Is negotiation allowed after submitting a quotation?

Generally, negotiation is less common with RFQs compared to RFPs. However, the government may clarify requirements or request a revised quotation if the initial quotes are not satisfactory.

What factors beyond price should contractors consider when responding to an RFQ?

While price is a major factor, contractors should also consider their capacity to deliver, compliance with all requirements, and the potential for future business with the government agency.

RFQ (Request For Quotation) | GovCon Glossary

RFQ (Request For Quotation)

What is RFQ (Request For Quotation)?

A Request for Quotation (RFQ) is a formal invitation issued by a government agency to potential suppliers, soliciting price quotations for specific goods or services. It is a streamlined procurement method typically used for well-defined requirements and commercial items where price is a primary factor in the selection process. Contractors need to understand RFQs to effectively compete for government contracts.

Definition

An RFQ is a solicitation method under the Federal Acquisition Regulation (FAR) Part 13 (Simplified Acquisition Procedures) or FAR Part 8 (Required Sources of Supply) used when the government has a clearly defined need for a readily available commercial item or service. Unlike a Request for Proposal (RFP), which seeks comprehensive proposals and allows for negotiation on technical aspects, an RFQ focuses on obtaining the best possible price for a standardized requirement. It's crucial that government contractors understand the specific requirements outlined in the RFQ and submit accurate and competitive quotations to increase their chances of winning the contract. If all other factors are equal, the government will usually award the contract to the vendor with the lowest price.

Key Points

Focus on Price: RFQs are primarily price-driven, but factors like delivery time and past performance may also be considered.
Simplified Process: The evaluation process is typically simpler than for RFPs, with less emphasis on technical evaluation.
Well-Defined Requirements: RFQs are suitable when the government knows exactly what it needs and can clearly specify the requirements.
Commercial Items: RFQs are most often used for procuring standard commercial items or readily available services.

Practical Examples

Office Supplies: An agency needs to replenish its stock of standard office supplies like paper, pens, and toner cartridges. They issue an RFQ to several suppliers to obtain the best price for these items.
Routine Maintenance: A government facility needs routine maintenance services like landscaping or janitorial services. An RFQ is used to solicit quotes from qualified contractors for these services based on clearly defined specifications.
Purchase of COTS Software: An agency needs to purchase a specific commercial off-the-shelf (COTS) software product. The agency issues an RFQ to authorized resellers to obtain the best price and delivery terms.

Frequently Asked Questions

An RFQ is generally used when the government knows exactly what it needs and is primarily concerned with price. An RFP (Request for Proposal) is used when the government requires a more complex solution and wants vendors to propose innovative approaches.