RFI

In public procurement and corporate sourcing, a Request for Information (RFI) is a preliminary, non-binding solicitation that a buyer issues to map the market, identify capable vendors, refine technical requirements, and estimate budget ranges before launching a formal competitive process. Unlike a Request for Proposal (RFP) or Request for Quotation (RFQ), an RFI does not normally lead directly to a contract award; it is an information-gathering instrument.

Typical RFI content includes a description of the buyer's problem or program, questions about supplier capabilities, references from comparable projects, certifications, indicative pricing structures, delivery timelines, and standards compliance (for example ISO certifications or sector-specific regulations). Responses are usually treated as confidential and are not scored competitively, though they often shape the eventual RFP.

RFIs are common in government IT modernization, defense acquisition, infrastructure planning, and development-bank operations. In the United States, federal agencies issue RFIs under the Federal Acquisition Regulation (FAR), often through SAM.gov; the European Union uses the analogous "prior information notice" and "market consultation" mechanisms described in Directive 2014/24/EU on public procurement. Multilateral lenders such as the World Bank and Asian Development Bank similarly encourage market sounding before large tenders.

For economists and policy researchers, RFIs matter because they:

• Reduce information asymmetry between buyers and a fragmented supplier base, lowering the risk of misspecified tenders.
• Signal upcoming demand, which influences private investment in capacity (relevant in sectors like green hydrogen, semiconductors, or vaccines).
• Shape industrial policy, since the questions asked reveal government priorities and can advantage incumbents if drafted narrowly.

Critics note that poorly managed RFIs can entrench preferred vendors, leak commercially sensitive ideas, or delay procurement. Best-practice guides from the OECD and US GAO recommend publishing RFI responses in aggregated form, setting clear timelines, and separating RFI authors from later evaluation panels to preserve competitive integrity.

The same acronym is used outside procurement (e.g., "Radio Frequency Interference" in engineering), so context matters.