Methods of Procurement

There are several different methods of procurement for goods and services. Think back to those bidding thresholds and as you review these methods:

• Government Source
• Small Purchase (Up to $2,500)
• Informal Bids or Proposals ($2,500 – $25,000)
• Formal Procurement (Over $25,000)
• Alternate Procurement
• Emergency Purchase

Question:What’s the difference between an Invitation for Bid (IFB) and an Request for Proposal (RFP)? How are bids different from proposals?

Answer: Competitive sealed proposals may be solicited in lieu of competitive sealed bids if competitive sealed bidding is not practicable or not advantageous to the state. RFPs are normally used for professional services, information technology, and specialized equipment.

An IFB is used when…

• Requirements can be described in finite and specific detail
• Contract will be awarded to lowest responsive and responsible bidder
• Competition is readily available
• Enough time for the bidding process
• No need to hold negotiations

An RFP is used when…

• Sealed bidding is not practicable or advantageous to the State. Services, information technology (IT), and equipment (N.D.A.C. 4-12-08-04).
• We’re not sure of the specifications or statement of work. Sometimes specifications or a statement of work cannot be written to permit selection based only on price.
• Testing, experimentation, or evaluation is required.

For more information about doing business with the State of North Dakota, please contact SPO.

State Procurement Office
600 E. Boulevard Avenue Dept. 012
Bismarck, ND 58505-0310

T: 701.328.2683
F: 701.328.1615

Email: infospo@nd.gov
Web: www.nd.gov/spo