A Request for Quotation (RFQ) is most effective when the requirement is clearly specified and the decision will be based primarily on price. A framework agreement is a pre-established arrangement with a group of suppliers for a defined set of goods or services. When a specific need arises under this agreement, a 'call-off' or 'mini-competition' is conducted. An RFQ is the ideal instrument for this mini-competition because the suppliers are already vetted and the core terms are agreed upon, allowing the buyer to efficiently obtain the best current price for a well-defined, standard requirement.

A. With an ambiguous specification: An RFQ is unsuitable for ambiguous specifications, as suppliers cannot provide accurate, comparable quotes. This situation requires a Request for Proposal (RFP).

C. Under a complex process: Complex processes or requirements need a detailed evaluation of the supplier's proposed solution and capabilities, which is characteristic of an RFP, not a price-focused RFQ.

D. With strategic items: Procuring strategic items involves building long-term partnerships and considering total value and risk, not just the lowest price. A more collaborative or strategic sourcing approach is required.

1. Lysons

K.

& Farrington

B. (2020). Procurement and Supply Chain Management (10th ed.). Pearson. In Chapter 10

'Sourcing'

the text explains that RFQs are used for straightforward

clearly specified requirements where price is the main determinant. It also discusses framework agreements (Section 10.6) where mini-competitions are used for call-offs

a process for which RFQs are perfectly suited.

2. CIPS (Chartered Institute of Procurement & Supply). (2018). Commercial Contracting (L4M3) Study Guide. Profex Publishing. Chapter 2

'The Sourcing Process'

details the use of different procurement documents. It clarifies that RFQs are appropriate for standard

off-the-shelf items with clear specifications

a condition met during call-offs under an established framework agreement.

3. Telgen

J.

& Schotanus

F. (2011). Framework agreements in the public sector: An economic analysis. In Public Procurement: The Continuing Revolution (pp. 121-136). Palgrave Macmillan

London. This text discusses the efficiency of framework agreements

noting that the second stage (the call-off) is often a simplified competition based on price for specific orders

which aligns directly with the function of an RFQ (p. 125).