Procurement Methods: Effective Techniques - Reference Guide for Procurement Professionals

Request for Qualifications (RFQ)

Certain types of services may require a qualifications-based selection. This is generally the case for architectural and engineering services in the public sector. The RFQ is a competitive procurement method, but should not be the first choice unless there it is necessary to achieve the goals of the project. Procurement professionals should consult the legal requirements applicable to the organization.

At times, this process is used as a first step in a longer process for complex projects or certain programs. The RFQ process is advantageous on highly complex, multi- discipline procurements. It allows the organization to further explore business opportunities only with those firms or teams deemed qualified. That is, the respondents that demonstrated to be the highest qualified according to the evaluation criteria. The RFQ process affords the organization the opportunity to focus only on those vendors that will ultimately be considered. This avoids a very expensive investment of time and resources for both the organization issuing the RFQ and the businesses interested getting the contract for the specific project. It should be noted that using the RFQ when another method is more appropriate will elongate the procurement process and may cause frustration of those involved.

The terminology used in an RFQ is different from a bid. In an RFQ process, the response submitted is generally referred to a “submittal” or “qualifications.” The vendor submitting the response is referred to as the “respondent.”

Objective

The objective of a qualification-based selection is to identify the highest qualified firm(s) for the specific purpose or scope of services.

Application

This method is generally appropriate when it is required by law, when it is part of a two-step or multi-step process, or to establish a list of pre-qualified firms for a specific purpose from which price proposals or bids will be requested at a later date. It requires a more in-depth responsibility review than the bid process. In the case of a pre-qualified list, no additional responsibility review is performed unless specifically stated in the prequalification program or for a specific project.

When developing an RFQ, think of three areas: The Overview (Big Picture); The Project or Program; and The Evaluation and Selection Requirements. It is easy to standardize the format and certain portions of the RFQ, such as: the background of the organization, the evaluation process, the organization-specific forms, and any other directives that may be required in every procurement process conducted by the organization. Developing a format with these standard sections may save some time in the development of the document. It is advisable to always start with a fresh format and not modify the last RFQ issued. The opportunity for errors is high when a previously issued RFQ is used as the starting document for a new RFQ.

Overview

The overview is simply a high level view of the project and the environment or situation under which services will be provided.

1. Purpose Statement: Provide a sentence or two to briefly describe the reason for the RFQ.

2. Background about the Organization: Provide a description of the organization, its purpose, and what it represents. You may find a paragraph or two on the agency’s website. The description helps provide context to the project, it’s similar to describing the setting of a story.

Unlike the bid, the level of detail provided in this section for the RFQ is not prescriptive. Instead, it provides a set of guidelines or expectations of the firm that will ultimately perform the services or participate in the program.

1. Scope of Services: The scope of services builds on the goals established in the problem/goals above. It specifies the services being sought without being prescriptive. The scope of services may include a list of tasks or responsibilities that the respondent will be required to perform if awarded the contract. Similar to the job description in a hiring situation, the more comprehensive or clear the list of tasks or responsibilities are, the easier it will be to evaluate the qualifications and experience of respondents in order to determine the best qualified respondent for the project. Vague descriptions may have undesirable results. Unlike the bid method, the RFQ does not offer details on how the services will be provided. It is seeking someone or a firm that is qualified to develop a solution or implement a project.

2. Other Requirements: Qualifications-based procurements are heavily based on the credentials of the firms and personnel proposed to perform the services. The fact that you select this method says that you have already made that determination. It is, therefore, important that it be made clear that the respondents do not have flexibility to replace the firm(s), if a team, or the key personnel who have been offered to perform the services. If the selection were to be based on a firm’s qualifications or the qualifications of its key personnel, it wouldn’t make sense to allow the replacement of the firms or personnel after the contract is awarded. This would change the profile of the respondent, unless the replacement results in equal or better qualifications. I recommend that you add a requirement regarding substitution of key personnel. For example, since the criterion for key personnel might be heavily weighted in a qualifications based process, then you may want to include a condition that prohibits the substitution of key personnel without proper express approval from an authorized representative of the agency.