What is an RFQ?

What is in an RFQ

A typical RFQ states what is being bought, in what quantity and to what specification, where and when it must be delivered, the terms of the contract that will follow, the closing date and how to respond. It often includes a pricing schedule to fill in, line by line, so the buyer can compare quotes side by side. Australian Government procurement rules list a request for quote as one form of approach to market alongside requests for tender, proposals, expressions of interest and information, and the Department of Defence publishes a standard request for quotation proforma that shows the usual parts. In the United States, federal buyers use quotations for simplified acquisitions under Part 13 of the Federal Acquisition Regulation.

How to answer one

Read the whole request before pricing anything, and list every mandatory item and format rule. Price exactly the scope given, using the buyer's schedule and units, and put assumptions or alternatives in a separate, clearly marked section rather than inside the main price. State whether prices include tax, how long the quote is valid, and lead times. Answer every compliance question, even with a simple yes, because a missing answer can make the whole quote non conforming. Submit before the deadline through the channel named, and keep proof of submission.

When an RFQ is the right tool

For buyers, an RFQ suits purchases where the specification is settled and the main variable is cost: supplies, standard services, a fixed scope of trade work. When the buyer needs suppliers to propose a solution, an RFP fits better, and when public money and formal rules are involved, a tender process may be required. For suppliers, a stream of RFQs from the same buyer is a sign that price matters most to them, which should shape how much time you invest in each response.

Common mistakes

The most expensive mistake is quoting a different scope from the one requested because you think it is better; the quote then cannot be compared and is often set aside. Others include ignoring the pricing schedule, leaving tax treatment unclear, missing the closing time by minutes, and adding conditions that contradict the buyer's terms. Buyers make mistakes too, mostly by issuing an RFQ with a vague scope, which produces prices that cannot be compared.

Where it shows up in the product

The proposals module writes proposals and quotes as two kinds of document, chosen with a toggle in the generator, each with exactly one pricing table whose columns are Item, Qty, Unit price, Tax, Discount and Amount. Price hints in the brief are authoritative, so every number you give becomes an item at exactly that price, which suits copying a buyer's pricing schedule line by line. A quote carries a valid until date, and an expired quote cannot be accepted.

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