Project Management: Foundations to Practice · Procurement and Contract Management
The Procurement Process
Vendor selection criteria decided after proposals arrive unconsciously favor whichever proposal already looks most appealing. This chapter covers why sequencing this correctly matters.
A formal procurement process typically begins with a Request for Proposal (RFP) or Request for Quotation (RFQ), documents that describe the buyer's requirements and invite vendors to submit competing responses [1]. An RFP is generally used when the buyer wants vendors to propose their own approach to solving a problem, while an RFQ is used when requirements are well-defined and price is the primary differentiator between otherwise similar vendor offerings.
Key Takeaways
- An RFP invites vendors to propose their own solution approach; an RFQ is used when requirements are defined and price differentiates.
- Selection criteria defined before proposals arrive avoid the hindsight bias of favoring whichever proposal already looks appealing.
- Explicit criteria weighting, decided in advance, forces a more disciplined and defensible comparison than holistic gut-feel evaluation.
- Adjusting selection criteria after proposals arrive to favor a preferred vendor undermines the process and creates real legal and reputational risk.