Guide to ICT Sourcing - Appendix C: Market Approaches
Appendix C: Market Approaches
- Request for Expression of Interest
- Request for Information
- Request for Quotation
- Request for Proposal
- Request for Tender
This appendix describes the various market approaches agencies can use to execute the procurement plan in Phase III of the sourcing lifecycle. All market approaches should have regard to the AusTender requirements (see Appendix B).
Request for Expression of Interest
Agencies generally use Requests for Expression of Interest (REOIs) to set up panels of vendors to meet a specific need over a set timeframe. Sometimes it can be used to gauge the level of interest in the market regarding a particular ICT requirement. If the level of interest is low, the agency may determine that it is not worth trying to obtain the ICT goods and services using the tendering method, or at all. As this process is fairly detailed, most agencies will expect an outcome from their efforts.
After setting out some background on the requirement and the broad evaluation criteria, the REOI will generally seek basic information from vendors, such as:
- organisational details
- product and service lines/personnel to be dedicated to the project
- any conflicts of interest they may have (if relevant)
- financial information/viability
- relevant reference sites.
The REOI may include draft Terms and Conditions of the contract (or at least the conditions under which the agency will enter into a legal relationship with a vendor), which reflect the agency’s preferred method of contracting.
Request for Information
A Request for Information (RFI) would be used to obtain basic information about the types of vendors in the marketplace, and how many vendors may supply solutions in specific product/service areas. It may form the basis of an information database inside the agency, which allows the agency to ‘map’ the state of the market and the breadth and depth of the supply chain.
Request for Quotation
A Request for Quotation (RFQ) is similar to an RFI, with the additional requirement that vendors quote a price for the stipulated good or service. An agency will probably obtain quotes from several vendors and it will expect quotes to be vendors’ best and final prices.
Agencies are not obliged to accept any quotes as a result of this process.
RFQs generally set out quote conditions such as evaluation criteria (the key criteria should be value for money), confidentiality requirements, ownership of quotes and the minimum time quotes must stay open (usually three months). Sometimes a draft contract is also included.
Request for Proposal
A Request for Proposal (RFP) is usually used when an agency is seeking proposals from suitably qualified vendors with specialised skills, such as the operation of community health facilities and similar activities. Generally, proposals may be linked to Government grants available to the eventual vendor to operate the required service. RFPs are not often used in the acquisition of ICT goods and services.
Request for Tender
A Request for Tender (RFT) is the most common method used by Australian Government departments and agencies to acquire ICT (and other) goods and services from vendors. RFTs can be used for small panels of vendors, consultancy or audit services, provision of basic ICT goods such as desktops or large requirements covering (perhaps) the entire range of an agency’s ICT needs. The information provided above about REOIs is equally relevant to RFTs.
RFTs are rarely restricted to a select number of vendors because of the need to ensure effective competition and to obviate any possibility of attracting criticism of bias. Agencies must not include evaluation criteria in their RFTs that discriminate against small or medium enterprises.
Contact for information on this page: ICT Procurement