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.
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
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.
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.
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
- Request for Proposal (RFP): A formal procurement notice used by Canadian government buyers to solicit competitive bids for goods or services of every kind, from professional services and construction to IT, facilities, and cleaning contracts.
- Standing Offer: A pre-arranged Canadian government procurement vehicle that lets buyers issue call-ups for goods or services on demand, at pre-negotiated rates, without re-running a full RFP each time.
- Supply Arrangement: A federal Canadian procurement vehicle that pre-qualifies vendors for future competitive call-ups, without committing to fixed pricing up front.
- CanadaBuys: The Government of Canada's central electronic tendering service for federal goods and services procurement across all categories, from IT and consulting to construction, facilities, and cleaning.
See Request for Quotation (RFQ) terms in real Canadian government contracts
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