What Is a Request for Quote (RFQ)?

A request for quotation (RFQ), also known as an invitation for bid (IFB), is a procedure in which a firm invites qualified suppliers and contractors to submit price estimates and bids for the opportunity to complete certain tasks or projects. Businesses that want a regular supply of a certain number of standard items should use the RFQ procedure. Companies can send RFQs before or after an RFP. The initial step in filing a request for a proposal is generally an RFQ (RFP). These two papers are similar in that they offer details on the project or services that are needed, while RFQs often request a more detailed price quote. RFQs are often used for generic items with known numbers, whereas RFPs are used for unique, specialized projects with unknown numbers and requirements.