RFQ (Request for Quotation)
An RFQ (request for quotation) asks suppliers to price goods or services the buyer has already specified. Because the requirement is fixed, award usually turns on price, delivery and whether the quote meets every stated term, rather than on competing approaches.
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01How RFQs work in federal buying
RFQs are the standard instrument of simplified acquisition under FAR Part 13, and agencies also use them for orders under GSA schedule contracts. FAR 13.004 makes a key legal point: a quotation is not an offer. When the government places an order in response to a quote, the order is the offer, and a contract forms only when the supplier accepts it or begins performing. Simplified procedures reduce paperwork, but the RFQ still states what the buyer will consider, and a quote that ignores a stated requirement can be rejected.
02Elsewhere
State, local and commercial buyers use RFQs, and sometimes invitations for bid, for commodity purchases, defined service rates and repeat buys. Some RFQs are price only. Others are small RFPs in practice, asking for a short technical description and past performance alongside the price. Read the basis for award before deciding how much to write.
03How to respond
04RFQ or RFP
An RFQ response shows that you meet the specification at a good price; an RFP response shows why your approach is better. For more on when buyers choose each, see the RFQ explainer.
RFQ: common questions
Is a quote binding once submitted?
In federal simplified acquisitions, a quotation is not an offer (FAR 13.004): the government's order is the offer, and a contract forms when you accept it or begin performing. Commercial RFQs vary, and many make a quote firm for a stated period, so read the terms.
Does an RFQ always go to the lowest price?
Often, but not always. Some RFQs also weigh technical capability, delivery or past performance; the RFQ states the basis for award.
How is an RFQ different from an invitation for bid?
Both price a defined requirement. An invitation for bid is the formal sealed-bidding process of FAR Part 14, where award goes to the responsible bidder whose bid conforms to the invitation and is most advantageous, considering only price and price-related factors. RFQs are less formal and common for smaller purchases.
Sources
- FAR 13.004 — Legal effect of quotationsAcquisition.gov
- FAR Part 14 — Sealed biddingAcquisition.gov
- FAR Part 13 — Simplified acquisition proceduresAcquisition.gov
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