Decoding Common Procurement Acronyms

We have our own language in procurement. From my own experience conducting training, when I get in my “procurement geek-speak” zone, information I share with the audience comes complete with multiple acronyms strung together in same sentence. If I’m not mindful about being in this zone, and I don’t elaborate further about the acronyms, those in attendance will likely need me to take a pause in the training to answer clarifying questions.

When we use this procurement language every day, it’s easy to take two things for granted: 1) people we are talking with understand our acronyms, and 2) the acronyms we use mean the same thing to everyone.

For example, someone might ask, “Should we use an RFQ for A&E?” The answer? It depends—what do they mean by RFQ? Those letters can stand for either a request for qualifications or a request for quotes. And if A&E isn’t a familiar acronym, we have another term to define before answering the question.

A little clarification can go a long way. Before assuming we are speaking the same language, it helps to spell out our acronyms and explain what we mean. This blog will decode some common procurement acronyms.

Acronyms for Procurement Project Types

First, let’s look at common acronyms related to different procurement project types for local governments.

Architectural and engineering services (A&E)

Professional architectural and engineering (A&E) services are those provided by any person, other than an employee of the agency, under contract that fall under the general statutory definitions of:

• Architecture in chapter 18.08 RCW;
• Engineering and land surveying in chapter 18.43 RCW, and/or
• Landscape architecture in chapter 18.96 RCW.

All local governments must follow the uniform requirements of chapter 39.80 RCW when procuring professional A&E services. Contracts are awarded primarily based on a process known as qualifications-based selection (QBS). QBS recognizes that the lowest price should not be a factor in selecting highly skilled design services.

Design-bid-build (DBB)

In a design-bid-build (DBB) contract, an agency contracts with an engineer/architect to designs the public works project, and the agency uses a competitive award process to locate a contractor, who constructs the project using plans and specifications prepared by the engineer/architect.

Design-build (DB)

Design-build (DB) is authorized by RCW 39.10.300-.330. In this approach, an agency contracts with a single firm to both design and build a public works project instead of separating the project into two independently awarded contracts.

General contractor/construction manager (GCCM)

As authorized by RCW 39.10.340-.410, a public agency can select a contractor early in the design process of the public works project, which allows them to play a greater role in project development (This can be helpful with projects that have complex scheduling, phasing, or coordination).

This person then serves as the general contractor/construction manager (GCCM) during the construction phase.

Job order contracting (JOC)

As authorized by RCW 39.10.420-.460, under job order contracting (JOC) one contract that can be used for multiple, small, time-sensitive projects requiring little or no design. When a project exists, agencies price the work based on an established price book.

Small Works Roster (SWR)

Authorized local governments and state agencies as defined in RCW 39.04.010 may use a small works roster (SWR) to solicit bids for small public works contracts instead of soliciting these through the formal public advertisement process, while still providing for some level of competition.

RCW 39.04.151-.152 cover the general requirements and process for using a SWR in public works projects.

Unit price contract (UPC)

Unit price contracts (UPC) allow small public works projects to be broken down over a period of time and priced by individual units rather than a fixed total cost. Any local government authorized to use UPC has an enabling statute.

Acronyms for Common Procurement Methods

Bidding

There are two commonly interchangeable terms describing the competitive process of awarding a contract to a responsible bidder with the lowest responsive bid. These two acronyms are:

• ITB, meaning invitation for bid; and
• IFB, meaning invitation to bid

Generally, ITB and IFB competitive processes could be used for all procurement project types, with the exceptions of professional A&E services and alternative public works.

Similar to ITB and IFB, request for bids (RFB) is another way to describe the competitive process of awarding a contract to a responsible bidder, and it also cannot be used with projects involving A&E, DB, GCCM, and JOC. However, it is common as a competitive process for purchasing materials, equipment, and supplies.

Requests for quotes (RFQ)

Agencies may issue a request for quotes (RFQ) directly with individual vendors for projects where competitive bidding is not required because the total project cost is below an agency’s bid limits and minimal competition occurs.

Generally, minimal competition and an RFQ could be used for all project types, with the exceptions of professional A&E services and alternative public works.

Request for qualifications (RFQ)

In issuing a request for qualifications (also known as RFQ), an agency asks only for a firm’s general capabilities, list of principals, previous projects, and number of employees, licenses, etc. for either a services roster or, perhaps, an individual project.

Contracts are awarded primarily based on qualifications rather than cost. This approach is mainly used for professional A&E services, but it can also be used for alternative public works and, sometimes, personal services contracts.

Request for proposals (RFP)

A request for proposals (RFP) can provide the ability to negotiate all terms, including price (and may include best and final offers prior to contract award) in a competitive process where price is usually not a primary evaluation factor for award.

RFP is used for alternative public works and also commonly used as the competitive process for personal services and purchased services. Additionally, RCW 39.04.270 allows an agency to acquire electronic data processing or telecommunication equipment, software, or services through RFP rather than through competitive bidding

Conclusion

Procurement acronyms can save time—but only when everyone can decode what they mean. As the RFQ examples above highlight, recognizing the letters may not be enough, we also need to understand their role in the competitive process.

The next time you find yourself in procurement-geek-speak mode with someone who might not share your knowledge, take a moment to spell out the acronym to explain the context. This might mean saying: “RFQ means request for qualifications” in a conversation or by noting this information when developing a solicitation document.

Whether we are talking with peers, someone new to procurement, or with vendors and contractors, the goal is not just speaking the language, it is understanding one another.

As you decode these acronyms, check out our sample document library to see project examples from across the state.