in their database (someone with whom they have an existing business relationship).

The key point is that it never hurts to make purchasers (and your business network) aware of your products and services. VANOC maintains a procurement database of company information. (Check the VANOC website at www.vancouver2010.com for current information and instructions on how to register.) VANOC will not accept unsolicited proposals or requests for personal presentations on your company’s goods or services, but if your basic company information is in its database, VANOC will attempt to notify you when an opportunity to bid arises in your field. (Module 9 outlines other options for promoting your company’s capabilities to key purchasers.)