requestforquote

A request for quote (RFQ) is a procurement document used by buyers to solicit price quotations from suppliers for specific goods or services. It is typically used when requirements are clear and price is the main selection factor, and is commonly employed for standard or commodity items. An RFQ is distinct from a request for proposal (RFP) and a request for information (RFI), which solicit broader proposals or information, respectively.

An RFQ usually includes the scope of work or specifications, quantities, delivery or completion timelines, terms and conditions, instructions for submitting quotes, required forms or templates, any minimum qualifications, and the evaluation criteria. It may also specify the validity period of quotes and confidentiality expectations.

The typical process: identify need, prepare the RFQ with detailed requirements, publish or distribute to potential suppliers, receive quotes by the deadline, evaluate quotes against predefined criteria (primarily price but may include delivery, quality, and service terms), select a supplier, and move to contract negotiation and award.

Evaluation and compliance: include price, unit costs, total cost, delivery lead times, payment terms, warranties, and past performance. Ensure adherence to procurement policies, anti-collusion safeguards, and legal terms. Requesting samples or references can aid verification.

Best practices and risks: be precise in requirements, provide a clear quotation format, allow questions before submission, issue addenda for clarifications, and use a transparent evaluation process. Potential risks include ambiguous specs, rushed decisions, and bid manipulation; mitigation includes clear criteria, adequate notice, and audit trails.

Variants and related terms: In some setups RFQs may be part of e-procurement systems or supplier portals and can be used for service contracts, manufacturing parts, or construction components.