Understanding the Difference Between EOI, RFP, & RFT in Tendering

It is often confusing to understand the various acronyms used in public procurement and its associated interpretations. Authorities use various acronyms depending on their readiness to buy the product or service making it imperative for buyers to understand these differences and act accordingly. In this article, we shall explore the subtle differences between EOI, RFP and RFT as key terms used in government tendering.

One of the most important difference in the terminology is the timeframe at which the buying process is conducted. For instance, an EOI or an Expression of Interest is an initial inquiry or inquest made by the authorities to research on the buying pattern and understand the market dynamics. It is an early stage procurement that is released when a buyer is looking for suppliers in the market or even seeking inputs to understand the requirements in a detailed manner. At this stage, the buyers are usually not looking for an immediate solution but to draft their requirements in a detailed manner. It is always advisable for firms to express interest at this stage so that they can collaborate with the buyers effectively and propose their solution in a crafted manner.

A request for proposal or an RFP is the most popular form of a tender whereby the authorities put up a detailed process with the technical specifications for vendors to respond. It is to be noted that the terms RFP and RFT (Request to Tender) are used interchangeably and imply that the authorities are looking for a qualified quotation with timelines to their requirements. An RFP is usually a comprehensive document or a set of documents that may also entail technical, financial and even legal frameworks within which the suppliers are supposed to operate. It allows a better understanding of the vendor’s capabilities along with reduced risk of public buying as this stage usually involves suppliers to pay an EMD (Earnest Money Deposit) which is refundable in case of a negative result. It also allows public authorities who usually purchase in large quantities a chance to evaluate their objective while assessing the major risks that the project can pose. A request for proposal is usually used in cases where there is a need to be transparent and the buying is of complex requirement and high volume. An RFP is also used in cases where the primary goal of the authority is not to cut down price but to have the product/service with requisite specifications. Depending on the complexity of the purchase, an RFP can be short, medium term or long term. The authorities decide the timeline based on the time suppliers would take to give all necessary information about the purchase for them to make an informed decision. With the advent of e-procurement, it has become easier to apply for bids online. However, since the electronic procurement is now widespread across all countries and all authorities, it is important for companies to have a monitoring service that can aggregate all tenders and intimate them about the upcoming RFP’s in order to ensure they do not miss out on any potential opportunities. Another advantage of using such a notification service is that it allows companies to understand these bifurcations easily without having to go through the documents to understand the nature of procurement.

An Expression of Interest (EOI) on the other hand is a preliminary information gathering activity where authorities try to research the product/service which they are buying before the actual RFT is out. Similar to RFT and RFP, an EOI takes numerous forms such as Supply registration, Prior Information notice, Preliminary information and Market research information etc. In such an inquest, bid documents are usually not made available and are only a registration of the suppliers that the authorities wish to accumulate. The type of procurement conducted depends largely on the product and area of purchase. It is important for companies to register for such prior engagements as the tenders are only then issued to selected and registered suppliers once they are out. Thus, overall the authorities make two types of purchases; one where they acquire information about the purchase to draft the bid package and second where they actually publish the bid with technical, legal and financial specifications. It is always a good idea to see EOI’s and supplier registration opportunities as a chance to engage with the buyer in the early stage of the procurement. This gives a fair chance to the tenderer to understand the supplier and the supplier to ensure they meet the product specifications precisely. A tender aggregator website can give all relevant information about different types of procurement on the day of its release so that companies get more time to prepare for the bid. It also gives them a chance of early engagement with the authorities so that they can discuss their solution in more detail.

To conclude, it is important to make sense of the different acronyms and act accordingly when it comes to responding to government procurement requirements. An ideal business would try and register for supplier registration/EOI opportunities while bidding in those tenders where it can fulfil the requirements precisely. In order to increase the winning chances, companies are required to subscribe to leading tender portals like Tender Impulse as they provide comprehensive information on all government procurement happening all across the world. Doing this can enhance their productivity as it saves valuable time and effort to browse through the proceedings. We hope this article helps in resolving the confusion revolving around these terms. Our consultants can further help in understanding specific requirements. Register for a Free Trial today and see how our portal can benefit your business!