Sometimes referred to simply as an RFT, a request for tender is a document that serves as an invitation for suppliers and various types of vendors to provide goods and services to the issuer of the document. For the most part, this type of invitation is utilized by government entities ranging from the local to the national level. A RFT provides a similar function to the request for proposal or RFP in the private sector.
One of the distinguishing characteristics of a request for tender is that the invitation is not issued to a select group of potential suppliers. This is different from a request for proposal, where the document may be either somewhat broad or highly detailed, and is only directed to vendors that the company feels can meet its needs. Governments instead focus on providing very specific information about the types of goods they want, and invite a wide range of potential vendors to supply. Any business or individual that meets the criteria established within the text of the document is free to apply and possibly be granted the status of an authorized supplier.
In some countries, responding to a request for tender requires that the potential vendor submit what is known as a request for information, or RFI. This document essentially provides background on the potential vendor, including details on the number of years in business, information regarding the financial stability of the business, and any other factors that may be relevant to qualifying as an authorized supplier for the government. A copy of the document may be submitted along with the submission of the RFT, or the vendor may be required to affirm that an RFI was previously submitted, referencing the date and government entity that received the request for information.
There is no standard template for preparing a request for tender. The final document will reflect current regulations and standards that the government is required to observe. This means that the final draft is likely to be highly detailed, and provide any potential suppliers with adequate information to determine if they should or should not respond to the request. Requirements of this type prevent vendors who do not meet government standards from spending time crafting a response that is highly likely to be considered, while also minimizing the number of responses that must be reviewed by the entity that issued the original request for tender.
