HKSM

A procurement document used to ask potential vendors to provide prices for clearly specified, standard goods or routine services. In some situations it substitutes for an RFP, and in certain fields the term can carry a more limited or specific meaning.

Key Points

• Used to obtain price quotes for well-defined, common products or services.
• Selection is primarily price-based; technical approach is usually simple or predefined.
• Typically sent to multiple sellers to enable straightforward comparison.
• May be used instead of an RFP, with a narrower meaning in some industries.

Example

A project manager needs 100 standard laptops matching a published spec. The team issues an RFQ listing the model, configuration, quantity, delivery date, and warranty terms. Several vendors submit price quotes; the buyer compares total cost and lead time and awards the purchase to the lowest compliant quote.

PMP Example Question

Your team must buy 300 identical network switches with a fixed specification, and the decision will be based mainly on price. Which document should you issue to prospective sellers?

1. Request for Proposal (RFP)
2. Invitation for Bid (IFB)
3. Request for Quotation (RFQ)
4. Statement of Work (SOW)

Correct Answer: C — Request for Quotation

Explanation: An RFQ is used to obtain price quotes for standard, well-defined items when selection is primarily based on cost.