Throughout the evolution of project and public procurement management, terms and expressions in the field have increasingly been used interchangeably. Yet, these terms—such as Request for Quotations (RFQ), Request for Proposals (RFP), Request for Expressions of Interest (REOI), and Invitation for Bids (IFB)—are technically indicative of distinct concepts.
Organizational procurement policies often establish thresholds for the application of RFQs, RFPs, REOIs, and IFBs, defining their use within specific procurement methods or strategies. However, while some of these terms are often labeled as procurement methods, they should be more accurately categorized as solicitation tools. Despite this distinction, professional jargon has evolved in such a way that these tools are increasingly being conflated with methods or strategies.
This article seeks to disentangle these overlapping terms by examining the tools and methods that are often used interchangeably. By the conclusion of this discussion, readers will be able to clearly differentiate between solicitation tools and their associated procurement methods, fostering a more precise understanding of public and project procurement practices.
Understanding Procurement Methods and Their Application
Procurement methods are strategies used to engage the market to acquire goods, works, and services required by an organization to achieve its objectives and goals. The choice of a procurement method is often determined by the cost of the item to be procured or the nature of the requirement. Most organizational procurement policies define thresholds that dictate when a particular method should be used.
A threshold refers to a monetary value that determines the application of a specific procurement method, as outlined in an organization’s procurement policy. Thresholds can take the form of a ceiling—the maximum cost for which a particular method is applicable—or a floor—the minimum cost required for a specific method to be used. Additionally, the procurement management team may select the procurement method based on the nature or complexity of the requirement.
For example, the nature of the market may vary depending on whether the requirement can be sourced from multiple suppliers, a single supplier, or just a few suppliers. Procurement decisions may also be influenced by emergencies, such as the need for the prompt delivery of goods and services to address disasters like earthquakes or hurricanes. Similarly, crises like the COVID-19 pandemic or the Ebola Virus Disease outbreak, which disrupts supply chains and markets, may call for specific procurement strategies. Another consideration is whether the requirement is available in the local market or must be sourced internationally.
The level of competition in the market can also influence the choice of procurement method. From a supplier perspective, this competition may determine whether the procurement process involves full competition, limited competition, or a single source. For instance:
- Full Competition: Planners may recommend international requests for quotations (RFQs) for goods that are unavailable in the local market but can be supplied by multiple vendors internationally. This is often appropriate for items that fall within the threshold for Shopping and are readily available in foreign markets.
- Limited Competition: An RFQ may be restricted to the local market when the required goods or services are readily available locally. Similarly, limited competitive bidding (or restricted bidding) may be used when the procurement is only available from a few known suppliers or when the administrative costs of a more competitive process outweigh the value of the item being procured.
- Single Source: In some cases, procurement may rely on a single known supplier, especially when no alternative options exist, or time constraints make broader competition impractical.
For example, Liberia’s Amended Public Procurement and Concessions Act (2010), Section 50, permits the use of restricted bidding under specific conditions. These include scenarios where only a few suppliers are known to the procurement entity or when the cost of conducting an open competitive process exceeds the value of the procurement itself. Similarly, the UNCITRAL Model Law on Public Procurement allows for restricted bidding but defines it as an exception rather than the norm. While it aligns with Liberia’s approach, the Model Law places greater emphasis on transparency, the documentation of justification for using restricted bidding, and minimizing disruptions to competition. These safeguards are designed to protect the integrity of the procurement process and ensure fairness and accountability.
In summary, the selection of a procurement method depends on factors such as cost thresholds, market conditions, the nature of the requirement, and the urgency of the situation. Understanding these factors and applying them appropriately ensures effective and efficient procurement that aligns with organizational policies and objectives.
What is Solicitation in Procurement?
In procurement, the term solicitation—which literally means “to ask for something”—refers to the process of requesting offers or bids to be submitted. Solicitation encompasses the stage beginning with the advertisement and issuance of bidding documents in full competition and extends to the issuance of bidding documents in less competitive or non-competitive methods. These methods may include Shopping, Limited Competitive Bidding, Force Account, or Direct Contracting. The solicitation process concludes with the submission of bids by potential suppliers or contractors.
What is a Solicitation Tool?
A solicitation tool refers to a mechanism used to invite bids or offers from the market during the procurement process. Solicitation tools typically take the form of standard bidding documents tailored to specific procurement needs. Different solicitation tools are used for different procurement methods, ensuring that the process is aligned with the nature of the requirement and the procurement strategy being employed.
Examples of solicitation tools include:
- Standard Bidding Documents for Goods and Works
- Invitation for Bids (IFB)
- Request for Proposals (RFP)
- Request for Quotations (RFQ)
- Request for Expressions of Interest (REOI)
- Request for Consultant Qualifications (CQ)
These tools, or components within them, are often mistakenly conflated with the procurement methods they accompany. This confusion has contributed to the evolution of procurement jargon, where solicitation tools and methods are sometimes used interchangeably. However, it is important to recognize that solicitation tools are distinct from procurement methods. While the tools facilitate the invitation and receipt of offers, methods refer to the strategies or frameworks used to engage the market.
Common Procurement Methods and Their Associated Solicitation Tools
- Full Competition
Full competition is a procurement method characterized by the absence of restrictions on the number of bids solicited or the territorial scope of the solicitation. In this method, bids are widely advertised—typically for a minimum of four to six weeks—in widely read publications or platforms such as the United Nations Development Business (UNDB) or DgMarket. For more complex procurement requirements, the submission lead-time may be extended to allow bidders adequate time to prepare comprehensive bids.
The primary solicitation tool used for full competition is the Standard Bidding Documents for Goods, Works, and Non-Consulting Services for competitive bidding. In some public sector procurement laws, such as Liberia’s Amended Public Procurement and Concessions Act (PPCA), 2010, this method is referred to as International Competitive Bidding (ICB). It is worth noting that some procurement systems also use specialized solicitation tools for specific procurement types, such as health procurement, information technology, or non-consulting services.
- National Competitive Bidding
National Competitive Bidding (NCB) is a procurement method that restricts competition to the local economy of a country. This method is typically used to encourage participation from domestic suppliers and contractors. The minimum lead-time for bid submission is usually at least four weeks, though this may vary depending on the complexity of the requirement.
The solicitation tool used in NCB is the Standard Bidding Documents for Goods or Works for National Competitive Bidding.
- Shopping or Request for Quotations
Shopping is a simplified procurement method characterized by the solicitation of quotations from a limited number of suppliers. It is important to note that Shopping refers to the procurement method, while the solicitation tool employed in this method is the Request for Quotations (RFQ).
Policies governing Shopping typically require quotations from at least three vendors. However, for less complex procurements, some policies may permit obtaining quotes from as few as two suppliers. The minimum lead time for bid submission can vary between two working days and two weeks, depending on the applicable policy. For more complex requirements, the lead time may be extended to ensure adequate preparation and submission by suppliers.
The RFQ, as the solicitation tool in Shopping, is a straightforward document that is less detailed than the Standard Bidding Documents used for more formal procurement processes such as national or international competitive bidding. Depending on the scope of the procurement, Shopping may be advertised either locally or internationally:
- Local Shopping: Used when the required goods or services are readily available in the local market.
- International Shopping: Applied when the local market cannot meet the procurement needs or when broader competition is desired.
In cases where the procurement entity lacks a comprehensive database of potential suppliers or aims to ensure broader market participation, advertising may also be necessary. While policies stipulate a minimum lead time for bid submissions, the complexity of the procurement ultimately dictates the time allowed to ensure a fair and effective process.
- Quality and Cost-Based Selection (QCBS) and Quality-Based Selection (QBS)
Quality and Cost-Based Selection (QCBS) and Quality-Based Selection (QBS) are competitive procurement methods used for acquiring consultancy services. These methods are the consultancy equivalent of full competition in goods and works procurement:
- QCBS: Employed when the terms of reference (TOR) and budget for the consultancy can be easily defined.
- QBS: Used for more complex consultancy services where the scope of work cannot be accurately or fully defined at the outset.
The primary solicitation tool used for both QCBS and QBS is the Request for Proposals (RFP), which is the standard bidding document for consultancy services procurement. Additionally, the RFP may be used for goods procurement where there is a service component or where suppliers are required to provide innovative solutions.
In cases where no known consultants can be directly solicited, a Request for Expressions of Interest (REOI) may be issued. The REOI invites firms that meet the minimum qualification criteria outlined in the document to express their interest in the procurement. Based on the responses received, a shortlist of qualified firms is created, and those shortlisted are subsequently issued the Request for Proposals (RFP).
Conclusion
Procurement is a constantly evolving profession, and with it, the terminology used by practitioners continues to develop. A good understanding of procurement terminologies is essential to avoid confusion and ensure effective communication. Misinterpretation of these terms can result in operational inefficiencies, conflicts, and delays that hinder the achievement of procurement objectives.
A particularly prevalent issue in procurement practice is the conflation of procurement methods and solicitation tools. Procurement methods—such as Shopping, National Competitive Bidding (NCB), International Competitive Bidding (ICB), Quality- and Cost-Based Selection (QCBS), and others—refer to overarching strategies used to engage the market. Solicitation tools—such as Requests for Quotations (RFQ), Invitations to Bid (IFB), Requests for Proposals (RFP), and Requests for Expressions of Interest (REOI)—are the instruments used to implement these methods.
Unfortunately, some procurement policies, such as the Amended Public Procurement and Concessions Act of Liberia (PPCA), the UN Procurement Handbook, and the UNCITRAL Model Law on Public Procurement inadvertently blur these distinctions by labeling solicitation tools as procurement methods. This misclassification, though unintended, can create confusion in procurement practice and training, ultimately affecting procurement outcomes.
The distinction between procurement methods and solicitation tools is crucial for effective practice, as demonstrated in the table below:
| Procurement Method | Definition | Corresponding Solicitation Tool(s) |
| Shopping | A method for small-value/simple procurement of goods and services | Request for Quotations (RFQ), Invitation to Quote (ITQ) |
| International Competitive Bidding | A method for high-value or complex procurements, open to all eligible suppliers. | Invitation for Bid (IFB), Bidding Documents |
| National Competitive Bidding | A method for high-value or complex procurements, open to all eligible suppliers. | Invitation for Bid (IFB), Bidding Documents |
| QCBS, QBS, FBS, LCS | Methods for complex procurements requiring evaluation of both technical and cost factors. | Request for Expressions of Interest (REOI) and Request for Proposals (RFP) Documents |
| Direct Contracting/Single Source | A non-competitive method for specific circumstances, such as urgency or sole supplier. | Letter of Invitation (LOI) and Direct Negotiation Documents |
| Restricted or Limited Bidding | A method restricted to a preselected list of suppliers. | Invitation for Bid (restricted), Bidding Documents |
This distinction is not merely semantic but fundamental to the proper execution of procurement processes. For example:
- When procuring office supplies, Shopping may be the appropriate procurement method, based on the low value and simplicity of the requirement. The RFQ serves as the solicitation tool, inviting suppliers to submit quotations. Referring to the RFQ as the procurement method would obscure the strategic rationale and create ambiguity.
- For higher-value or more complex procurements, International Competitive Bidding may be selected as the method to ensure broad market participation. The IFB or Bidding Documents are then employed as solicitation tools to engage suppliers and ensure a transparent process.
Recognizing and maintaining this distinction not only prevents miscommunication but also ensures alignment with procurement principles such as transparency, accountability, and fairness. By clearly delineating procurement methods from solicitation tools in policies, training materials, and operational practices, practitioners can enhance their ability to design, implement, and manage procurement processes effectively.
In conclusion, clarity in procurement terminology fosters better understanding among stakeholders, enhances the quality of procurement outcomes, and ultimately contributes to more efficient, transparent, and impactful procurement practices. As procurement professionals, we must strive to embed this understanding in our policies, practices, and capacity-building efforts to ensure continuous improvement in the field