RFQs

RFQs, or requests for quotations, are procurement documents used by buyers to obtain price quotes from potential suppliers for defined goods or services. In some contexts RFQ also stands for a request for qualifications, which is used to assess a vendor's capabilities before inviting bids. The term is commonly used in both public and private sector procurement.

A typical RFQ describes the required goods or services, specifications, quantities, delivery requirements, and terms. It may set submission instructions, deadlines, format for quotes, currency, and validity period. Evaluation criteria are usually stated, with price being a major factor, but other factors such as delivery lead times, warranty, and vendor qualifications may influence award.

Process: The buyer issues the RFQ to potential suppliers or posts it publicly; suppliers submit quotes; the buyer evaluates quotes per the criteria and may request clarifications. Awards go to the supplier that meets requirements and offers best value, often the lowest conforming price. After award, a contract is negotiated and executed, often incorporating the quoted terms.

Best practices: ensure clear specifications, standardized response formats, and reasonable deadlines; avoid ambiguity; maintain transparency and compliance with procurement rules; be mindful of confidentiality and conflicts of interest; consider prequalification using RFQ for qualifications when appropriate.