RFQ (Request for Quotation)

When you first explore government contracting, you'll quickly encounter terms like RFP, RFI, and RFQ. Among them, the RFQ – short for Request for Quotation – plays a specific role in the solicitation process. If you've ever searched "what is an RFQ" or "RFQ meaning," you likely found that RFQs are used when agencies know exactly what they want and need price quotes for comparable goods or services. Understanding how RFQs work is essential for contractors who want to compete effectively and price their offerings competitively.

What Does RFQ Mean?

RFQ stands for Request for Quotation. It is a document used by buyers to ask suppliers for pricing information on a specific product or service. Unlike a proposal request, an RFQ focuses primarily on price and delivery terms because the buyer already knows what it needs and wants to compare suppliers. For federal procurement, an RFQ invites contractors to submit quotations, but those quotations are not offers and cannot by themselves be accepted to form a binding contract. Instead, the government’s purchase order is the offer, and a contract is established when the supplier accepts the order.

When Are RFQs Used?

An RFQ is best suited for procurements where the requirements are straightforward and quantifiable. Agencies issue an RFQ when they know exactly what they want and simply need to compare prices and terms across vendors.

When comparing commodity goods to complex services. The cost of goods is typically clear and makes head‑to‑head price comparisons easier.

RFQ vs RFP vs RFI: What’s the Difference?

RFQs, RFPs, and RFIs serve different purposes in the procurement cycle. An RFI, or Request for Information, is a market research tool used to gather information about vendor capabilities. An RFQ is issued when requirements are precise and the buyer wants pricing to compare vendors. By contrast, a Request for Proposal (RFP) describes the scope of the project in detail and invites vendors to propose solutions and pricing. An RFP is used when the scope is complex or the buyer needs to evaluate competing approaches or qualifications. Unlike a quotation, a proposal is an offer that the government can accept to form a binding contract, whereas an RFQ response cannot be accepted on its own.

RFQs and the Simplified Acquisition Process

RFQs are most often used under the Simplified Acquisition Procedures defined in FAR Part 13. These procedures allow agencies to acquire supplies and services up to certain dollar thresholds with streamlined methods. According to federal acquisition guidance, RFQs are typically used for government‑unique items that do not exceed the simplified acquisition threshold of $100,000 and for commercial items up to $5.5 million. An RFQ helps agencies determine the availability of commercial products and services at competitive prices, making it a preferred tool for small to medium‑sized procurements.

Benefits of Using RFQs

• Structured bid comparison – RFQs provide a consistent format for evaluating vendor pricing and offerings on equal terms.

• Promotes competition – By requesting quotes from multiple suppliers, agencies can stimulate competition and achieve lower costs.

• Demonstrates impartiality – Standardized quote requirements ensure fairness, impartiality, and transparency in vendor selection.

• Planning and budgeting – RFQs allow agencies to collect pricing, delivery, and capability information to plan future procurements effectively.

How GovDash Helps You Manage RFQs

A well-written RFQ helps buyers get accurate pricing and vendors showcase their value. With GovDash, you can go even further by writing multiple proposals tied to a single opportunity, including RFQs. This makes it easier to manage responses, stay compliant, and improve your chances of winning business.