What is a Request for Quotations?

One of the common ways of procurement methods is a RFQ (Request for Quotation.)

The government or any other business use RFQ is a standard business way to ask vendors and other outside business to provide them with information about price(quote) of a service, work, or product. RFQ usually requires suppliers to provide not only a price offer for a product or service but also information on materials and equipment used, labor costs, insurance, etc. RFQ includes product or service specifications for to make sure that all suppliers offer a price for the same product or service.  An RFQ allows different contractors to provide a quotation(price), among which the best will be awarded.  A response to RFQ by a prospective contractor is not considered an offer, and therefore, cannot be accepted by the government to form a binding contract. They might just be researching in order get information for future planning. The contract will be established only when the vendor or service provider accepts an offer from the soliciting company. The RFQ is usually the step right before submitting an RFP, which is a more complex submission. In this option, suppliers are selected for next procurement step.  If several relevant bidders offered the same price, the contract will be concluded with the one who did it before the others.

Those wishing to participate in this kind of procedure, you need to carefully study the list of documents that need to be filled (or attached) and the terms of the contract (if it is contained in the documentation). Especially pay attention to the terms and conditions of payment, the time of delivery (performance), the requirements for suppliers. The structure of the application may also include reviews, information on the previous similar (successful) experience in the delivery of products (provision of services) and other documents.

The suppliers must return the bidding by a set date and time to be considered for an award.

RFQ is a common business procedure used for procurements from $ 2,500 to $ 150,000.

A Request for Quotations is a great way for both soliciting companies and suppliers to communicate in terms of services and products.

As an example, The City of Miramar, FL solicits quotes from qualified vendors to provide service at the Amphitheater at Regional Park.

The published RFQ designates the scope of work for potential contractors.

The deadline for applications is 22 calendar days.

Under this procedure, prospective contractor can send questions to the customer, but not later than 14 calendar days before the deadline for submission of applications.

The contractor must provide the price proposal for the form specified in the request (including labor costs, materials cost, supervision, equipment, transportation costs, insurance, tools and unforeseen circumstances for the performance of work). If the contractor claims preferential treatment (as a small business company), then the application specifies the amount of such preferences and a copy of the relevant document is attached.

The specified price becomes fixed for 90 days from the announcement of the RFQ.

The contractor is obliged to provide insurance certificates (listed in the request) before start of work on the contract – no later than 10 days after the winner’s recognition.

The contractor must begin work on a written notification from the project manager, and the work will be carried out regularly and without interruption. The contractor must complete the work, including all restoration, no later than 30 calendar days from the commencement of construction.

Our company Expert Center will provide you with all the services needed to win government contracts, from registering your company on government websites to submitting your bid.

For any questions you may have, you can contact us by phone +1(305)677-2167 or write to us by e-mail contact@expertcenter.us.

By: Anna Nemova (Expert Center, LLC)