The U.S. Department of Education reports that postsecondary institutions collectively spend more than $700 billion each year, but shrinking budgets, uncertain enrollment, and government changes to funding are affecting how academic institutions need to manage finances. For some, the situation is mission-critical. More than 40 colleges and universities have closed their doors since 2000, citing unsustainable financial models and an inability to compete effectively.
With so much on the line, procurement decisions are high stakes. Misaligned contracts or inefficient purchasing can create ripples that resonate far and wide across budgets. As such, academic institutions are reevaluating how procurement works and how they manage spend. For many, it’s back to basics.
An RFP is a request for proposal, a formal document used when you need a solution tailored to specific needs. An RFP outlines your objectives and requirements but allows suppliers to propose how they will meet those needs.
RFPs are most appropriate when:
Here’s an example. A university wants to overhaul its student information system. It needs integration with existing platforms, mobile access, training, and long-term support. The project is complex and requires proposals that go beyond a simple product or service quote.
In such a case, the RFP process enables the institution to communicate detailed objectives and any constraints, soliciting ideas that might improve outcomes, and evaluate providers on total solutions.
RFQ stands for Request for Quotation and is used to solicit price quotes for known products or services. It is a more transactional approach and focuses primarily on cost and delivery terms.
RFQs are appropriate when:
An RFQ would be more appropriate when you need to buy 1,000 standardized lab beakers for general chemistry courses. The product is well-defined, and the team simply needs to compare pricing, shipping timelines, and warranty terms from qualified suppliers.
Unlike RFPs, which evaluate a range of qualitative attributes, RFQs are usually awarded to the lowest-priced responsive and responsible bidder.
Let’s compare RFPs vs. RFQs and the key differences.
RFPs cover complex projects that require specialized solutions, innovation, or customization. RFQs are limited to simple, commodity-based purchasing.
RFPs involve scoring rubrics, reviews, and criteria such as technical merit, total cost of ownership, and alignment with strategic goals. RFQs are generally evaluated on cost and compliance with specifications.
RFPs are more time- and resource-intensive:
By contrast, RFQs can be issued and awarded in a matter of days, assuming specs are clear, and suppliers are pre-qualified.
While institutions often must follow specific procurement requirements based on purchase thresholds, institutional policies, or state regulations, understanding when each approach is most effective can help optimize outcomes within those parameters. Here’s a simplified framework for when you do have flexibility in your procurement approach:
Procurement Need | Use RFP | Use RFQ |
Complex solutions requiring customization | ✅ | |
Clear, defined specifications | ✅ | |
Service quality and qualifications matter | ✅ | |
Price is the primary factor | ✅ | |
Opportunity to compare multiple approaches | ✅ | |
Speed and simplicity are top priorities | ✅ |
RFPs and RFQs are integral parts of the procurement lifecycle in higher education. Choosing the right solicitation method helps you comply with policies and regulations, providing the transparency and accountability you need, especially when dealing with public funds or grants.
The majority of academic institutions today leverage cooperative agreements to meet budget constraints and streamline procurement. Rather than issue individual RFQs or RFPs, colleges and universities utilize competitively solicited contracts from E&I Cooperative Services. E&I aggregates demand across over 6,000 member institutions to achieve significant volume discounts.
Higher education procurement is increasingly complex and increasingly strategic. With shrinking budgets and rising expectations, procurement leaders must make every dollar count. As colleges and universities navigate uncertainty, leveraging smarter procurement practices can mean the difference between thriving and falling behind.
E&I Cooperative Services offers hundreds of competitively solicited cooperative contracts. As the only member-owned, nonprofit sourcing cooperative focusing solely on the education sector, E&I crafts contracts tailored to higher ed to help you reduce costs and remain compliant.
Why spend months on RFPs when you could have vetted technology solutions today? See E&I’s competitively solicited technology contracts already negotiated for higher education.