What key aspect distinguishes an RFP from an RFQ?

The distinction between an RFP (Request for Proposal) and an RFQ (Request for Quotation) primarily lies in their purpose and content. An RFP is designed to gather proposals from suppliers that detail how they plan to address a specific need or project, including not only pricing but also technical approaches, methodologies, timelines, and any other relevant information that can help the issuer evaluate different solutions. In contrast, an RFQ is focused solely on obtaining price quotes for specific goods or services, typically in a more straightforward manner.

Since RFQs emphasize price quotations, they do not necessarily delve into the details of how a vendor would fulfill the requirements, which is a critical aspect of RFPs. Thus, stating that RFPs specify requirements while RFQs request price quotations accurately reflects the major functional difference between the two documents. This distinction is essential for organizations when determining how to solicit proposals or quotes based on their procurement needs.