RFP, RFQ, RFI: What’s the Difference- and Where AI Fits In

What they mean, how to respond, and how smart automation is changing the game.

If you’re working in federal or SLED contracting, you’ve likely seen all three acronyms: RFP, RFQ, and RFI. These “RFx” documents are the main ways government agencies communicate what they need — and how vendors like you can respond. But despite the shared letters, they’re not interchangeable.

In this post, we’ll clarify what each one really means (in plain English), break down the strategic differences, and show how AI tools like McCarren are transforming how teams approach all three. Whether you’re a newcomer or a seasoned proposal manager, understanding the nuances (and knowing where automation can help) gives you a critical edge.

What’s an RFI?

A Request for Information (RFI) is not a solicitation — it’s a market research tool. Agencies use it to ask: Can anyone do this? How would you solve it? There’s no contract award tied to an RFI, but responding is still unbelievably valuable.

For contractors, an RFI is a chance to:

• Shape the requirement before it’s finalized
• Signal interest early in the process
• Position your capabilities for future consideration

In both federal and SLED spaces, responding to RFIs is often the way to get ahead — especially when paired with AI tools that can spot them early, summarize what’s being asked, and showcase your services in a nuanced way that resonates with buyers. Platforms like McCarren surface and filter RFIs in real time, so you don’t miss the window to weigh in. McCarren also helps draft an accurate and nuanced response for you - so even though there’s no immediate contract, you don’t have to spend your valuable time.

What’s an RFQ?

A Request for Quotation (RFQ) is more transactional. It usually means: We know what we need. Just tell us your price. These are common for products, commodities, or simple services — and often come with short turnaround times.

Key traits of an RFQ:

• Focus is on pricing and delivery, not narrative
• Response is typically a filled-out quote form, not a proposal
• Evaluation is often lowest-price-wins, as long as you’re compliant

SLED agencies and local governments use RFQs often — and AI tools are helping teams stay ahead. Instead of manually monitoring multiple procurement portals, platforms like McCarren scan and flag RFQs across states and cities, then route them directly into your workflow for rapid response. McCarren also keeps your RFQ compliant, ensuring your proposal will be actually considered.

What’s an RFP?

The Request for Proposal (RFP) is where the heavy lifting happens. These are used for complex or high-value contracts — think IT systems, facilities management, staffing support, consulting, and beyond.

An RFP typically requires:

• A multi-section narrative covering technical approach, staffing, past performance, and pricing
• A strict compliance matrix (often structured under Sections L & M)
• A response that balances technical excellence with pricing competitiveness

This is where most proposal teams spend the bulk of their time — and where AI has had the most visible impact. Platforms like McCarren now automate Pink and Red Team drafts, extract key requirements, and even flag gaps before red team. McCarren also helps prepare the response for Gold Team review by polishing text and formatting.

By combining content reuse with state-of-the-art contextual drafting leveraging advanced RAG and AI, McCarren is helping teams cut proposal development timelines by up to 90%, while reducing missed requirements.

What About SLED?

State, local, and education (SLED) agencies use all three formats — but often with looser definitions. What one city calls an “RFQ” might actually be asking for a proposal; what one state considers an RFI might just be a soft pre-solicitation.

The takeaway: always read the document closely, and when in doubt, use McCarren to help you Triage. That help from McCarren can be the difference between winning a high value contract and missing out.

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Where AI Fits In

Regardless of the RFx type, the core challenge is the same: speed + clarity. You need to know what’s out there, know if it’s a fit, and respond quickly — without burning out your team.

Here’s where AI helps:

• Spot opportunities early (even hidden ones in PDFs or attachments)
• Summarize RFPs and RFQs instantly, so you can go/no-go with confidence
• Draft and format responses, from compliance matrices to technical volumes
• Enhance collaboration between SMEs and AI Agents, track deadlines, and ensure nothing falls through the cracks

In McCarren’s case, AI agents watch federal, SLED, and grants portals around the clock. The moment a relevant RFx drops, it’s tagged, classified, and surfaced — with a draft outline and key compliance items already mapped for you.

For busy proposal teams, it’s like starting every response with the grunt work already done. The team can then focus on high-level strategy development.

Final Thoughts

RFPs, RFQs, and RFIs aren’t just paperwork — they’re opportunities. Understanding what each one asks for is step one. Knowing how to automate your response process is step two. Whether it’s capturing early intel from an RFI, getting a quote in fast on an RFQ, or managing a full-blown RFP from kickoff to red team, smart tools make it easier to move faster, stay compliant, and win more.

👉 Want to see how AI can help you manage all three?

Explore McCarren — built for modern government contracting.