Pre-Solicitation
Before an official solicitation is issued, you may contact suppliers to gather information on price, availability, capability, industry standards, requirements, etc. Such enquires must clearly indicate that the request is not a solicitation and there are no commitments relating to future purchases or contracts.
A Request for Information (RFI) is a standard business process whose purpose is to collect written information about the capabilities of various suppliers and conduct market research. Market research is conducted to determine the availability of commercial products and services and to identify and evaluate market practices. An RFI might outline a potential requirement and request suppliers to describe their ability to satisfy the requirement and provide ideas and suggestions on how the eventual solicitation might be structured. Responses are used to assist the contracting authorities in finalizing their plans for the requirement and in developing achievable objectives and deliverables.
An RFI is not an official solicitation and no purchase can be made based on it. An RFI should not be used to solicit bids, as it is neither binding nor an appropriate solicitation method.
The two most common solicitation methods used to acquire goods and services for NPP are Request for a Quote (RFQ) and Request for Proposal (RFP).
RFQ
An RFQ is a form of bid solicitation that is used when the bidder selection is based on price only. The contract requirements must be well defined so that bids may be evaluated and compared on the basis of price and delivery. The successful bidder is selected and the contract is awarded on the basis of lowest-priced bid that meets the requirements.
RFP
An (RFP) is a form of bid solicitation that is used when the bidder selection is based on best value rather than on price alone. An RFP should be used when suppliers are invited to propose a solution to a problem, requirement or objective, and the selection of the contractor is based on the effectiveness of the proposed solution.
Bids must be evaluated and the successful supplier must be selected in accordance with specific criteria and procedures as set out in the bid solicitation.
The NPP RFP template contains all the necessary information to satisfy the guiding principles of transparency, fairness and openness. It includes rights and obligations of both parties and it specifies the rules governing the solicitation process. The most important inputs required by Technical (TA) and Contracting Authority (CA) are a statement of work and evaluation criteria.
CFMWS does not have a centralized platform for public solicitation posting. Solicitations are sent directly to suppliers. A CA can find suppliers through research, internet, industry associations, trade groups, local papers, etc. A competitive process generally involves obtaining a minimum of three bids/quotes. It is strongly advised to obtain more than three bids/quotes to ensure adequate responses are received and the best value for money is obtained. Sometimes, bidders chose not to participate and do not submit a quote/bid. If an RFQ/RFP is sent to more than three suppliers, chances are higher that a sufficient number of bidders will respond which will result in a better selection pool.
Sole bid
If the solicitation process yields only one bid (only one supplier submits a response), it is still deemed a competitive process. In the contracting file, the CA must annotate that only one supplier responded. Directed Contract Form does not need to be completed in this case.
If the CA is not satisfied that the bid represents fair value, the CA may consider negotiating with the contractor or cancelling and reissuing the bid solicitation.
