Certified Texas Contract Manager Practice Exam

Under what circumstance is an RFO typically utilized?

1. For fixed-price contracts only

2. When detailed project specifications are needed

3. For automated information systems

4. When seeking the lowest bid

The correct answer is: For automated information systems

An RFO, or Request for Offer, is typically utilized in scenarios where a government entity or organization needs to procure a specific solution, particularly in the context of automated information systems. In this situation, the RFO process allows for the solicitation of detailed proposals that will provide the necessary technical specifications, capabilities, and pricing for complex systems or services involving automation, software, or technology solutions. The nature of automated information systems often requires a tailored approach where various suppliers can present their unique solutions. This ensures that the organization receives the most pertinent offers that meet their specific needs and technical requirements. While it is true that detailed project specifications might seem applicable; the RFO specifically aligns more closely with technology or information systems procurement where the complexity and varied solutions necessitate a more comprehensive solicitation process, rather than just focusing on fixed price or bidding scenarios.