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Request for Quotation (RFQ) method is used for procurement of low value goods and works.
Request for Quotation method has been described in the rules 69, 70, 71, 72 and 73 of Public Procurement Rules 2008. RFQ is a simple procurement method having little amount of processing steps. In this method the supplier or contractor does not need to have past experience. So this is the entry point in the business of public sector procurement for new suppliers or contractors.
(3) Use of RFQ Method shall be approved by the Head of the Procuring Entity (HOPE) or an officer authorised by him unless the RFQ method was approved in the Annual Procurement Plan (APP)
(4)(b) The RFQ Method should not require complex Documentation or all the formalities of a full Tendering process.
(5) Quotations may be requested in the form of -
(a) unit rate prices, provided quantities can be estimated with a reasonable degree of accuracy; or
(b) “cost plus fee” arrangements, when quantities cannot be reasonably determined or estimated in advance; or
(c) a lump sum, if the Procuring Entity has prepared an accurate cost estimate for the Works or physical Services.
(2) A tenderer may be required to furnish documentary evidences demonstrating its eligibility by providing a valid trade license, Tax Identification No. (TIN), VAT registration and Bank solvency certificate.
(6) No Tender or Performance Securities are required when the RFQ Method is used.
(2) Newspaper advertisement is not required; but shall publish that advertisement in the website of the PE, if any, including its Notice Board and shall send with request for publication to the administrative wing of the another nearby Procuring Entities.
(3) RFQ Document shall be issued to prospective vendors or contractors for free of charge.
(4) Time for invitation shall be kept minimal but reasonable.
(5) The Procuring Entity shall carefully select the Tenderers to be invited to submit quotations into account its specific requirements as well as the reputation and capability of the Tenderers.
(6) The PE shall request quotations from as many Tenderers as practical and shall obtain and compare at least three (3) responsive quotations to establish the competitiveness of the quoted price,
(7) The Procuring Entity should, in order to minimize the risk of not receiving satisfactory number of responsive quotations, request all potential Tenderers to confirm whether or not they will be submitting a quotation in order to invite other Tenderers to replace those who are not submitting a quotation.
(8) The PE shall, in order to diversify the source of supply and treat all potential Tenderers equally as long as they provide good performance and economic price, ensure that the same Tenderers are not always invited to quote.
(9) The RFQ Method for national Procurement is generally limited to Persons resident and commercially registered in Bangladesh and to the supply of Goods, of both local and foreign manufacture, which are usually available from more than one source within Bangladesh at a competitive price.
(2) The Procuring Entity shall stamp all quotations, received sealed or otherwise, indicating both the date and time of receipt and shall submit without opening to the Chairperson of the Tender Evaluation Committee (TEC) for evaluation.
(3) If the Procuring Entity has not received at least three (3) responsive quotations within the given time, it shall verify with the other Tenderers to whom it sent a request for quotation whether or not they intend to submit a quotation, and if so how soon.
(4) The Procuring Entity may give reasonable amount of additional time for other Tenderers to submit quotations.
(2) In the case of evaluation of quotations, only the requirements specified in the Request for Quotations is to be examined, following which the lowest evaluated quotation shall be selected for award of the work order provided that in special circumstances, the TEC may recommend an award to a Tenderer who has not submitted the lowest priced quotation when such recommendations are fully justified on technical, social or economic grounds.
(3) A slightly higher price may be justified for faster delivery or immediate availability in cases of extreme urgency or when late delivery may result in heavy consequences for the purchaser, provided that in such cases, the intention to favour early delivery should be clearly indicated in the RFQ.
(4) The Evaluation Report must demonstrate clearly that the award is based on sound economic criteria.
(5) The winning Tenderer shall be notified immediately by sending him or her purchase order in the case of Goods or by inviting him or her to sign a standard contract in the case of Works and Physical Services.
(6) The awarded Tenderer shall confirm in writing receipt of the purchase order or work order to the Procuring Entity.
(7) If the Procuring Entity couldn’t receive the minimum required number of quotations, it shall refer the matter to the HOPE recommending either to cancel the Procurement or to use other Procurement methods such as Direct Procurement.
Rule 69: Conditions and Procedures for Use of Request for Quotation Method (RFQ)
(1) A Procuring Entity (PE) may procure by using the RFQ method for - i) readily available in the market standard off-the-shelf Goods and ii) low value simple Works.(3) Use of RFQ Method shall be approved by the Head of the Procuring Entity (HOPE) or an officer authorised by him unless the RFQ method was approved in the Annual Procurement Plan (APP)
(4)(b) The RFQ Method should not require complex Documentation or all the formalities of a full Tendering process.
(5) Quotations may be requested in the form of -
(a) unit rate prices, provided quantities can be estimated with a reasonable degree of accuracy; or
(b) “cost plus fee” arrangements, when quantities cannot be reasonably determined or estimated in advance; or
(c) a lump sum, if the Procuring Entity has prepared an accurate cost estimate for the Works or physical Services.
Rule 70: Documentation Needed for the RFQ Method
(1) The Request for Quotations shall contain a clear statement concerning the requirements of the Goods or Works, such as quality, quantity or volume of Goods; scope of physical Services and their duration; terms and time of delivery or completion; and payment terms and invoicing procedures; any special requirements.(2) A tenderer may be required to furnish documentary evidences demonstrating its eligibility by providing a valid trade license, Tax Identification No. (TIN), VAT registration and Bank solvency certificate.
(6) No Tender or Performance Securities are required when the RFQ Method is used.
Rule 71: Procedures for use of Request for Quotations Method Invitation
(1) The PE shall invite quotations from Suppliers by letter, fax or electronic mail, indicating the last date by which the quotations shall be submitted.(2) Newspaper advertisement is not required; but shall publish that advertisement in the website of the PE, if any, including its Notice Board and shall send with request for publication to the administrative wing of the another nearby Procuring Entities.
(3) RFQ Document shall be issued to prospective vendors or contractors for free of charge.
(4) Time for invitation shall be kept minimal but reasonable.
(5) The Procuring Entity shall carefully select the Tenderers to be invited to submit quotations into account its specific requirements as well as the reputation and capability of the Tenderers.
(6) The PE shall request quotations from as many Tenderers as practical and shall obtain and compare at least three (3) responsive quotations to establish the competitiveness of the quoted price,
(7) The Procuring Entity should, in order to minimize the risk of not receiving satisfactory number of responsive quotations, request all potential Tenderers to confirm whether or not they will be submitting a quotation in order to invite other Tenderers to replace those who are not submitting a quotation.
(8) The PE shall, in order to diversify the source of supply and treat all potential Tenderers equally as long as they provide good performance and economic price, ensure that the same Tenderers are not always invited to quote.
(9) The RFQ Method for national Procurement is generally limited to Persons resident and commercially registered in Bangladesh and to the supply of Goods, of both local and foreign manufacture, which are usually available from more than one source within Bangladesh at a competitive price.
Rule 72: Submission of Quotations
(1) The Tenderer shall have the choice to submit its offer in a sealed envelop or by fax or by e-mail.(2) The Procuring Entity shall stamp all quotations, received sealed or otherwise, indicating both the date and time of receipt and shall submit without opening to the Chairperson of the Tender Evaluation Committee (TEC) for evaluation.
(3) If the Procuring Entity has not received at least three (3) responsive quotations within the given time, it shall verify with the other Tenderers to whom it sent a request for quotation whether or not they intend to submit a quotation, and if so how soon.
(4) The Procuring Entity may give reasonable amount of additional time for other Tenderers to submit quotations.
Rule 73: Evaluation of Quotations and Issuance of Purchase or Work Order
(1) All quotations shall be examined and evaluated by a Tender Evaluation Committee on the very submission date after the deadline specified.(2) In the case of evaluation of quotations, only the requirements specified in the Request for Quotations is to be examined, following which the lowest evaluated quotation shall be selected for award of the work order provided that in special circumstances, the TEC may recommend an award to a Tenderer who has not submitted the lowest priced quotation when such recommendations are fully justified on technical, social or economic grounds.
(3) A slightly higher price may be justified for faster delivery or immediate availability in cases of extreme urgency or when late delivery may result in heavy consequences for the purchaser, provided that in such cases, the intention to favour early delivery should be clearly indicated in the RFQ.
(4) The Evaluation Report must demonstrate clearly that the award is based on sound economic criteria.
(5) The winning Tenderer shall be notified immediately by sending him or her purchase order in the case of Goods or by inviting him or her to sign a standard contract in the case of Works and Physical Services.
(6) The awarded Tenderer shall confirm in writing receipt of the purchase order or work order to the Procuring Entity.
(7) If the Procuring Entity couldn’t receive the minimum required number of quotations, it shall refer the matter to the HOPE recommending either to cancel the Procurement or to use other Procurement methods such as Direct Procurement.
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