Finance Index
What is the difference between an RFQ, RFP, and RFI - and how do I run a 3-bid process?
Reference guide to supplier selection RFQ 3 bid, including request intake, purchasing controls, approval routing, vendor coordination, and finance visibility.
An RFI gathers information to learn the market; an RFQ asks vendors to quote price on a defined spec; an RFP asks for proposals when you need solutions and approach, not just price. For most mid-market purchases you don't need a formal sourcing event - a lightweight "three bids and a buy" (collect a few comparable quotes, document the comparison, pick with rationale) satisfies both good practice and the audit file.
At a Glance
| Aspect | Short Answer | Why It Matters |
|---|---|---|
| The difference between an RFQ | An RFI gathers information to learn the market; an RFQ asks vendors to quote price on a defined spec; an RFP asks for proposals when you need solutions and approach, not just price. | Reduces payment errors, timing issues, and reconciliation cleanup. |
| Workflow | Above a sensible dollar threshold, require a few comparable quotes for the same scope, compare them on more than price. | Keeps spend controlled before the commitment is made. |
| Related terms | RFI to explore the market, RFQ to get price on a known spec, RFP to evaluate solutions and approach where price isn't the whole story. | Reduces payment errors, timing issues, and reconciliation cleanup. |
| At what dollar threshold should | Set it where the potential savings justify the effort to collect and compare quotes - high enough to skip routine buys, low enough to cover genuinely competitive spend. | Keeps vendor records and payment decisions reliable. |
| Audit evidence | Keep the quotes received, a side-by-side comparison on price and non-price factors, and a short rationale for the selection - attached to the purchase record. | Keeps evidence clear and reduces control risk. |
How do I run a simple 3-bids-and-a-buy process for mid-market purchases?
Above a sensible dollar threshold, require a few comparable quotes for the same scope, compare them on more than price - total cost, terms, delivery, risk, quality - record the rationale for the choice, and keep the quotes and comparison in the file. That's it. The discipline is comparing like-for-like (same spec to each vendor) and documenting why you chose, so the decision is defensible without a procurement department or sourcing software. For purchases below the threshold, or genuine sole-source situations, skip it with a documented reason.
What is an RFQ vs RFP vs RFI - which one do I need?
RFI to explore the market, RFQ to get price on a known spec, RFP to evaluate solutions and approach where price isn't the whole story. Most defined mid-market buys need an RFQ or a simple 3-quote comparison, not a full RFP.
At what dollar threshold should competitive quotes be required?
Set it where the potential savings justify the effort to collect and compare quotes - high enough to skip routine buys, low enough to cover genuinely competitive spend. Document a sole-source exception for cases where competition isn't possible.
How do I document quote comparisons for the audit file?
Keep the quotes received, a side-by-side comparison on price and non-price factors, and a short rationale for the selection - attached to the purchase record. The comparison plus rationale is what makes the decision auditable.
How do I evaluate supplier quotes beyond price - quality, terms, risk, delivery?
Score on total cost of ownership, payment and delivery terms, quality/track record, and risk (financial stability, single-source exposure), not just the headline price. The cheapest quote isn't the lowest cost if terms or reliability are worse.
How do I run a lightweight vendor evaluation without enterprise sourcing software?
A simple comparison template - vendors as columns, criteria as rows, weighted scores - in a spreadsheet handles most mid-market evaluations. Enterprise sourcing tools are for high-volume, frequent strategic sourcing you probably don't have yet.
How do I handle situations where only one supplier can deliver - sole source documentation?
Write a sole-source justification (why only this supplier can meet the need), get the appropriate approval, and file it. The documentation is the control that keeps "sole source" from becoming "didn't bother to compare."
How do I request and compare quotes for a software purchase vs a goods purchase?
Goods: same spec, quantity, and delivery terms to each vendor, compare unit and total price. Software: comparable scope (seats, term, features, support, security) - and weight non-price factors heavily, since software lock-in and fit matter more than a small price delta.
Should requesters collect their own quotes or should a central buyer do it?
Requesters can collect quotes for routine buys with guidance; a central buyer or procurement-savvy reviewer handles larger or more complex sourcing. The control is that the comparison is documented and the decision-maker isn't the sole interested party.
How do nonprofits meet federal grant procurement standards (2 cfr 200) for competitive procurement?
Follow the applicable thresholds for micro-purchases, small purchases, and formal competition, document competition (or a justified exception) at each level, and retain records per the grant's requirements. The federal standards effectively dictate the procurement process for grant-funded spend - build your policy to match.
Stampli perspective
Stampli's position is that spend control should start before the invoice arrives. When requests, approvals, purchase orders, invoices, and payments stay connected, finance can manage policy, coding, and evidence as one workflow instead of reconstructing the story after the fact.