Some requests for quotation fit on one page: a table of line items, a quantity and a unit for each, a delivery address and a due date. There is no statement of work, no scope narrative and no drawings. It looks like the easiest bid you will see all month: look up the cost, add a margin, fill in the column.
That apparent simplicity is the risk. A line-item RFQ still has a scope. It is scattered across the columns, the clauses and the attachments nobody opens. The buyer wrote it knowing what they meant, and they will hold you to it.
The scope is in the columns
Read every column of the pricing table as a requirement, not just the description and quantity.
- Unit of issue. "EA", "BX", "CS" and "LOT" are not interchangeable. A box of 50 priced as each, or a case priced as a box, is a factor-of-ten error that a lowest-price evaluation will happily award.
- Part numbers and "or equal". A manufacturer part number with no "or equal" language is a brand-name requirement. One with it lets you offer an alternative, but only if you prove it is equal on the features the buyer listed. Equals get rejected for that reason more than any other. See why equals get rejected.
- Quantity type. A firm quantity is a promise. An estimated quantity on an indefinite-delivery line is not, and unit prices put the volume risk on you when the actual number comes in low.
The scope is in the delivery terms
The price you quote is a price delivered somewhere, under some conditions. Find out which.
- FOB origin or FOB destination. At destination, freight and the risk of damage in transit are yours, and they belong in the unit price.
- Delivery schedule. "Within 30 days after receipt of order" on a long-lead item means you are quoting the expediting, or the late-delivery problem.
- Delivery point. A loading dock, a room on the fourth floor and a remote site are three different costs. Inside delivery, unpacking and debris removal are often in the clauses rather than the line items.
- Partial shipments. If they are not allowed, your whole order waits on the slowest item.
The scope is in the clauses
A one-page RFQ often incorporates pages of terms by reference. The ones that move price:
- Domestic-preference rules, such as the Buy American or Trade Agreements clauses. They can rule out the product your distributor quoted.
- Warranty, installation or training buried as a clause rather than a line item.
- Labor standards. If any of the work is a service performed on site, a wage determination may apply. The wage determination is part of your estimate.
- Packaging and marking requirements, which matter most on defense supply RFQs.
Questions to send before the Q&A closes
Ambiguity in a line-item RFQ is the buyer's to resolve, but only if you ask in time. A short, specific question beats an assumption buried in your quote, which may make your quote nonconforming. Questions worth asking:
- Is the unit of issue for line X each, box or case, and how many units are in a box or case?
- Is "or equal" acceptable on line X, and against which features will equality be judged?
- Is delivery FOB destination, and does it include inside delivery to the point of use?
- Are quantities firm, or estimates for the ordering period?
- Are partial shipments acceptable, and can items ship as they become available?
Ask before the question deadline, which is often days before the quote is due. The dates that are not the deadline catch more bidders than the deadline itself.
A last pass before you submit
Before the quote goes out, re-read the table with your prices in it, one line at a time:
- Does each unit price match the unit of issue, not the unit your supplier quoted?
- Does each extended price equal unit price times quantity? A mismatch invites a clarification at best, and an evaluator choosing which number binds you at worst.
- Is freight in the price, or listed where the RFQ allows a separate line?
- Did any amendment change a quantity, a part number or a delivery date?
A line-item RFQ rewards the bidder who read it as carefully as a forty-page RFP. Most competitors will not, and that is the opening.
