What is the primary purpose of a Request for Quotation (RFQ)?

The primary purpose of a Request for Quotation (RFQ) is to solicit price proposals for specific goods or services. An RFQ is an essential tool used in procurement processes where an organization seeks to obtain pricing information and other relevant details from potential suppliers. By issuing an RFQ, the buyer explicitly outlines the specifications and quantities of the products or services needed, inviting suppliers to provide their best pricing, terms, and availability. This process helps the buyer assess the market and make informed decisions based on competitive offers.

In contrast, other options relate to different aspects of the procurement process. For instance, negotiating terms directly with suppliers occurs after RFQs or solicitations have been reviewed and preferred vendors have been identified. Inviting bidders for a formal bid opening is associated with a different procurement document, typically a Request for Proposal (RFP) or Invitation for Bid (IFB), which may require a more comprehensive evaluation of proposals rather than focusing solely on pricing. Initiating a pre-solicitation meeting is often done to clarify requirements and expectations but does not align with the core intent of an RFQ, which is centered on obtaining pricing information in a competitive manner.