If you're part of a sales or proposal team, you’ve likely encountered an alphabet soup of documents: RFPs, RFIs, RFQs, DDQs, and Prequals. While these terms may sound similar, they're not interchangeable. Understanding their distinct purposes is essential to effectively managing your sales process and winning more deals. In this guide, we'll clarify each type, when to use them, and how automation can streamline your approach.

Understanding Proposal Documents: Definitions & Differences

What is an RFP (Request for Proposal)?

An RFP is a formal document companies send to potential vendors when seeking detailed proposals. RFPs are typically used for complex projects where the solution is just as important as the price. Vendors respond with detailed proposals that outline capabilities, solutions, and pricing.

What is an RFI (Request for Information)?

An RFI is usually an initial step used to gather general information from vendors. Companies use RFIs to shortlist vendors who might later receive a formal RFP. An RFI response typically doesn't include pricing or detailed technical specs; it's about qualifications, experience, and capabilities.

What is an RFQ (Request for Quotation)?

An RFQ is primarily concerned with cost. It’s used when companies already have clearly defined needs and are simply comparing prices for identical services or products. Vendors respond with a detailed price quote and minimal information on service details.

What is a DDQ (Due Diligence Questionnaire)?

A DDQ is designed for risk assessment, compliance, and security checks. Companies often use DDQs in highly regulated industries to thoroughly vet vendors’ operational, financial, and security practices.

What is Prequalification?

Prequalification involves evaluating potential vendors’ capabilities and credentials before including them in a formal RFP process. It helps companies quickly filter out unqualified vendors, saving significant time later in the proposal cycle.

When You Might Encounter Each Type

• RFPs are ideal for complex, solution-driven engagements, such as software implementation or strategic partnerships.

• RFIs help narrow down a large vendor pool before detailed proposals are requested.

• RFQs best suit straightforward purchases of commodities or well-defined services where cost is the main decision factor.

• DDQs are essential for organizations in compliance-sensitive sectors, like finance or healthcare, ensuring vendors meet stringent regulatory standards.

• Prequalification reduces complexity in the sales process by ensuring only qualified vendors enter the proposal stage.

How AI Proposal Management Tools Simplify the Process

To effectively handle this variety of documents, proposal teams increasingly rely on AI-powered tools like Settle, designed specifically for proposal management. Settle eliminates the tedious manual processes involved in managing RFPs, RFIs, RFQs, DDQs, and Prequalification requests by centralizing information, automating responses, and reducing the time required to produce professional, accurate proposals.

For example, one enterprise sales team using Settle reduced their proposal response times by 60%, allowing them to engage more prospects effectively and close deals faster.

Conclusion

Clarity around RFPs, RFIs, RFQs, DDQs, and Prequalification isn’t just about definitions—it's about using the right tool for the job. Properly leveraging these documents at the appropriate times streamlines your sales cycle, improves vendor relationships, and increases your win rate.

Ready to stop wasting time with manual proposal processes?

Simplify your proposal responses—Try Settle’s AI Proposal Manager today.