Request for Quotation

A Request for Quotation (RFQ) is a procurement instrument used by governments, international organizations, and private firms to solicit binding price offers from pre-qualified or open-market vendors. Unlike a Request for Proposal (RFP), which invites suppliers to propose how to solve a problem, an RFQ assumes the buyer already knows exactly what is needed — quantity, technical specifications, delivery terms, and timeline — and is primarily comparing price and commercial terms.

RFQs are typically used for off-the-shelf goods or routine services below a defined value threshold. In the UN system, for example, the UN Procurement Manual distinguishes RFQs (used for lower-value, standardized requirements) from Invitations to Bid (ITB) and Requests for Proposal (RFP) for higher-value or more complex procurements. The World Bank, UNDP, UNICEF, and most national procurement codes follow a similar tiered structure.

A standard RFQ package usually contains:

• A statement of requirements or bill of quantities
• Delivery and Incoterms (e.g., DAP, FCA, CIF)
• Payment terms and required currency
• Validity period of the quotation (commonly 30–90 days)
• Evaluation method, typically lowest-priced technically compliant offer
• Required certifications, warranties, and compliance attestations

Quotations are evaluated against the published criteria, and award is generally made to the lowest compliant bidder. Because RFQs are price-driven, they offer less room for negotiation than RFPs, though clarifications and best-and-final offers (BAFOs) are sometimes permitted.

For junior researchers and MUN delegates studying institutional procurement, the RFQ is significant because it is the most common instrument by volume of transactions at bodies such as the UN Secretariat, even though large headline contracts more often use ITBs or RFPs. Misuse of RFQs — for instance, splitting contracts to stay below RFQ thresholds — is a recurring finding in oversight reports by bodies like the UN Office of Internal Oversight Services (OIOS).