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PPP TOOLKIT for Improving PPP
Decision-Making Processes
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Sector: State Highway  |  Module 2: Work through the PPP process

Qualifying - RFQ and shortlisting

The Request for Qualification (RFQ) is used in multi-stage bidding to select a shortlist of qualified bidders. The RFQ is often the first formal stage in the procurement process, although it may follow an EOI when that is deemed necessary.

An RFQ is used to narrow down the list of potential bidders to only those who are technically and financially qualified and those possessing requisite skill sets for implementation of the project. These shortlisted firms are then invited to submit bids for the project at the RFP stage.

By reducing the number of bidders the overall cost of the bid process is lowered. This cost is faced by both the bidders, who have to prepare the bids, and by the Sponsor who has to evaluate them.

Reducing the group of qualified bidders can also encourage stronger bids. The selected bidders will be better able to assess their chances of winning amongst a small group. They are then likely to invest greater effort in the bid process.

There should be at least rough drafts of most critical project documents in advance of issuing the RFQ. These should have been prepared in Phase 2 before the application for In-principle Clearance. If these drafts have not been prepared in advance the criteria for the RFQ and shortlisting could be faulty and this would result in a lengthy delay between shortlisting and issuing the RFP. Final drafts will be prepared following the qualification stage.

 

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