RFQ (Request for Quotation)

A Request for Quotation is typically used for straightforward, commodity-type purchases where the contracting authority knows exactly what it wants and is primarily seeking the lowest compliant price. Unlike an RFP, suppliers are not expected to propose alternative approaches — they quote against a fixed specification.

RFQs are common for below-threshold purchases, repeat orders, and catalogue-type procurement. Many e-procurement platforms support automated RFQ workflows where systems trigger quote requests from pre-approved vendor lists when spend exceeds a defined floor. World Bank and UN agencies use RFQ as one of their standard Shopping procedures for lower-value contracts.

For vendors, RFQs are relatively low-effort to respond to but highly price-competitive. Margins are typically thin, and incumbents with existing contracts often hold an advantage due to known delivery track record. The key vendor strategy is ensuring your pricing remains competitive while accounting for hidden costs such as delivery, installation, and warranty obligations that may be bundled into the RFQ specification. Responding quickly matters — RFQ timelines are often short (three to ten working days).