RFQ or RFP? What is the difference between two?

A Request for Quotation, or an RFQ, is a method of procurement used to obtain price quotes from vendors. RFQs are most commonly used when...

• You have a commodity-style procurement (i.e. goods rather than services)
• Exact quantities and requirements are known
• Price will be the primary evaluation factor used to determine a winning vendor

A Request for Proposal, or RFP, is a method of procurement used to obtain detailed proposals from vendors for products or services (and is typically much more formal than an RFQ). RFPs are most commonly used when...

• You are dealing with a large, complex procurement
• You understand your project objectives but likely do not have well-defined specifications
• You will select a vendor based on the creative solution they propose (not necessarily the vendor with the lowest cost).

The main difference between RFP and RFQ is that an RFQ is sent when a business already knows what they want to purchase and only needs more information about the price, and an RFP is sent when a business needs more detailed information about the product or service itself.