Request For Quote - RFQ

What is a 'Request For Quote - RFQ'

A request for quote (RFQ) is 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.

BREAKING DOWN '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.

RELATED TERMS
  1. Request For Proposal - RFP

    A type of bidding solicitation in which a company or organization ...
  2. Invitation For Bid - IFB

    When a company or organization provides detailed project specifications ...
  3. Bid Bond

    A debt secured by a bidder for a construction job or similar ...
  4. Request For Application - RFA

    A type of solicitation notice in which an organization announces ...
  5. Best And Final Offer

    1. In real estate, a prospective buyer's last and highest offer. ...
  6. Bidder

    The party offering to buy an asset from a seller at a specific ...
Related Articles
  1. Investing

    What's a T Bond?

    Treasury bonds, or T-bonds, are marketable securities issued by the US government, and are available in increments of $100. Bonds have a maturity range of ten to 30 years, with 30 being the most ...
  2. Professionals

    Issuing and Underwriting

    Series 6, Section 8: Issuing and Underwriting. In this section: Issuing and Underwriting, Prospectus Delivery and securities exempt from registration under the Securities Act of 1933.
  3. Budgeting

    #1: Avoid Immediate Disaster

    When you're short on cash, a strict budget is the best tool for finding financial stability. Learn 10 proven ways to balance your budget in tough financial times.
  4. Professionals

    Underwriter Requirements and Procedures

    FINRA/NASAA Series 66 Section 1 - Underwriter Requirements and Procedures. In this section prospectus delivery, exempt securities, regulation D: private placements and penalties under the 1933 ...
  5. Executive Compensation

    Project Manager: Job Description & Average Salary

    Discover more about the specific tasks that project managers are responsible for and the average salary that can be expected in such a position.
  6. Term

    Negotiating the Bid

    A bid is an offer investors make to buy a security.
  7. Professionals

    Project Manager: Career Path & Qualifications

    Learn more about what project managers job, the qualifications necessary for the position and the most common careers for these professionals.
  8. Forex Education

    Forex Tutorial: Reading a Forex Quote and Understanding the Jargon

    One of the biggest sources of confusion for those new to the currency market is the standard for quoting currencies. In this section, we'll go over currency quotations and how they work in ...
  9. Professionals

    What Exactly Do Project Managers Do?

    While supervision is one important part of the job, a lot more goes into project management than just watching everyone work.
  10. Professionals

    Piggybacking A Quote

    If an OTC BB security has been quoted by another dealer for a minimum of 30 days, they may simply enter their own quote by piggybacking the current dealer’s quote so long as: The security ...
RELATED FAQS
  1. What do the bid and ask prices represent on a stock quote?

    Learn what the bid and ask prices mean in a stock quote. Find out what represents supply and demand in the stock market and ... Read Answer >>
  2. How many free credit reports can you get per year?

    Obtain a free annual credit report online, by phone or via mail. These reports are offered through the Free Annual Credit ... Read Answer >>
  3. What information do lenders need when I apply for a credit limit increase?

    Increase your credit limit by making sure your current credit is paid on time and by paying the largest amount you can afford ... Read Answer >>
  4. What are the most common reasons credit limit increase requests are declined?

    Learn about reasons why a request to increase the credit limit on a credit card may be declined, and find out which factors ... Read Answer >>
  5. Why are the bid prices of T-bills higher than the ask prices? Aren't bids supposed ...

    Yes, you are correct that the ask price of a security should typically be higher than the bid price. This is because people ... Read Answer >>
  6. Since I do not have a certificate of completion, where can I get a copy of my exam ...

    If you are not currently employed by a member firm you can get your exam scores by contacting FINRA in writing and requesting ... Read Answer >>
Hot Definitions
  1. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  2. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  3. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  4. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  5. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
  6. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
Trading Center