Request for Quotation (RFQ)

What is a Request for Quotation (RFQ)?

A Request for Quotation (RFQ) is a streamlined procurement method used by Australian government agencies for lower-value or straightforward purchases. It is simpler and faster than a full Request for Tender because the requirements are well-defined and the purchase is typically less complex.

When is an RFQ Used?

Australian government procurement rules set monetary thresholds that determine which process applies. An RFQ is commonly used when:

• The estimated value falls below the agency’s threshold for a full open tender
• The goods or services are standard or commodity items
• The agency is seeking quotes from suppliers on an existing Panel Arrangement or Standing Offer
• A quick turnaround is needed and the market is well-understood

For Commonwealth agencies, the Commonwealth Procurement Rules (CPRs) require open approaches to market above certain thresholds, but below those thresholds an RFQ to a smaller number of suppliers is permitted.

How Does the RFQ Process Work?

1. The agency identifies the requirement and selects potential suppliers
2. An RFQ document is issued specifying quantities, delivery requirements, and any evaluation factors
3. Suppliers respond with pricing and availability
4. The agency selects the best quote based on Value for Money
5. A purchase order or simple contract is issued

Tips for Tenderers

• Be competitive on price — for commodity purchases, price is often the dominant factor.
• Respond quickly — RFQ timelines are typically shorter than for RFTs.
• Ensure you meet all specifications — non-compliant quotes are easily set aside when alternatives exist.
• Join relevant panels — many RFQs are issued exclusively to panel members.