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What is the difference between a quote, a bid and a proposal?

Friday, January 31, 2014/Categories: Vendor

The term bid is frequently used to refer to all competitive purchasing activity.  SMART uses several types of procurement methods in order to get the best quality and most cost effective products and services.  They are as follows:

Invitation for Bid (IFB)

  • Refers to a sealed bid for purchases in excess of $50,000
  • Specifications are detailed and specific
  • Award is based solely on cost
  • No discussions with the bidders

Request for Proposal (RFP)

  • For purchases in excess of $50,000
  • Specifications or statement of work is not specific or detailed
  • Award is based on cost and other factors
  • Discussion with proposers is not only likely but necessary

Request for Quote (RFQ)

  • The quote method is issued for purchases of $50,000 or less

Informal Quote (IQT)

  • SMART calls three vendors for over the phone quotes
  • Award is based solely on cost
  • The quote method is issued for purchases of $15,000 or less

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