Request for Quote (RFQ)

A request for quote (RFQ) is a procurement document sent to selected suppliers or contractors to obtain detailed price estimates for a defined product, service, or project. RFQs are typically used when specifications and required quantities are known and the buyer’s priority is price and standardized requirements.

Key takeaways

• Use RFQs when quantity and specifications are clear and repeatable.
• RFQs target specific vendors — they do not solicit unsolicited bids.
• RFQs focus on price and standardized requirements; they can be used alone or alongside an RFP.

How an RFQ works

1. Preparation: The buyer defines specifications, quantities, delivery schedules, evaluation criteria, and submission requirements.
2. Solicitation: The RFQ is sent to a shortlist of prequalified or preferred vendors.
3. Evaluation: Returned quotes are compared using a uniform format, enabling an apples-to-apples price and terms comparison.
4. Awarding and closing: The buyer issues a purchase order (or contract) to the selected vendor. A vendor’s quote is not a binding contract until the purchase order is accepted and signed.

RFQs often require more detailed pricing information than an RFP because they center on known, standardized needs (e.g., 500 identical laptops with specified specs). RFPs, by contrast, are used for complex or unique projects where solutions and exact requirements may vary.

What to include in an RFQ

• Project overview and scope
• Detailed specifications (materials, dimensions, performance requirements)
• Required quantities and delivery schedule
• Pricing structure and currency
• Payment and warranty terms
• Evaluation criteria (price, delivery, quality, compliance)
• Compliance and certification requirements
• Submission instructions and deadline
• Contact information for questions

Special considerations

Pros:
* Faster procurement cycle compared with broad public solicitations.
* More control over vendors and greater confidentiality.
* Easier comparison when responses follow a uniform RFQ format.

Cons:
* Limiting the bidder pool can reduce competition and potentially miss lower prices or innovative suppliers.
* Quotes are not contracts — final terms are set by the purchase order or contract.
* Requires good upfront specification to avoid ambiguous or noncomparable quotes.

RFQ vs. RFP vs. RFI vs. IFB

• RFQ: Best for standardized goods or services with known quantities; price-focused.
• RFP (Request for Proposal): Used for complex, customized, or project-based work where approach and qualifications matter.
• RFI (Request for Information): Early-stage tool to gather information about suppliers, capabilities, or market solutions.
• IFB (Invitation for Bid) / Invitation to Tender: Similar to RFQ but often used for larger-scale projects with detailed performance specifications and formal bidding processes.

Bottom line

An RFQ is a targeted procurement tool for buying defined, repeatable products or services when price and standardized specifications are paramount. It streamlines comparison and speeds procurement but narrows competition, so buyers should balance efficiency and market reach when choosing this approach.