A PM is assigned to a project involving the development of a product that is outside the company's area of expertise. The management team has decided to bring in outside resources to develop the…

The correct answer is D. RFI. An RFI (Request for Information) is issued first in the procurement process when the buyer needs to learn about what vendors and solutions are available in an unfamiliar market. Since the company lacks expertise in this domain, they need market intelligence before they can…

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Question

A PM is assigned to a project involving the development of a product that is outside the company's area of expertise. The management team has decided to bring in outside resources to develop the product. Which of the following should the PM issue FIRST?

Options

ARFQ
BLOI
CNDA
DRFI

How the community answered

(22 responses)

A
9% (2)
B
5% (1)
C
14% (3)
D
73% (16)

Explanation

An RFI (Request for Information) is issued first in the procurement process when the buyer needs to learn about what vendors and solutions are available in an unfamiliar market. Since the company lacks expertise in this domain, they need market intelligence before they can write detailed requirements or solicit bids. An RFQ (A, Request for Quote) solicits pricing and comes later. An LOI (B, Letter of Intent) signals intent to award a contract. An NDA (C, Non-Disclosure Agreement) protects sensitive information but does not drive vendor discovery. RFI → RFP/RFQ → LOI is the typical procurement sequence.

Topics

#RFI#procurement process#vendor selection#outsourcing

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