Understanding the difference between RFT, EOI, and RFQ isn't just procurement jargon—it's the foundation of tender success. Each document type requires a fundamentally different response strategy, evaluation approach, and win methodology. Confuse them, and you'll waste resources on the wrong approach.
This comprehensive guide breaks down exactly how to identify, approach, and win each type of Australian tender opportunity. Whether you're facing a $50,000 RFQ or a $50 million RFT, you'll know exactly how to structure your winning response.
Quick Reference: RFT vs EOI vs RFQ at a Glance
Aspect | RFQ | EOI | RFT |
---|---|---|---|
Purpose | Price comparison | Capability assessment | Full procurement |
Typical Value | $10K - $200K | $500K - $50M+ | $200K - $100M+ |
Duration | 1-2 weeks | 2-4 weeks | 4-8 weeks |
Key Focus | Competitive pricing | Innovation & vision | Value for money |
Request for Quotation (RFQ): The Price-Focused Sprint
What is an RFQ?
An RFQ is used when the buyer knows exactly what they want and primarily cares about getting the best price. The specifications are detailed, the scope is well-defined, and the evaluation is predominantly cost-based.
Typical RFQ Characteristics
- Contract values: Usually $10,000 - $200,000
- Response time: 7-14 days (sometimes just 5 days)
- Document length: 5-15 pages typically
- Price weighting: 60-80% of total evaluation score
- Competition: Often 5-15 invited suppliers
When You'll See RFQs
- Routine maintenance contracts
- Standard equipment purchases
- Straightforward service delivery
- Repeat procurement of known requirements
- Small to medium value contracts
RFQ Winning Strategy: Competitive Pricing with Solid Delivery
The 80/20 Rule: Spend 80% of your time perfecting the pricing and 20% on capability demonstration.
Pricing Strategy for RFQs
- Sharp pencil approach: This is about winning on price, so minimize margins
- Value engineering: Suggest cost-saving alternatives within the specification
- Lifecycle costing: Show total cost of ownership, not just upfront price
- Payment terms: Offer discounts for early payment or longer payment terms
- Optional extras: Keep base price competitive, price options separately
RFQ Response Template Structure
- Executive Summary (1 page) - Your key value proposition and total price
- Pricing Schedule (2-3 pages) - Detailed cost breakdown exactly as requested
- Technical Compliance (2-4 pages) - Confirm you meet all specifications
- Company Capability (1-2 pages) - Brief demonstration of ability to deliver
- Terms & Conditions (1 page) - Any variations to standard terms
- Supporting Documentation - Insurance, certifications, references
"In RFQs, the buyer has already decided what they want. Your job is to prove you can deliver it at the best price with minimal risk." - Former Commonwealth Procurement Manager
Common RFQ Mistakes to Avoid
- Over-engineering the response: Keep it simple and focused on requirements
- Unclear pricing: Make sure every line item is crystal clear
- Adding unnecessary extras: Stick to what's asked for
- Competing on features: Price is king in RFQs
- Generic capabilities: Be specific about your ability to deliver this exact requirement
Expression of Interest (EOI): The Vision and Innovation Showcase
What is an EOI?
An EOI is used to identify potential suppliers who have the capability and vision to deliver complex projects. It's about demonstrating innovation, understanding, and strategic approach rather than detailed pricing.
Typical EOI Characteristics
- Contract values: Often $500,000 - $50M+ (wide range)
- Response time: 2-4 weeks
- Document length: 15-30 pages with strict page limits
- Price weighting: Often no pricing required, or indicative only
- Next stage: Usually shortlists 3-6 suppliers for RFT stage
When You'll See EOIs
- Major infrastructure projects
- Complex IT transformations
- Innovative service delivery models
- Strategic partnerships
- First-of-kind projects requiring creative solutions
EOI Winning Strategy: Demonstrate Vision and Capability
The Innovation Imperative: EOIs are won by suppliers who understand the buyer's vision and can enhance it with innovative approaches.
Key Elements for EOI Success
- Strategic understanding: Show you grasp the buyer's bigger picture
- Innovative approach: Suggest improvements or alternatives to their thinking
- Relevant experience: Prove you've successfully delivered similar complex projects
- Team capability: Highlight key personnel and their specific expertise
- Partnership approach: Show how you'll work collaboratively with their team
EOI Response Template Structure
- Executive Summary (2 pages) - Your vision and unique value proposition
- Understanding & Approach (6-8 pages) - Demonstrate deep comprehension of requirements
- Innovation & Added Value (4-6 pages) - How you'll enhance their objectives
- Team & Capability (4-6 pages) - Key personnel and their relevant experience
- Relevant Experience (4-6 pages) - Case studies of similar successful projects
- Partnership Approach (2-3 pages) - How you'll work with their stakeholders
- Supporting Documentation - Company profile, certifications, references
EOI Evaluation Criteria (Typical Weightings)
- Understanding of Requirements (25%) - Do they "get it"?
- Relevant Experience (25%) - Have they done this successfully before?
- Team Capability (20%) - Do they have the right people?
- Innovation & Approach (15%) - Will they enhance the project?
- Company Capability (15%) - Can the organization deliver?
"EOI responses that simply restate our requirements back to us don't get shortlisted. We want to see suppliers who can take our vision and make it even better." - Victorian Government Project Director
Common EOI Mistakes to Avoid
- Focusing on generic capabilities: Be specific to their exact challenge
- Restating requirements: Show understanding through innovative response
- Weak case studies: Use detailed, quantified success stories
- Cookie-cutter responses: Every EOI must be completely customized
- Ignoring page limits: Evaluators will stop reading at the limit
Request for Tender (RFT): The Comprehensive Procurement
What is an RFT?
An RFT is the most comprehensive procurement process, requiring detailed responses across all evaluation criteria including technical capability, pricing, experience, and risk management. It's designed to select the supplier offering the best overall value for money.
Typical RFT Characteristics
- Contract values: Usually $200,000 - $100M+ (varies by jurisdiction)
- Response time: 4-8 weeks (sometimes up to 12 weeks for complex projects)
- Document length: 50-200+ pages with supporting documentation
- Evaluation criteria: Multiple weighted criteria with detailed sub-criteria
- Competition: Open market or shortlisted suppliers from EOI stage
When You'll See RFTs
- Major construction and infrastructure projects
- Large-scale IT implementations
- Multi-year service contracts
- Complex consulting engagements
- High-value equipment procurement
RFT Winning Strategy: Balanced Excellence Across All Criteria
The Value for Money Formula: RFTs are won by demonstrating superior value across all evaluation criteria, not just one area of strength.
Typical RFT Evaluation Weightings
- Technical Capability & Methodology (30-40%)
- Price & Value for Money (20-40%)
- Experience & Past Performance (20-30%)
- Risk Management (10-20%)
- Social & Environmental Benefits (5-15%)
RFT Response Template Structure
- Executive Summary (3-5 pages) - Compelling overview of your complete solution
- Technical Response (20-40 pages) - Detailed methodology and approach
- Team & Management (10-20 pages) - Key personnel, organizational structure
- Experience & Case Studies (15-25 pages) - Relevant project examples with outcomes
- Risk Management (8-12 pages) - Identification, mitigation, contingency plans
- Innovation & Added Value (5-10 pages) - How you'll enhance their objectives
- Social Benefits (3-8 pages) - Local content, indigenous participation, sustainability
- Pricing Schedule (5-15 pages) - Comprehensive cost breakdown and options
- Supporting Documentation (10-30 pages) - Certifications, references, company information
Writing Winning Selection Criteria Responses
Use the STAR method for every criteria response:
- Situation: Context and background of the example
- Task: What needed to be achieved
- Action: Specific steps you took
- Result: Quantifiable outcomes and benefits
"The best RFT responses read like a compelling business case for why this supplier is the only logical choice. Every section builds the argument for their selection." - Former Federal Procurement Specialist
Advanced RFT Strategies
The Three-Touch Strategy
Every key message should appear three times in your RFT response:
- Executive Summary: State the key benefit
- Detailed Response: Prove the key benefit with evidence
- Case Study: Demonstrate the key benefit through past performance
The Competitive Advantage Framework
Identify 3-5 unique differentiators and weave them throughout your response:
- Technical differentiator: Unique methodology or technology
- Experience differentiator: Specific relevant experience others lack
- Innovation differentiator: Value-added services or approaches
- Risk differentiator: Superior risk mitigation capability
- Value differentiator: Better outcomes per dollar invested
Other Australian Tender Types You'll Encounter
Request for Information (RFI)
Purpose: Market research and supplier capability assessment before formal procurement.
- No contract awarded from RFI responses
- Used to shape future RFT requirements
- Opportunity to influence specifications
- Typically 5-10 page responses
- Focus on capability and market solutions
Invitation to Offer (ITO)
Purpose: Similar to RFT but typically for specialized or unique requirements.
- Often used in Victorian government procurement
- May have more flexible evaluation criteria
- Can include negotiation phases
- Response approach similar to RFT
Approach to Market (ATM)
Purpose: Flexible procurement method allowing various response formats.
- Can combine elements of EOI and RFT
- May allow alternative proposals
- Often includes multiple submission phases
- Requires careful reading of specific requirements
Strategic Response Timeline Planning
RFQ Timeline (7-14 days)
- Day 1: Document review and compliance check
- Days 2-3: Pricing development and supplier negotiations
- Days 4-5: Response drafting and internal review
- Day 6: Final review and pricing confirmation
- Day 7: Submission (always submit early)
EOI Timeline (2-4 weeks)
- Week 1: Requirements analysis and win theme development
- Week 2: Response drafting and case study development
- Week 3: Internal reviews and refinement
- Week 4: Final polish, compliance check, and early submission
RFT Timeline (4-8 weeks)
- Week 1: Detailed requirements analysis and bid decision
- Weeks 2-3: Win theme development and response structure
- Weeks 4-5: Content creation and pricing development
- Week 6: Internal reviews and red team review
- Week 7: Refinement and compliance checking
- Week 8: Final production and submission
Inside the Evaluation Room: How Responses Are Scored
The Evaluation Process
- Compliance Check: Non-compliant responses eliminated (31% of submissions fail here)
- Individual Scoring: Each evaluator scores responses independently
- Consensus Meeting: Evaluators discuss scores and reach consensus
- Clarification Phase: Top-ranked suppliers may be asked to clarify responses
- Final Scoring: Final evaluation and ranking
- Recommendation: Report to decision maker with recommendations
What Evaluators Look For
- Clear, direct responses that address criteria specifically
- Quantified examples with measurable outcomes
- Risk awareness and mitigation strategies
- Understanding of their challenges and strategic objectives
- Professional presentation that's easy to evaluate
"We evaluate hundreds of responses. The ones that stand out make our job easy by directly addressing our criteria with clear, quantified examples." - NSW Government Evaluation Panel Chair
Using Technology to Optimize Your Response Strategy
Document Analysis Tools
Modern AI tools can help identify which type of procurement you're facing by analyzing:
- Keyword patterns and terminology used
- Evaluation criteria structure and weightings
- Required response formats and page limits
- Timeline and process complexity indicators
- Compliance requirements and mandatory elements
Response Optimization
Technology can also help optimize your responses by:
- Checking compliance against all mandatory requirements
- Analyzing response structure against evaluation criteria
- Suggesting improvement areas based on winning patterns
- Tracking word counts and page limits
- Ensuring consistent messaging across sections
Industry-Specific Variations in Tender Types
Construction & Infrastructure
- Design & Construct RFTs: Combine design and delivery evaluation
- Public-Private Partnership (PPP): Multi-stage EOI then comprehensive RFT
- Maintenance Contracts: Often RFQ-style with performance specifications
- Early Contractor Involvement (ECI): Two-stage procurement with initial EOI
IT & Technology
- Software Licensing: Typically RFQ-style focused on pricing and terms
- System Integration: RFT with heavy technical evaluation weighting
- Cloud Services: Often panel arrangements following EOI shortlisting
- Digital Transformation: Multi-stage with EOI then collaborative RFT
Professional Services
- Legal Services: EOI for panel establishment, RFQ for specific matters
- Management Consulting: Almost always RFT with methodology focus
- Engineering Design: EOI to demonstrate capability, then RFT for delivery
- Project Management: RFT with team capability and experience emphasis
Master Every Tender Type
Whether you're responding to an RFQ, EOI, or RFT, AUO's AI ensures your response perfectly matches the evaluation criteria and procurement type. Never guess your response strategy again.
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