RFPs versus RFQs - What's the Difference?

In the selection of consultants, what’s the difference between a Request for Proposals (RFP) and a Request for Qualifications (RFQ)?

Different agencies use different processes and there doesn’t seem to be much unanimity about what each of these terms mean. So here’s one opinion on the difference and when each should be used. I would be very interested in any comments and observations you may have about this subject.

A proposal in response to a Request for Proposals generally has three major elements.

First, as the name suggests, a Request for Proposals requests that consultants submit a “proposal” about how the consultant would approach the consultant engagement being solicited. An agency should use an RFP when the service being sought might be performed differently depending on who is selected. The public agency wants to get the benefit of various ideas and approaches. In evaluating an RFP, one of the evaluation criteria should be an evaluation of the proposal and how creative it is and how closely it meets or doesn’t meet the agency’s objectives.

Second, in addition to asking how the consultant would perform the work, the RFP also asks who would perform the work. Thus, the proposal should include some information about the specific personnel who would be assigned to the work and their relevant experiences, and this would be a factor in the evaluation of the proposals.

Third, the proposal should include the consultant’s proposed price or pricing structure for performing the work, something that also would be evaluated as part of the selection criteria by the public agency.

Under an RFP, a public agency wants to get the best financial deal from the most qualified consultant who has the most effective and creative solution to meet the agency’s objectives.

A Request for Qualifications generally requests only the qualifications of the personnel who would be assigned to perform the work, and does not ask for the consultant’s proposal or approach, nor does it ask about the consultant’s price for performing the work. Generally, an RFQ is used when the public agency is required by law to select certain disciplines of consultants under what is known as “Qualifications Based Selection.” Frequently used in the selection of architects and engineers, Qualifications Based Selection is a process whereby the public agency selects the most highly qualified firm without regard to price, and then enters into negotiations with that firm. In Washington State, chapter 39.80 RCW, requires public agencies to use Qualifications Based Selection when obtaining the services of architects, engineers, landscape architects, and land surveyors.

If an public agency is not bound by Qualifications Based Selection laws, it is a better idea to use an RFP where price can be a factor in the selection process along with the qualifications and approach of the consultant to perform the work.