Request for Quotation

If the requisition requests an item for a higher dollar amount with no existing supplier, then purchasing may obtain quotes or bids from potential suppliers. Purchasing forwards a request for quotation to suppliers inviting them to submit a bid for a purchase contract. The form provides space for the information that suppliers require to develop an accurate quotation, including the description of the item, quantity required, date needed, delivery location, and whether the buyer will consider substitute offers. Purchasing can also indicate the date by which it must receive the supplier’s quotation. The supplier completes the form by providing name, contact person, unit cost, net amount, and any appropriate payment terms. The supplier then forwards the request for quotation to the buyer for comparison with other quotations. The normal practice is for a buyer to request at least three quotations. Purchasing evaluates the quotations and selects the supplier most qualified to provide the item.