Canadian government procurement glossary

Request for Quotation (RFQ)

A Canadian government procurement notice used to solicit competitive prices for a clearly defined, lower-complexity requirement. An RFQ competes on price because the buyer already knows exactly what is needed.

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Definition

A Request for Quotation, abbreviated RFQ, is a procurement notice a Canadian public-sector buyer issues when the requirement is already fully defined and the deciding factor is price. Unlike a Request for Proposal, where vendors propose how a requirement will be met, an RFQ assumes the specification is fixed and asks suppliers simply to quote a price (and sometimes delivery terms) against that specification. RFQs are most common for standard goods and for straightforward, repeatable services below trade-agreement or internal approval thresholds.

How it works in Canadian procurement

Federal RFQs are often handled through standing offers, supply arrangements, or low-dollar acquisition processes rather than a full open tender, because the dollar values usually sit below the threshold that triggers a competitive RFP. Provincial and municipal buyers post RFQs on the same portals they use for larger tenders (MERX, Biddingo, Bids and Tenders, and their own vendor systems). The RFQ document states the exact specification, quantity, delivery location, and closing time. Award normally goes to the lowest compliant price. For services such as one-off carpet extraction or a single deep clean, a buyer may use an RFQ rather than an RFP because there is little for a vendor to propose beyond price and scheduling.

Common confusions

RFQ and RFP are routinely used loosely as synonyms, but they are distinct instruments. An RFP weighs technical merit against price and invites the vendor to propose an approach; an RFQ competes on price alone against a fixed specification. A second confusion is between an RFQ and a Request for Information, which gathers market intelligence and does not result in an award. Finally, the presence of the word quotation does not guarantee a pure low-price award: some buyers add minimum mandatory requirements (insurance, WSIB clearance, references) that a quote must satisfy before its price is even considered.

Frequently asked questions

What is the difference between an RFQ and an RFP?

An RFQ competes on price against a fully defined specification. An RFP asks vendors to propose how a requirement will be met and weighs technical merit against price.

Are RFQs used for cleaning contracts?

Occasionally, for simple one-off or low-dollar work such as a single deep clean. Recurring multi-site janitorial contracts are almost always procured through RFPs or standing offers instead.

Does the lowest RFQ price always win?

Usually, but only among quotes that meet the mandatory requirements. A non-compliant low quote (missing insurance, clearance, or specification conformance) can be disqualified before price is evaluated.

Related terms

See Request for Quotation (RFQ) terms in real Canadian government contracts

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