Request for quotation (RFQ): the small-purchase route agencies use to buy rides
Overview
A request for quotation (RFQ) is a short price request an agency uses for smaller purchases, in place of a sealed bid or full proposal. Federal simplified procedures cover buys up to $350,000, and the overhauled rules allow an RFQ for commercial services up to $9 million. A quote is not a binding offer under the FAR, but each RFQ can set its own price-hold period.
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What an RFQ is
An RFQ asks bidders for prices on a defined need and lets the buyer skip the full proposal process. The agency describes the work, sets a due date, compares the quotes and issues a purchase order. An invitation for bid is sealed, opened in public and won on the lowest responsive price. A request for proposals is scored and can be negotiated. An RFQ sits below both, and under FAR 13.106-2 a contracting officer buying this way has broad discretion over how to evaluate. Formal evaluation plans, a competitive range, discussions and scoring are not required. Federal quotes generally need an active SAM.gov registration, which the government contracts guide walks through.
Some agencies use the same letters for something else. Community in Motion, a Washington broker, writes RFQ for Requests for Qualification and opens one when it needs a specific transportation type or county. Our guide to the request for qualifications covers that pre-qualification step.
How big can an RFQ-sized purchase be?
For the federal government the line is the simplified acquisition threshold, which FAR 2.101 sets at $350,000. Under FAR 13.003, a purchase above the micro-purchase threshold and at or below that line is set aside for small businesses. The micro-purchase threshold is $15,000, but it drops to $2,500 for services covered by the Service Contract Labor Standards. VA’s Hines RFQ includes the Service Contract Labor Standards clause and attaches Service Contract Act wage determinations, which puts a buy like it under the lower figure.
The overhauled FAR, compiled with an effective date of July 1, 2026 and applied by VA through deviations, goes further. Its section 12.201-1 says that for commercial products and services valued up to $9 million, the agency issues an RFQ followed by a purchase order. VA’s Hines RFQ cites both FAR part 13.5 and the overhauled part 12.
State and local rules set their own, lower lines. In Massachusetts, chapter 30B section 4 requires a procurement officer to seek written quotations from at least three suppliers for purchases of $10,000 to $50,000, with the award going to the lowest quotation. Under $10,000 the buyer uses sound business practices.
What goes into a winning ride quote
A ride quote is a price schedule plus proof you can run the service on day one. VA’s Hines RFQ (36C25226Q0498), posted June 11, 2026 for special mode transportation, spells out both volumes.
- Price volume. The SF 1449 with the offeror blocks filled in, firm fixed prices on every line of the price schedule for the base period and all priced periods, the certifications, a business associate agreement and a certificate of liability insurance. VA warned that an incomplete price schedule or added fees could make the quote unacceptable.
- Experience. At least three years transporting medical patients, with evidence of similar contracts. Only the prime contractor’s own experience counted.
- Fleet. A plan naming the wheelchair vans and sedans for this contract, backed by bills of sale, leases or agreements conditioned on award. VA said mere statements of intent to buy vehicles may be rated unacceptable.
- Drivers. A hiring plan and a training plan, supported by a driver roster with personal details redacted, negotiated agreements conditioned on award, or planned job fairs.
- Reliability. Plans for on-time pickup and delivery, a pool of backup drivers and vehicles, communication with hospital staff, and quality control, plus the GPS software to be used.
The Hines RFQ evaluated quotes by comparing them with one another under FAR 13.106-2(b)(3), across price, technical content, experience, management plan, quality control and past performance. VA reserved the right to pick a quote above the lowest price. The Spokane RFQ (36C26027Q0022, posted September 1, 2026) used a simpler test, technical and price, with price taking precedence as the deciding factor. Our VA transportation guide shows how to price both.
Is a quote a binding offer?
Under the FAR, no. FAR 13.004 says a quotation is not an offer and cannot be accepted to form a binding contract. The purchase order is the government’s offer, and the contract forms when the supplier accepts it. The overhauled section 12.201-1 says the same thing, and adds that acceptance can be in writing or by substantial performance.
An individual RFQ can still ask you to hold your price. The Hines RFQ told quoters to hold prices for 30 calendar days after the due date. The Spokane RFQ used SF 1449 provisions that speak of offers: hold prices for 60 calendar days, and written acceptance of an offer within that time makes a binding contract. Price as if the terms in the RFQ bind you, because for that solicitation they may.
Will I hear who won?
Maybe not, so watch for the result. The Hines RFQ says the contracting officer will not notify unsuccessful quoters. For purchases at or below the simplified acquisition threshold, FAR 13.106-3(c) requires notice to unsuccessful suppliers only if they ask for it or FAR 5.301 requires it. Our guide to finding out who won a ride contract shows where awards and unit prices are posted.
Pricing from your own trips
A quote is only as good as your cost per trip. HealthRide’s trip log records the GPS-recorded miles and the scheduled and actual times of each leg, and exports as a CSV or PDF, which gives you a history to price from. See reports for what it covers.
Frequently asked questions
- Is an RFQ the same as an RFP?
- No. An RFQ asks for prices and a few supporting documents, and the agency answers with a purchase order. An RFP asks for a full proposal that is scored and may be negotiated. Under FAR 13.106-2, a contracting officer buying under simplified procedures does not need a formal evaluation plan, a competitive range or discussions.
- How much can an RFQ be worth?
- Under the codified FAR, simplified acquisition procedures cover purchases up to the $350,000 simplified acquisition threshold. The overhauled FAR text allows an RFQ followed by a purchase order for commercial products or services valued up to $9 million. State and local limits are lower. Massachusetts, for one, uses written quotes for local purchases from $10,000 up to $50,000.
- Do I have to hold my price after I quote?
- For the length of time the RFQ states. VA's Hines RFQ asked quoters to hold prices for 30 calendar days after the due date, and the Spokane RFQ asked for 60 calendar days. Check the instructions to quoters before you price an option year or a fuel-sensitive rate.
- Will the agency tell me if I lost?
- Not always. VA's Hines RFQ says the contracting officer will not notify unsuccessful quoters. For purchases at or below the simplified acquisition threshold, FAR 13.106-3(c) requires notice to unsuccessful suppliers only when they ask for it or when FAR 5.301 requires it, so watch SAM.gov and ask in writing.
- Does RFQ ever mean request for qualifications?
- At some agencies it does. Community in Motion, a Washington broker, writes its RFQ as Requests for Qualification and opens one when it needs a specific transportation type or county. Read the full title and the instructions before you decide what to send.