The Use of Quotations

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Quotations are requested when the size of the requisition or proposed commitment exceeds a minimum dollar amount stipulated usually by policy in the organization of the bidder: for example, $500.00. This rule may not apply in Governmental purchases as they are required by law to perform and award a RFQ to the lowest responsible bidder. In some Industries, proposals may be requested with the intention of selecting a firm to negotiate or settle final prices with.

Depending on your organization, after a RFQ

When to use a RFP versus a RFQ

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This is a good question, and one we hear often. We’ll try our best to provide a simple answer to help you make an informed decision when performing your purchasing duties. This scenario surfaces when you are faced with generating a purchasing document to send to your suppliers.

Documents issued by the Purchasing group may include an RFQ (Request for Quote), RFI (Request for Information), RFP (request for proposal), ITQ (Invitation to Quote), IFB (Invitation for Bid), or other solicitation documents.

An RFQ (Request for Quote) is typically used when the Owner knows the exact type and quantity of goods required. In contrast, an RFP (Request for Proposal) asks bidders to propose a solution to a requirement that may be addressed in multiple ways.

For example, an RFQ would be appropriate if you are purchasing 100 Toshiba laptop computers with defined specifications, such as 2 GB RAM, 100 GB hard drive, DVD burner, and a specific version of Windows. In this case, the requirement is clearly defined, and vendors are quoting against a specific specification.

An RFP, however, may be used if you are uncertain whether to purchase, lease, or rent those same 100 computers, or if hardware and software requirements vary by user. In this situation, vendors are invited to propose a solution that best meets your operational needs.

With this distinction in mind, evaluating an RFQ is generally more straightforward, as responses can be compared primarily on price and compliance with specifications. Evaluating an RFP is more complex, as proposals must be assessed based on not simply cost but methodology, value, risk, and overall suitability.

Sample of Basic RFQ Template

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The expenditure or value of the acquisition item and the risk usually determines the amount of work and effort you put into your RFQ | RFP proposals and for that matter the whole quotation process. Sometimes, you just need a simple or basic RFQ template, a one pager with some general terms and conditions which will allow you to go out for pricing.

For low-value, low-risk purchases, a streamlined approach is often more efficient and entirely appropriate. In those cases, a simple, well-structured RFQ can save time while still maintaining a professional image.

A basic one-page RFQ, like our RFQ19, works well when:

  • The specifications are clear and standardized
  • The market is competitive and well understood
  • The purchase value is relatively low
  • The risk (legal, operational, reputational) is minimal
  • You do not require complex evaluation criteria

A streamlined RFQ should still include:

  • Clear description of goods/services
  • Quantity and delivery requirements
  • Submission deadline
  • Pricing format
  • Basic terms and conditions
  • Contact information

Using a concise RFQ template helps you move quickly without sacrificing structure or consistency. It also ensures suppliers receive the essential information they need to submit comparable quotes.

As the value and complexity increase, however, the process should scale accordingly, adding evaluation criteria, detailed scopes of work, contractual clauses, compliance requirements, and potentially moving from an RFQ to a more formal RFP process.

This scalable approach protects your organization while avoiding unnecessary administrative burden.

If you are looking for a simple or basic RFQ | RFP template you can use to solicit quotations, this template should do the trick. Keep in mind you can change the automobile specification section of the template and customize it by adding your own scope or specification for any purchase requirement.

Download free vehicle RFQ sample template >>> RFQ19 – Basic RFQ Template for Vehicle

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