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Request For Quote - RFQ

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Definition of 'Request For Quote - RFQ'

A type of bidding solicitation in which a company or organization asks outside vendors to provide a cost quote for the completion of a particular project or program. A Request For Quote is a variation of a Request For Proposal (RFP), and typically provides more information to the bidder about the project's requirements. It often requires the bidder to break down costs for each phase of the project so as to allow the soliciting company to compare different bids.
Investopedia Says

Investopedia explains 'Request For Quote - RFQ'

The use of a Request For Quote is more likely to occur in situations where products and services are standardized, since this allows the soliciting company to compare the different bids easily. It is also more likely to be used when the soliciting company knows the volume of products that it wishes to purchase. For example, a government agency looking to buy 500 computers with a particular hard drive size and processing speed will send out an RFQ. Because the product is standardized, the agency is better able to compare different quotes to see which one is best suited.

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