Catering Services and Food Procurement (CSFP) Toolkit
Request for Quotation (RFQ)
The Request for Quotation (RFQ) is the process used for lower value agreements. The intention is to make the purchasing process easier and by definition shorter in time, to complete.
The RFQ is at two levels
The “shortened” version of the RFQ is for agreements where the contract value, in terms of the cost for the service to the authority, is going to be less than £25,000. The general guideline for contracts up to this value, is for the authority to obtain a minimum of 3 quotations from organisations, that are capable to supply the service required, using a clearly written specification.
The standard version is for agreements greater than £25,000 but less than £93,000. In this instance a minimum of 5 quotations from organisations that are capable to supply the service, using a clearly written specification is required.
In both cases a maximum of 7 potential suppliers to whom RFQ invitations are to be sent is recommended. A greater number would reduce the attractiveness of the likelihood of a participant to win.
The minimum and maximum are for guidance only and it is up to the individual authority to decide on their individual parameters.
Evaluation of the RFQ submissions
The shortened version of the RFQ where values are likely to be under £25,000 would often be decided on price alone. Evaluation of the answers to the questions should be based upon “have the questions been adequately answered, yes or no?” If it is felt that the requirements do have a need for the potential suppliers to be assessed to a greater degree, then an evaluation process where the answers are scored should be implemented, using as a guide the process shown for the standard RFQ evaluation. It must be pointed out that due to the low value, any evaluation scoring process needs to be simple as by definition it is normally used only where the requirements are more complex, which is not usual in low value agreements.
The standard RFQ process is in reality a mini-competition and as such a more formalised assessment is required. However, it is still important to keep the process as simple as possible and the guidance given within the RFQ package should form the basis for such a process. It is suggested that, in the same way as an Invitation to Tender is assessed, a greater proportion of the marks scored are attributed to the technical ability of the potential supplier. Costs should assume a lower priority but in the case of an RFQ 60% of the value of the score should be for technical ability with the balance being attributed to costs.
It is the Contracting Authority’s responsibility to use an appropriate mechanism to ensure a fair, transparent and auditable process.
Templates and resources
- Sample shortened request for quotation (RFQ)
- Sample shortened RFQ specification
- Sample request for quotation (RFQ)
- Sample RFQ specification
- Sample RFQ evaluation model
- Sample RFQ evaluation scoresheet
Page last modified: 21 February 2008
Page published: 21 February 2008