What is an RFQ?
A Request for Quotation (RFQ) is a formal document issued by an organisation — typically a government agency — inviting suppliers to submit a price quote for specific goods or services.
RFQ vs RFP vs RFT
| Document | Purpose | When used |
|---|---|---|
| RFQ | Request for Quotation — price-focused | Requirements are well-defined; cheapest compliant bid wins |
| RFP | Request for Proposal — solution-focused | Complex projects needing innovation and approach |
| RFT | Request for Tender — formal procurement | Large-value contracts with strict compliance requirements |
Australian Government RFQs
In Australia, government agencies publish RFQs through AusTender (the Australian Government's procurement information system). The process is governed by the Commonwealth Procurement Rules (CPRs), which require agencies to approach the market in an open and fair way.
Key things to know about Australian Government RFQs:
- Contracts under $80,000 may use limited tender (direct approach)
- Contracts above the threshold must be advertised on AusTender
- All non-confidential contracts over $10,000 are published on AusTender within 42 days of signing
- Agencies must consider value for money, not just lowest price
- Sustainability, Indigenous procurement, and SME participation are often weighted criteria
How to Respond to an RFQ
- Read the scope carefully — Understand exactly what is being asked for, including deliverables, timelines, and evaluation criteria.
- Check compliance requirements — Insurance, security clearances, financial capacity, and Indigenous participation policies are common.
- Research comparable contracts — Look at past AusTender awards for the same agency or similar scope to understand pricing benchmarks.
- Address all mandatory criteria — Failure to respond to a mandatory requirement usually results in disqualification.
- Price competitively — Understand the price-to-quality weighting. A 70/30 price-quality split means price matters more than approach.
- Submit on time — Late submissions are almost never accepted in government procurement.
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