Case Study: Preparing RFQ Documents in the Sourcing Process

Case Study: Preparing RFQ Documents in the Sourcing Process

Background

In the sourcing process, the preparation of Request for Quotation (RFQ) documents is a step that directly influences the success of procurement activities. A RFQ is a formal document that invites suppliers to submit price quotations for specific products or services. The quality and comprehensiveness of the RFQ documents determine the clarity of communication with potential suppliers and the competitiveness of the bids received.

The structure and content of RFQ documents should be tailored based on the strategic importance of the procurement, often assessed using the Kraljic Matrix. This matrix categorizes procurement items based on their profit impact and supply risk, guiding the selection of appropriate sourcing strategies. For instance, items classified as ‘strategic’ may necessitate a partnership approach with suppliers, while ‘leverage’ items might benefit from competitive tactics such as reverse auctions to achieve market pricing. 

This case is part of the course Sourcing process 2b. Learn more about Kraljic in the course Get to know Kraljic.

Content….

Key components of RFQ documents include:

  1. RFQ Cover Letter: This letter introduces the RFQ to potential suppliers, providing an overview of the procurement opportunity and essential submission guidelines. It sets the tone for the engagement and outlines critical dates and contact information. 
  2. Specifications: Detailed descriptions of the products or services required, encompassing technical specifications, performance criteria, and quality standards. Clear specifications ensure that suppliers fully understand the requirements and can provide accurate quotations.
  3. Contract Template or General Terms and Conditions: Standardized contractual terms that define the legal framework for the procurement, including clauses on delivery, payment terms, warranties, and dispute resolution. Providing these upfront ensures that suppliers are aware of the contractual obligations associated with their quotations.
  4. Evaluation Criteria (including price/price model): A list of questions or criteria that will be used to assess supplier responses. This may include factors such as compliance with specifications, pricing, delivery timelines, and after-sales support. And of course guiding supplier offer to a preferred price model. Clearly defined evaluation criteria facilitate an objective comparison of supplier offerings. 

The approach to market, including the choice of sourcing tactics, should align with the item’s classification in the Kraljic Matrix. For example, for ‘strategic’ items, fostering long-term partnerships may be prioritized, whereas for ‘leverage’ items, competitive bidding strategies like reverse auctions can be employed to drive down costs. 

Task for Buyers-in-Training

As part of your training, you are tasked with preparing a comprehensive RFQ document package for the procurement of the specified component. Your deliverables should include:

  1. RFQ Cover Letter: Draft a professional cover letter that introduces the RFQ, outlines the procurement opportunity, provides submission instructions, and highlights key dates.
  2. Specifications: Develop a detailed specification document that clearly defines the technical and performance requirements of the component, ensuring that potential suppliers understand the exact needs.
  3. General Terms and Conditions: Compile a set of standard contractual terms that will govern the procurement, addressing aspects such as delivery schedules, payment terms, warranties, and compliance requirements.
  4. Evaluation Criteria: Create a list of criteria that will be used to assess supplier responses, including but not limited to compliance with technical specifications, pricing (price model), delivery capabilities, and quality assurance measures.

Guidelines

  • Alignment with Sourcing Strategy: Ensure that the RFQ documents reflect the sourcing strategy appropriate for a ‘leverage’ item. Consider incorporating competitive elements such as a reverse auction to leverage the favorable supply market conditions.
  • Clarity and Precision: Use clear and unambiguous language in all documents to prevent misunderstandings and ensure that suppliers can provide accurate and comparable quotations.
  • Comprehensive Coverage: Address all critical aspects of the procurement in the RFQ documents to provide suppliers with a complete understanding of requirements and expectations.
  • Standardization: Utilize standardized templates where possible to maintain consistency and facilitate the evaluation process.

By completing this task, you will gain practical experience in preparing RFQ documents that effectively communicate procurement requirements, align with strategic sourcing principles, and facilitate the selection of the most suitable supplier.

Case 1: IT Support Services for EduCity University

Kraljic Category: Strategic Item
Scenario:
EduCity is looking to outsource its on-campus and remote IT helpdesk support for staff and students. The service must cover software support, basic troubleshooting, hardware coordination, and account access issues. Availability is required during office hours with on-call support for emergencies.

Your Task:

  • Draft an RFQ letter introducing the opportunity
  • Create a Service description including scope, availability, channels (phone/chat/email), escalation paths
  • Include a Service Level Agreement (SLA) with resolution times, first-response KPIs, and uptime expectations.
  • Add a section in the RFQ letter about suggested price model.
  • Attach General Terms and Conditions covering contract duration, penalties for SLA breach, etc.

Case 2: Sustainable Office Furniture for NordicBank

Kraljic Category: Leverage Item
Scenario:
NordicBank is redesigning three regional offices and wants to source sustainable desks, task chairs, and modular meeting tables. All items must meet ergonomic and environmental certifications (e.g., FSC wood, GREENGUARD).

Your Task:

  • Write an RFQ letter to invite bids from shortlisted suppliers
  • Create a Technical Specification document with product dimensions, adjustability, materials, and durability requirements
  • Include a Questionnaire (including price model)  about environmental and quality certifications
  • Reference your General Terms and Conditions, especially related to delivery, installation, and warranties

Case 3: Creative Design Services for Sparkle Cosmetics

Kraljic Category: Leverage Item
Scenario:
Sparkle wants to establish a panel of freelance designers and small agencies to deliver packaging concepts, social media visuals, and influencer content. You need creative partners with a strong design aesthetic and proven speed.

Your Task:

  • Draft an RFQ letter inviting candidates to submit a price list and work samples
  • Provide a Service Description defining typical creative requests and timelines
  • Ask for portfolios and responses to a short questionnaire about software skills, turnaround time, and capacity, Include a pre-defined price model.
  • Include General Terms, including IP transfer and confidentiality clauses

Case 4: Regional Warehousing Services for NorthGear Outdoor

Kraljic Category: Strategic Item
Scenario:
NorthGear is looking to partner with a logistics provider to manage a new regional warehouse and handle B2B and e-commerce fulfillment. Scalability, IT integration, and seasonal flexibility are key.

Your Task:

  • Write an RFQ invitation letter that communicates your strategic intent
  • Develop a Service description detailing expected volumes, IT system integration, lead times for pick/pack/delivery
  • Include a Service Level Agreement (SLA) covering error rates, fulfillment speed, and customer satisfaction metrics
  • Attach your General Terms and Conditions related to liabilities, data security, and exit clauses

Case 5: Promotional Print Materials for FashionFix

Kraljic Category: Minimize attention
Scenario:
FashionFix produces high-quality lookbooks, flyers, and in-store signage for seasonal campaigns. These materials must reflect the brand aesthetic and be delivered reliably under tight deadlines.

Your Task:

  • Write an RFQ cover letter emphasizing the importance of brand alignment
  • Prepare a Service Description with typical product types, expected turnaround, and print quality levels
  • Include a Technical Specification for lookbook dimensions, finishes, and color matching requirements
  • Add a brief supplier questionnaire (including price model) and standard terms covering late delivery penalties and confidentiality

Case 6: Cloud-Based Travel Management Solution for NordFinance

Kraljic Category: Leverage Item
Scenario:
NordFinance wants to modernize its business travel process by contracting a digital platform that supports flight, hotel, and rail bookings, integrated travel policies, and carbon tracking.

Your Task:

  • Draft an RFQ letter to digital travel service providers
  • Include a Service Description listing key functions (e.g., self-booking tool, manager approval, policy enforcement)
  • Add a Questionnaire (including price model) about API integration, data security, and sustainability features
  • Include your General Terms and Conditions, particularly regarding GDPR compliance and user support SLAs

Case 7: Temporary Staffing for TechBridge Projects

Kraljic Category: Strategic Item
Scenario:
TechBridge relies heavily on contract developers and analysts. They want to consolidate to 2–3 high-performing staffing agencies that can provide vetted talent (SW engineers) across several tech stacks.

Your Task:

  • Create an RFQ letter inviting agencies to bid for inclusion in a long-term framework
  • Develop a Statement of Work (SOW) outlining job roles, expected lead times, compliance expectations, and onboarding process
  • Include evaluation questions (including price model) around agency capacity, recruiter experience, and compliance standards
  • Attach General Terms, covering mark-up transparency, NDA compliance, and non-solicitation clauses

Case 8: Technical Packaging Supplies for ShipCo Logistics

Kraljic Category: Leverage Item
Scenario:
ShipCo needs to re-source packaging materials—pallets, stretch wrap, tape, and reusable containers. They’re aiming to consolidate spend and optimize logistics efficiency.

Your Task:

  • Draft an RFQ letter for packaging suppliers
  • Prepare Technical Specifications for each item type (e.g., stretch wrap thickness, crate size, weight limits)
  • Include a Questionnaire (including price model) about product sustainability, and delivery flexibility
  • Reference General Terms, focusing on delivery guarantees and quality assurance clauses

Student Deliverables for Each Case

Each group should prepare:

  1. A professional RFQ cover letter
  2. The appropriate documentation (Technical Spec, SOW, SLA, or Service Description)
  3. A supplier questionnaire or evaluation sheet
  4. An attachment or reference to General Terms and Conditions

Describing What You Are Buying: Key Approaches for RFQ Preparation

As a buyer-in-training, one of the most critical challenges you’ll face when preparing an RFQ is clearly and accurately describing what you want suppliers to deliver. How well you define this will directly affect the quality of quotes, the ease of evaluation, and the long-term success of the supplier relationship.

Depending on what you’re buying—and how it aligns with your sourcing strategy and the Kraljic Matrix—you’ll use different types of documentation to define your needs. The four main tools are:

  1. Technical Specification
  2. Service Description
  3. Statement of Work (SOW)
  4. Service Level Agreement (SLA)

Each serves a different purpose, and understanding when and how to use them is essential.

1. Technical Specification – The “What” in Detail

Best for: Clearly defined products or materials with measurable attributes.
Use when: You are sourcing physical goods, components, or equipment.

A technical specification defines the physical, functional, and performance characteristics of a product. It typically includes exact measurements, standards (e.g. ISO), materials, tolerances, and compliance requirements.

📌 Example: When sourcing laptops, the specification might include RAM size, processor type, screen resolution, number of USB ports, weight, energy efficiency standards, and warranty requirements.

Why it matters: Technical specs remove ambiguity. Suppliers know exactly what they must quote for, making responses more comparable and aligned.

Source: Technical Specification for Buyers – Learn How to Source

2. Service Description – The “What” at a High Level

Best for: Standardized, recurring, or subscription-based services.
Use when: You need ongoing services with predictable scope (e.g., cleaning, IT support, HR outsourcing).

A Service Description outlines the type of services delivered, frequency, availability, and general expectations. It doesn’t go deep into task-level detail but provides a high-level view of what’s covered.

📌 Example: In an office cleaning contract, a service description might include: “Daily cleaning of workspaces and meeting rooms, weekly floor polishing, and monthly window cleaning.”

Why it matters: Service Descriptions are ideal when tasks are routine and predefined. They’re easy to maintain and sufficient for services with low risk or complexity.

Source: Service Description and Statement of Work – Learn How to Source

3. Statement of Work (SOW) – The “What, When, and How”

Best for: Complex or project-based services with clear deliverables.
Use when: You are outsourcing design, construction, software development, consulting, etc.

A Statement of Work is a detailed document that includes:

  • Deliverables and timelines
  • Project milestones
  • Roles and responsibilities
  • Acceptance criteria
  • Reporting and communication plans

📌 Example: In a consulting SOW, you might define phases such as “Current state analysis,” “Solution design,” and “Training delivery,” with timelines and deliverables for each.

Why it matters: A good SOW ensures accountability. It clarifies who delivers what, when, and under what conditions. This prevents scope creep and misalignment.

Source: Statement of Work – Learn How to Source

4. Service Level Agreement (SLA) – The “How Well”

Best for: Any service where performance must be tracked and managed.
Use when: You want to define performance expectations, penalties, and response times.

An SLA outlines specific performance metrics such as:

  • Response times
  • Uptime/availability
  • Delivery accuracy
  • Resolution times for issues
  • Escalation procedures

📌 Example: In an IT support SLA: “Priority 1 issues must be responded to within 1 hour and resolved within 4 hours. 99.9% uptime guaranteed.”

Why it matters: SLAs hold suppliers accountable for the quality of service and create shared expectations around performance.

Source: Service Level Agreement Explained – Learn How to Source

Supporting material Step 5: Preparing a Request for Quotation (RFQ) Package for Services

When it’s time to formally request bids from suppliers, a well-crafted RFQ package is essential. In Step 5 of the sourcing process, buyers turn their sourcing strategy into an actionable RFQ for services. This stage is about translating your requirements and strategy into a clear set of documents that invite suppliers to quote. Unlike product sourcing (where specs might be straightforward), service procurement demands extra attention to defining scope and performance expectations. The RFQ package for services typically includes several components – an invitation/cover letter, a Statement of Work (SOW) or service description, a Service Level Agreement (SLA), a supplier response questionnaire or defined evaluation criteria (including price model), and the general terms and conditions. Each piece plays a role in ensuring suppliers understand what you need and how to respond.


This post will walk through those components and explain how to tailor your RFQ to different service scenarios. We’ll also discuss how the tone and content of your RFQ should reflect your sourcing strategy and the service’s category position (for example, whether the service is a routine commodity or a strategic partnership). You’ll find examples of formal RFQ invitation letters for a simple cleaning service, a mid-range creative service, and a complex IT outsourcing – each with different timelines and complexity. Finally, we provide a reusable RFQ letter template that you can adapt for sourcing simulations or real-world use. By the end, you should have a clear blueprint for preparing an RFQ package that is professional, comprehensive, and aligned with procurement best practices.

Key Components of a RFQ Package for Services

A complete RFQ package for services ensures that all bidders receive the same information and can quote on the same basis​ blog.learnhowtosource.com.

For services, this package usually contains the following elements:

  • Invitation Letter (Cover Letter) – A formal letter inviting suppliers to quote, providing a summary of the request and important instructions including a timeline for the full event.
  • Statement of Work (SOW) or Service Description – A detailed description of the services required (scope, tasks, deliverables, timeline, etc.).
  • Service Level Agreement (SLA) – The expected performance standards and service levels, with metrics and remedies for non-performance (when relevant).
  • Supplier Questionnaire / Response Form & Evaluation Criteria – A structured form or list of information the supplier must submit (company info, experience, pricing model/breakdown, etc.), along with criteria by which you will evaluate the quotes.
  • General Terms and Conditions – The standard contract terms or legal conditions that will govern the service (often included as an annex or reference).

Each of these components should be prepared with care. Below, we discuss what to include in each part of the RFQ package and why it matters.

RFQ Invitation Letter (Cover Letter)

The cover letter – also known as an invitation to quote – sets the tone for your RFQ. It’s the first thing a supplier reads, and it should clearly state what you’re seeking and how the supplier should respond. A professional RFQ invitation letter typically includes: the RFQ’s subject and reference, a brief introduction to your company and the project, a summary of the services needed, instructions on how and when to submit the quotation, event timeline and a contact for inquiries, all wrapped up in a courteous, formal business format​ rfqpro.com.

Key details to cover in the letter are:
RFQ Reference and Subject: For example, “RFQ #2025-05 – Office Cleaning Services.” This helps suppliers quickly identify the purpose of the letter​ rfqpro.com.

Introduction and Context: A short opening introducing your organization and the service requirement. For instance, mention that you are sourcing cleaning services for a corporate office, or IT support for a helpdesk, etc. If this RFQ follows a prior RFI or market research phase, you might note that the supplier was shortlisted to participate.

Scope Summary: A few sentences about what service is needed. Keep it high-level here (details will be in the SOW). Example: “We request a quotation for daily office cleaning services for a facility of approximately 2,000 square meters, as described in the attached Statement of Work.”

Attachments/Enclosures: Explicitly mention the documents included in the RFQ package (SOW, SLA, questionnaire, terms). For example: “Please find attached: 1) Statement of Work, 2) Service Level Agreement requirements, 3) Supplier Response Form, and 4) our General Terms and Conditions.”

Submission Details and Deadline: Clearly state how to submit the quote (email, portal, physical delivery) and the deadline date and time. If there’s a required format (e.g. “complete the attached quote form”) or if multiple copies are needed, specify that as well. For instance: “Quotations are due by April 30, 2025, 5:00 PM (GMT) via email to sourcing@example.com.” You may also request a confirmation of intent to respond. Including a timeline when you expect to decide supplier and when delivery is planned to start will ad further edge to your RFQ.

Evaluation Method (optional to mention here): If you plan to award based on lowest price meeting the requirements or use a weighted scoring, you can hint at it. For straightforward services it may be enough to say, “The contract will be awarded to the supplier offering the best overall value in line with the defined requirements.”

Contact for Questions: Provide a name, email, and phone number for any RFQ-related inquiries, and if applicable, a cutoff date for questions. E.g. “Questions may be directed to Jane Doe (jane.doe@example.com) by April 23, 2025. All clarifications will be shared with all invited bidders.”

Closing Courtesies: Thank the suppliers for their interest and express that you look forward to their quotation. Close with a formal sign-off (“Sincerely,”), your name, title, and company.
Make sure the tone of the letter matches your sourcing approach (more on that later). In all cases, the letter should be concise, clear, and professional. It serves as both a summary and a set of instructions. As one industry guide notes, the cover letter should include everything from the issue date and RFQ reference down to where and to whom responses must be sent, and it should end with your signature and title ​rfqpro.com. Essentially, this letter is the roadmap that guides the supplier through the rest of the RFQ package.


Statement of Work (SOW) / Service Description

The Statement of Work (SOW) – or alternately the Service Description – is arguably the heart of an RFQ for services. It defines what work needs to be done. A well-written SOW provides detailed and unambiguous specifications of the service requirements so that all suppliers are quoting on the same understanding​.

The SOW should cover:
Scope of Work & Objectives: Outline the boundaries of the service – what is included (and possibly what is out of scope). State the objectives or desired outcomes of the service. For example, for cleaning services, the scope might be “daily cleaning of all office areas, weekly deep cleaning of restrooms, monthly window washing,” etc., with the objective of maintaining a hygienic work environment.

Specific Tasks and Deliverables: Break down the specific tasks the supplier will perform and any tangible deliverables or reports. For an IT support service, tasks might include “provide 24/7 helpdesk support, on-site support for hardware issues, monthly performance reports”​. For a marketing design service, deliverables might be defined as “design concepts, revisions, and final art files for a new product brochure.”

Timeline and Milestones: Indicate the service start date, end date or contract duration, and any interim milestones. For project-based services, list key milestones (e.g. design draft due by X date, review period, final delivery by Y date). For ongoing services, specify the service hours or schedule (e.g. “cleaning to be done weekdays after 6 PM”).

Quantity or Volume Estimates: If applicable, include quantity metrics – e.g. “approximately 3 visits per week” or “supporting ~300 end-users”​ so suppliers can size their quote. In service RFQs, quantity might mean frequency of service or volume of work (like number of offices to clean, number of tickets per month in IT support, etc.).

Quality Standards and Performance Requirements: Clearly state any quality expectations. This can be basic or tied closely with the SLA. For example, “All cleaning must meet the cleanliness standards outlined by XYZ (no visible dirt, proper trash disposal, etc.)” or “Design work must align with our brand guidelines.” In an IT support SOW, you might say “support requests must be resolved according to the priority levels defined (e.g., critical issues resolved within 4 hours).” These ensure the vendor knows the level of quality you expect​.

Roles and Responsibilities: Clarify if any responsibilities are shared or if the buyer will provide resources. For instance, “the company will provide access to premises and utilities, the vendor is responsible for all cleaning equipment and supplies.” In project work, specify points of contact on both sides, etc.

Delivery or Logistics Requirements: Note any logistical details: for cleaning, maybe security clearance needed for after-hours access; for IT, perhaps requirements for on-site presence on certain days​.

Additional Information: Any other pertinent requirements, such as compliance needs (e.g. safety regulations, confidentiality), service-specific constraints, or assumptions. For example, “Service provider must adhere to data protection policies”​ or “Design work shall become the intellectual property of the buyer upon payment.”

A comprehensive SOW eliminates ambiguity and “sets the stage for potential suppliers to understand and accurately respond to the organization’s needs”​. It ensures all bidders are basing their quotes on the same expectations, which makes it much easier for you to compare their offers fairly and of course get you the delivery required. A clear SOW helps prevent scope creep and misunderstandings down the line – by detailing what is and isn’t included, you reduce the risk of disputes and extra costs later​. In sum, the SOW defines “what will be done” in the service engagement, forming the foundation for both the supplier’s proposal and the future contract​ legittai.com.

(Tip: If you have performance requirements, you may split some out into the SLA section. The SOW and SLA often work together: the SOW describes the work and outputs, and the SLA describes the performance levels and how they’re measured. In some RFQs, especially smaller ones, the SOW and SLA might be combined in one document.)

Service Level Agreement (SLA) Requirements

For service procurement, an SLA is a critical piece whenever service quality and reliability are important. The SLA sets out how well the work must be done, complementing the SOW’s definition of what is to be done​ legittai.com.

In an RFQ package, you might include a draft SLA or at least the key performance indicators that will be part of the SLA. An SLA typically defines the level of service expected from the vendor, the metrics to measure that service, and remedies or penalties if standards are not met ​cio.com.

Key elements to include or outline in the SLA section of your RFQ are:
Performance Metrics: Clearly specify the service metrics and targets. These could be things like uptime percentage, response time, resolution time, turnaround time for deliverables, customer satisfaction scores, etc. For example, you may require “99.9% system uptime” or “all critical support tickets resolved within 4 hours”. A telecom SLA might promise network availability of 99.999% uptime​
cio.com; an IT support SLA might set first-response times and resolution times for incidents.

Measurement and Monitoring: Explain how performance will be measured and reported. Will the vendor provide monthly performance reports? Will certain tools or monitoring systems be used? Defining this ensures both parties agree on how to verify the service levels. For instance, “Vendor must use our ticketing system to log all support calls, which will be used to track response and resolution times.”

Remedies/Penalties for Breach: Outline what happens if the supplier fails to meet a SLA metric. Common remedies include service credits (a reduction in fees for downtime or poor performance), financial penalties, or, in severe cases, the right to terminate the contract. For example, “For each 1% below the 99% uptime target per month, the monthly service fee will be reduced by 5% as a service credit.” Including expected remedies in the RFQ signals to vendors the importance of performance and allows them to factor the risk into their pricing.

Bonus or Incentives (if any): Less common in RFQs, but sometimes contracts include bonuses for exceeding performance targets. If you intend to have any, mention them.

Review and Adjustment: Note if the SLA will be reviewed periodically (say annually) to adjust to changing needs. This shows a partnership mindset that the agreement can evolve.

Service Hours and Support Levels: If not already in SOW, specify when and how service is delivered – e.g. “24/7 support” or “on-site support from 9-5, with on-call after hours.” This directly affects the SLA metrics like response time.

In short, the SLA section makes explicit what “success” looks like in measurable terms. According to one definition, “a service-level agreement defines the level of service expected from a vendor, laying out metrics by which service is measured, as well as remedies should service levels not be achieved”​
cio.com.

By including SLA expectations in your RFQ, you ensure that suppliers understand the performance requirements and factor them into their quote. This avoids unpleasant surprises later if a vendor says they didn’t price for a 1-hour response time, for instance. It also allows you to compare vendors on not just price but their ability to meet your quality standards.

Supplier Questionnaire and Evaluation Criteria

To fairly compare supplier offerings, it’s helpful to provide a questionnaire or structured response format in the RFQ package. This document (sometimes called a Supplier Response Form or Bidder Questionnaire) ensures that each vendor provides the key information you need in a consistent way sievo.com. It consists of with your evaluation criteria (including price model), making it easier to score or assess the responses side by side.

Typical sections or questions include:
Vendor Profile: Basic information about the company – legal name, years in business, size, location, relevant certifications or licenses. (For example, ask: “Provide a brief company profile including number of years providing XYZ service, and any industry certifications held.”)

Experience and References: Questions about the vendor’s relevant experience with similar services. You might require “Provide at least 2 examples of contracts in the last 5 years similar in scope, with client references.” In the RFQ, you can explicitly require documents like “a profile of the company, proof of legal registration, evidence of minimum 3 years’ experience in providing [the service], and CVs of key staff”​
procurement-notices.undp.org
.
Technical Approach (if needed): RFQs for well-defined services might not require a detailed approach narrative (that’s more typical in an RFP). However, you could include a few questions to ensure the vendor will meet requirements, such as “Confirm that you have capacity to start by X date and provide the resources as specified,” or “outline your approach to ensuring quality (max 1 page).” Keep it limited since an RFQ emphasizes price on a predefined scope.

Service Levels Compliance: Ask the supplier to explicitly agree to the SLA targets or note any exceptions. For example, a question like “Do you commit to meeting the service levels defined in the SLA attachment? If not, explain any deviations.” This helps flag if a supplier cannot meet a particular requirement.

Pricing Format: Often, an RFQ will include a pricing table template (or price schedule form) that the supplier must fill in (this can be part of the questionnaire or separate Excel attachment). This ensures all suppliers present their pricing in the same format (e.g. breakdown by labor rate, materials, fixed monthly fee, etc.). Standardizing the quote format makes evaluation much easier​ sievo.com .

A price model is the structure or method used to define how a supplier charges for goods or services. In professional sourcing, selecting a price model is a strategic decision that aligns with the nature of the procurement, the sourcing strategy, and the type of supplier relationship. Examples include fixed price, time and materials, cost-plus, unit pricing, subscription-based, and performance-based models. How a price is provided by the supplier is defined in the evaluation document.

Choosing the right price model helps the buyer compare supplier quotes fairly, manage risks, and align costs with value delivered. For example, a fixed-price model suits predictable deliverables, while time and materials work better for flexible, evolving projects. The chosen price model should be clearly stated in the Request for Quotation (RFQ) and reflected in the final contract, ensuring consistency from the bidding phase to contract execution. A well-defined price model brings transparency, drives supplier accountability, and simplifies cost control throughout the procurement lifecycle.

Other Compliance Statements: You might include checkboxes or confirmations for acceptance of terms, validity of the quote (e.g. “quote must be valid for 60 days”), and acknowledgment of any included contract terms.

Providing such a form or list with the RFQ is considered a best practice because “an efficient way to do this is to provide bidders with a template designed to elicit the complete information required in a format that allows for easy comparison” sievo.com. In other words, standardize the responses so you’re comparing apples to apples.

Evaluation Criteria: In the RFQ, it’s also wise to communicate how you will evaluate the quotations. This guides suppliers on what’s important (and discourages them from omitting critical info). Depending on the service and your strategy, the evaluation could be as simple as “lowest price meeting all requirements” or a weighted scoring of several factors (price, quality, experience, etc.). For example, public sector RFQs often state something like: “The lowest priced offer of those technically qualified will be selected.” In one UN RFQ for services, the method was “lowest priced offer of technically qualified/responsive quotation”​ procurement-notices.undp.org, meaning they first check if the quote meets the technical requirements (experience, etc.) and then choose the cheapest of those.

If you plan a weighted evaluation, you might say, for instance: “Quotes will be evaluated based on 40% price, 30% demonstrated capability/experience, 20% compliance with service requirements, and 10% financial stability.” Or if it’s purely price but with some minimum qualifications, state that clearly.
Including the evaluation process makes the bidding more transparent and can improve the quality of responses​ tipalti.com.

Suppliers will know, for example, if they need to put effort into describing their qualifications or if price is the dominant factor. If the RFQ is competition-driven (commodity service), you might emphasize that meeting the specs at the lowest cost is the goal. If it’s more complex, you emphasize best-value. An RFQ used by the U.S. GSA for janitorial services, for instance, “offered specific data about guidelines, scope, and requirements” and also “provided a clear process for evaluation so service providers knew what to expect.”​tipalti.com. You should strive to do the same: make sure your invited vendors know exactly how their quote will be assessed.

Tip: At minimum, ensure the RFQ tells vendors what to include in their quote (even if you don’t disclose the exact scoring). You can do this in bullet form in the invitation letter or in the questionnaire. For example: “Quotation submissions should include: (1) a cover letter on your letterhead, (2) the completed pricing table (Annex 2), (3) answers to the Supplier Questionnaire (Annex 3), and (4) a signed acceptance of our Terms and Conditions (Annex 4).” This corresponds to the components we’ve discussed and makes it easy for suppliers to follow. In fact, a government template might explicitly list the RFQ annexes and what they contain (Instructions, Specifications, Price Submission Form, Terms and Conditions)​ procurement-notices.undp.org.

General Terms and Conditions

Finally, an RFQ package for services typically includes the General Terms and Conditions (T&Cs) that will apply to the purchase order or contract resulting from the RFQ. These are the legal and commercial terms that your organization requires. They might cover payment terms, liabilities, confidentiality, termination rights, intellectual property ownership, compliance with laws, etc.
In many cases, standard terms are attached as an annex for the supplier to review. For example, a UNDP RFQ listed “Annexure 4 – General Terms and Conditions of the Contract” as part of the documents provided to bidders​ procurement-notices.undp.org.

By including T&Cs upfront, suppliers can factor in any contractual requirements into their quote (for instance, insurance requirements or payment net 60 days) and won’t be surprised later. It also allows them to flag any objections in their response if they have any (which you can negotiate if needed before award).
For the RFQ stage, you don’t necessarily expect the supplier to mark up or sign the T&Cs yet (unless you explicitly ask for acceptance). But you should ask them to confirm that they have read and agree to them as part of their quotation. A common approach is to include a statement in the questionnaire or in the cover letter requiring the bidder to acknowledge the T&Cs. In some sectors, if the supplier takes exception to any terms, you might require them to state so in their quote.
Including your general terms also reinforces how formal and binding the process is. It signals that if they win, these terms will govern the relationship. This is especially important for services, where things like liability for service failures or data security obligations need to be understood in advance.

Note: If your RFQ is for a complex or high-value service, you might also attach a draft contract or Master Service Agreement (MSA) in addition to general terms. However, for most standard purposes, the general terms and conditions (which might be part of a standard service contract) suffice to inform bidders of the contractual framework.

Now that we’ve covered the components of the RFQ package, let’s discuss an important aspect: aligning the RFQ’s content and tone with your sourcing strategy and the service’s importance. Not all services are sourced the same way – a lot depends on whether you view the supplier as a potential strategic partner or just one of many vendors competing on price. This is where procurement theory, like the Kraljic Matrix, comes into play.

Aligning the RFQ with Sourcing Strategy (and the Kraljic Matrix)

Every sourcing project is guided by a strategy. By Step 5, you should have a clear strategy (often informed by tools like the Kraljic Portfolio Matrix or a category strategy analysis and decided in step 3).

The RFQ documents should reflect that strategy in both content and tone. In practical terms, this means the way you draft the RFQ – and how you communicate with suppliers – will differ if you’re pursuing a partnership approach versus a competition-driven approach. The Kraljic Matrix classifies purchases (including services) into four categories based on supply risk and profit impact: Strategic, Leverage, Bottleneck, and Non-Critical (Routine). Each quadrant suggests a different sourcing approach​

Strategic Items/Services: High importance, high risk. These are crucial to the business and few suppliers can deliver them. Recommended approach: form close partnerships with the supplier. Kraljic suggests spending time building strong relationships because these suppliers “aren’t just vendors; they’re partners in your business and should be treated as such”​.

In an RFQ (or often an RFP) for a strategic service, the tone should be collaborative and respectful, with an emphasis on quality, long-term outlook, and mutual benefit. You might invite only a few trusted suppliers (or incumbents) and highlight that this could lead to a long-term contract or partnership. The RFQ letter might explicitly mention the importance of the service to your strategy and that you seek a supplier who will “partner with us to achieve excellence in…” whatever the service is. Even though it’s an RFQ, you might allow room for suppliers to propose innovative ideas or value-adds in addition to price. In evaluation, you’ll likely weigh capability and quality heavily, not just price.

Leverage Items/Services: High importance (or spend) but low supply risk. There are many possible suppliers, and you hold power as a buyer. Recommended approach: maximize competition to obtain the best price and terms​.

For leverage-category services, the RFQ can be more price-focused and the tone can be a bit more “businesslike” in emphasizing competition. You might send the RFQ to a larger number of bidders to pit them against each other for the best quote. The RFQ letter can be strictly formal and to-the-point about requirements and that the decision will favor the best value or lowest cost. According to Kraljic’s guidance, buyers should exploit their buying power with leverage items to negotiate better prices​.

This doesn’t mean being rude – still maintain professionalism – but you may signal that cost efficiency is a key criterion. For example, you might explicitly state that, all else being equal, cost competitiveness will determine the award.

Bottleneck Items/Services: Low value impact but high supply risk (few suppliers or tricky supply). The strategy here is to ensure supply and reduce risk, possibly by finding alternative solutions or holding safety stocks​.

In service terms, a bottleneck service might be a niche consultancy or a specialized maintenance service that isn’t hugely costly but only one or two providers exist. The RFQ approach in this case might be akin to strategic in that you want to secure a reliable supplier. You might include some partnership language (to keep the sole supplier cooperative) but also look for any opportunity to reduce dependence. Often, price is less of a focus; reliability and risk reduction are key. You would still issue an RFQ if you have at least two suppliers to ask, but the tone could be “we value a supplier who can assure continuity of service” and you may be flexible or accommodating in terms (since the supplier has more power here).

Non-Critical (Routine) Items/Services: Low risk, low value. These are simple, often transactional purchases. The strategy is to simplify and automate – minimize the effort on both sides because these are not worth heavy process costs​.

For routine services (say a small office cleaning contract, or a basic lawn-mowing service), the RFQ should be kept as straightforward as possible. The tone is short and direct, focusing on the necessary details without unnecessary formality. You might use a very brief RFQ form, or even use an electronic reverse auction if appropriate. The key is efficiency. In the RFQ letter, you might still be polite and formal, but everything is succinct. You might lean towards a simple “fill out this form with your price” approach.

Turnaround times are short, and you’re likely going to pick the lowest bid that meets the basic needs.
In practice, many services sourcing situations will fall somewhere on a spectrum between pure partnership and pure competition. For example, outsourced IT helpdesk support might be considered a strategic service for a mid-sized company because it directly affects operations and employee productivity (high importance, and if it’s complex, maybe moderate supply risk). Thus you’d treat it closer to strategic – inviting a handful of proven vendors, emphasizing quality and trust, possibly planning a multi-year contract. Conversely, something like janitorial services could be seen as leverage or non-critical (depending on spend volume). If it’s a large contract across many buildings, it might be leverage (high spend with many suppliers in market) – you’d run a very competitive RFQ, pushing for cost reductions. If it’s a single small office, it’s routine – you might just get three quotes quickly and go with the cheapest that meets requirements, with minimal negotiation.


Adjusting RFQ Tone and Content:

Reflect your strategy in the RFQ documents. Here are a few practical ways to do that:
Language in the Cover Letter: For strategic/partnership approaches, use language about partnership, collaboration, quality, and long-term. Example: “We are looking for a service provider who will become a long-term partner in delivering high-quality IT support to our organization.” Acknowledge the importance of their expertise. For competitive approaches, focus the language on clear requirements and the bidding process. Example: “Please submit your most competitive quotation for the defined services. Award will be based on meeting the requirements at the best overall cost.”

Requirements Flexibility: In a partnership scenario, you might be a bit more open to hearing the supplier’s proposed solution – even in an RFQ, you might include a question like “Please describe any value-added services or innovative approaches you could offer (this may be considered in the evaluation).” In a pure RFQ for a commodity service, you likely wouldn’t ask for that – you just specify and expect compliance.

Negotiation and Questions: With strategic items, you might anticipate rounds of negotiation or at least a discussion after quotes (because relationship is key). With leverage items, you may instead leverage the competition: for instance, you might not negotiate much but rather choose the best quote or use one supplier’s price to bargain with another (all within ethical bounds). You don’t necessarily state this in the RFQ, but it influences how you design the process timeline (e.g., you might include a presentation step or site visit for strategic items).

Timeline given to suppliers: A strategic or complex RFQ usually gets a longer response time (several weeks) to allow suppliers to craft a detailed proposal/quote. This signals that you expect them to put in effort and perhaps be creative. A routine service RFQ might have a short fuse (a week or even a few days) because it’s straightforward and you just need a price. This difference will be seen in our examples below.

Remember, the Kraljic Matrix principle is to apply different strategies to different categories. Research indicates that for strategic quadrant items, partnership and careful supplier management are key, whereas for leverage quadrant, competition and exploiting buying power drive value​

For example, “strategic items may require long-term contracts and strong supplier relationships, while leverage items might be best sourced through competitive bidding.”​. In your RFQ, this translates to a more relationship-oriented document in the first case vs. a price-focused competitive document in the second.

In summary, be mindful of the service’s role in your organization. A one-size-fits-all RFQ template may not always be optimal. Tailor the emphasis: if it’s a strategic service, take a bit more time to convey that you value quality and partnership (even though you still expect a keen price). If it’s a commodity service, keep it tight and let suppliers know that cost efficiency and meeting the basic specs are the winning factors. This alignment will not only get you better results but also signals to suppliers that you know what you’re doing – for instance, a strategic supplier will appreciate that you’re looking beyond price, and a commodity supplier will appreciate a quick, efficient bidding process.

Examples of RFQ Invitation Letters (Service Scenarios)

To illustrate how these principles come together, let’s look at three examples of RFQ invitation letters for services of varying complexity and strategic importance. Each example is written as a formal, professional letter, but note the differences in tone, content, and timeline. These letters serve as models that buyers-in-training can reference. (In a real situation, these would be on your company letterhead or email template, with appropriate references and addresses.)

Example 1: RFQ for a Routine Service (Office Cleaning) – short timeframe, simple scope, competition-focused.
Example 2: RFQ for a Mid-Range Service (Graphic Design Project) – moderate scope, medium timeframe, balanced focus on quality and price.
Example 3: RFQ for a Complex/Strategic Service (Outsourced IT Helpdesk) – complex scope, longer timeframe, partnership-oriented tone.

Example 1: RFQ Invitation Letter – Office Cleaning Services (Routine/Leverage Service)

[Your Company Letterhead or Address]

April 10, 2025

Attention: Sales Department  
CleanCo Maintenance Services Ltd.  
123 Industrial Park Way  
Hometown, State ZIP

Subject: Request for Quotation – Office Cleaning Services (RFQ #2025-OC1)

Dear Sir or Madam,

[Your Company Name] invites your firm to submit a quotation for **office cleaning services** at our headquarters location. We require a professional cleaning service for our 20,000 sq. ft. office facility, as detailed in the attached Statement of Work (Annex A). This RFQ is being issued to multiple qualified cleaning firms to ensure a competitive and fair sourcing process.

Scope of Services:
The contracted service will cover daily cleaning of workspaces, weekly deep cleaning of common areas, and monthly specialized tasks (windows, carpet shampooing). A full description of tasks and service standards is provided in Annex A – Statement of Work. Please review it carefully to understand our requirements and quality expectations (e.g., acceptable cleaning standards and supplies to be used).

Submission Requirements:
Please provide your fixed monthly price for the services, inclusive of all labor, equipment, and supplies. Use the Quotation Form (Annex B) to breakdown your pricing (e.g., monthly base fee, any per-visit charges). Along with pricing, complete the short Supplier Questionnaire in Annex C, which asks for your company profile, relevant experience (at least 3 references for similar office cleaning contracts), and confirmation of compliance with our terms.

Your quotation should be submitted via email to procurement@yourcompany.com no later than 5:00 PM on April 20, 2025. Please reference “RFQ #2025-OC1 – Cleaning Services” in the email subject line. Quotes received after the deadline may not be considered.

Evaluation:
Our decision will be based on best value, considering price, demonstrated experience, and ability to meet the schedule. We intend to award to one supplier for an initial one-year contract (starting May 1, 2025), with the option to extend for additional years. Note that while price is a major factor, the lowest price will not be selected if service quality or qualifications do not meet our requirements. All vendors must meet the minimum standards outlined in the SOW and agree to our general contract terms (Annex D).

Attached to this letter, you will find:  
- Annex A – Statement of Work (Office Cleaning Requirements)  
- Annex B – Quotation Pricing Form  
- Annex C – Supplier Questionnaire (including experience and staffing)  
- Annex D – General Terms and Conditions (Service Agreement Terms)

Questions & Contact: 
If you have any questions or need clarifications regarding this RFQ, please contact me at jane.doe@yourcompany.com by April 15, 2025. We will respond to all inquiries and circulate relevant Q&A to all invited bidders to ensure a fair process.

Thank you for your interest in partnering with us for our cleaning needs. We look forward to receiving your quotation.

Sincerely,

Jane Doe  
Sourcing Specialist  
Your Company Name

Why this example? This letter is brief and to the point, reflecting a relatively routine service. It clearly states the scope and uses a straightforward tone – it invites competition (mentioning multiple firms) and emphasizes the deadline and requirements. It still maintains professionalism and courtesy. Note that it lists attachments (SOW, forms, T&Cs) and gives a short window (10 days) to submit, which is typical for a simple service RFQ.

The evaluation section indicates that while price is key, the company will ensure minimum quality (so vendors don’t skimp on quality just to cut price). This approach is common for leverage/routine services – multiple bids and a quick decision based on price and basic qualifications.

Example 2: RFQ Invitation Letter – Graphic Design Services (Mid-Range Service)

[Your Company Letterhead]

April 10, 2025

Design Partners Agency  
456 Creative Ave. Suite 100  
Creativity City, State ZIP  
Attn: Creative Director

Subject: Request for Quotation – Graphic Design Services for Marketing Campaign

Dear Ms. Smith,

[Your Company Name] is seeking a qualified graphic design service provider for our upcoming marketing campaign, and we invite your firm to participate in this Request for Quotation (RFQ). We require design of a set of marketing materials (brochures, web graphics, and social media images) as described in the attached Service Description and Scope of Work (Annex 1).

Project Overview: 
Our campaign, “Launch 2025”, will roll out in June and July 2025. The selected design partner will be responsible for creating original artwork and layout for approximately: 1 corporate brochure (8 pages), 5 web banner graphics, and a suite of 10 social media post images. Annex 1 provides detailed specifications for each item (dimensions, format, content guidelines) and our brand style requirements. The work is expected to take place between May 1 and June 15, 2025, including draft revisions and final approvals.

What to Include in Your Quote:
Please include a project fee or rate quote, broken down by deliverable or an overall package price. Indicate if pricing is time-based or deliverable-based, and any assumptions (e.g., number of revision rounds included). We have provided a Pricing Table in Annex 2 for consistency – you may fill that out or provide your own formatted quote covering the same information. 

In addition, kindly provide: (a) Company Background & Experience – a brief overview and 2-3 examples of similar design projects completed (with client references or portfolio links if available); (b) Key Personnel – names and roles of the designer(s) or team that would work on our project, including any notable qualifications; and (c) Timeline Confirmation – a statement that you can meet the timeline or any adjustments you propose to the schedule.

Attachments:
Along with this letter, the following documents are attached to form the RFQ package:
- Annex 1 – Scope of Work & Service Requirements (Graphic Design Project Details)  
- Annex 2 – Pricing Response Template  
- Annex 3 – Draft Contract Terms and Conditions (including IP rights and delivery terms)  

Please review all annexes carefully. Notably, Annex 3 contains key terms we will include in the contract (for example, ownership of design deliverables will transfer to [Your Company] upon payment, and confidentiality clauses regarding our marketing information).

Submission Details: 
Submit your quotation and the requested information by April 30, 2025. Responses should be emailed to marketingprocurement@yourcompany.com. Ensure the subject line reads “Design Services RFQ – [Your Agency Name]”. Your quote document should be in PDF format and include your signed cover letter on company letterhead. If your portfolio examples are online, you may simply include hyperlinks.

Evaluation Criteria: 
We will evaluate quotes based on creativity and quality (portfolio & experience – 40%), ability to meet requirements/timeframe (20%), and cost competitiveness (40%). While this is an RFQ (focused on pricing for a defined scope), the creative quality is very important to us; thus, we are taking a best-value approach. We may follow up with an interview or request a sketch sample from top contenders (if necessary) before final award. Please note that cost is a significant factor, but we will not automatically select the lowest bid if it does not convincingly demonstrate the capability to deliver the level of quality we need.

Timeline & Next Steps:
- RFQ Issue Date: April 10, 2025  
- RFQ Questions Deadline: April 20, 2025 (please send any questions to the email above; responses will be provided within 2 days)  
- Quotation Submission Deadline: April 30, 2025  
- Expected Award Notification: by May 5, 2025  
- Project Kick-off Meeting with selected provider: May 6, 2025 (tentative)

We appreciate your time and effort in preparing a quotation. This project is important to us, and we look forward to seeing your creative credentials and competitive offer. **Thank you** for your interest in working with [Your Company Name].

Sincerely,

John Doe  
Marketing Procurement Manager  
Your Company Name

About this example: This RFQ letter is for a mid-level creative service, so it blends a formal RFQ structure with an emphasis on qualitative factors. The tone remains professional and courteous, but it explicitly states that quality/portfolio will be weighed alongside price. You can see the letter is a bit longer – it provides more context (so the designers understand the campaign), and it outlines a timeline of the RFQ process (questions deadline, etc.), which is often done in more involved sourcing projects. It also references a draft contract including IP rights; this is important in creative services to clarify ownership of work.

The timeframe given is about 3 weeks to respond, which is reasonable for a moderate complexity project. The letter invites questions and even mentions a possible interview or sample request, indicating a partnership/quality mindset. This example shows how an RFQ for services can still be transactional (we want a quote for defined deliverables) while incorporating some aspects of an RFP (consideration of quality, discussion of next steps) because service outcomes can be subjective. It’s a balanced approach appropriate for a leverage or bottleneck type service that is important but where you still expect competition and want the best value.


Example 3: RFQ Invitation Letter – Outsourced IT Helpdesk Support (Strategic Service)

[On Company Letterhead]

April 10, 2025

CEO, TechSupport Solutions Inc.  
789 Enterprise Drive  
Tech City, State ZIP

Subject: Invitation to Quote – IT Helpdesk Support Services (RFQ #2025-ITHD)

Dear Mr. Johnson,

After a preliminary qualification stage, [Your Company Name] is pleased to invite TechSupport Solutions Inc. to submit a formal quotation for Outsourced IT Helpdesk Support Services. This service is a critical part of our operations, and we are seeking a long-term partner to ensure high-quality IT support for our organization. Your company’s strong credentials in IT support services have qualified you for this RFQ, and we look forward to your participation.

Background:
[Your Company Name] currently has approximately 300 employees and a suite of IT systems (Windows and macOS environments) that require continuous support. We are transitioning from an in-house IT helpdesk to an outsourced model. Our goal is to engage a vendor who can provide 24/7 support, maintain our IT infrastructure uptime, and enhance our user satisfaction. The contract is expected to be a 3-year agreement (with an option to extend), starting July 1, 2025.

Requirements: 
Attached you will find a detailed Statement of Work (Annex A) and Service Level Agreement (Annex B) defining the requirements for the IT Helpdesk Support service. In summary, the vendor will be responsible for: 
- Providing Level 1 and Level 2 helpdesk support to all employees (phone, email, and on-site for hardware issues).
- Meeting or exceeding the service levels outlined (e.g., 24x7 availability, 1-hour response time for high-priority tickets, 99% monthly uptime for critical systems as detailed in Annex B).
- Proactively maintaining and updating systems per the schedule in the SOW (monthly patches, security updates, etc.).
- Reporting and governance, including monthly performance reports and quarterly service review meetings.

Please review Annex B carefully, as it lists key performance indicators and penalties for SLA breaches (for example, credits for not meeting response times). We encourage you to include any comments or suggestions on these service levels in your proposal, drawing on your expertise to possibly improve service outcomes.

Submission Guidelines: 
Given the complexity of this service, we are not only requesting a price quotation, but also a brief service proposal to accompany your pricing. 

Specifically, your RFQ response should include:
1. Pricing – Use the Pricing Worksheet (Annex C) to provide your pricing structure. We are requesting a fixed monthly fee for the base service (covering up to a certain number of tickets per month), plus rates for any additional tickets or on-site support beyond the base scope. Include any one-time transition/setup fees if applicable.
2. Service Proposal – A document (max 10 pages) detailing how you will deliver the service. This should cover your team structure, location(s) of support center, escalation process, and any value-added services or tools you will use to enhance support. Emphasis can be on how you will meet the SLAs – e.g., your approach to achieving the 1-hour response and maintaining 99% uptime. We are interested in understanding how you ensure quality (certified staff, ITIL processes, etc.) and how you handle continuous improvement.
3. Supplier Questionnaire – Annex D contains specific questions and information requests (some of which may overlap with your proposal). Please fill this out for completeness. It includes providing 3 client references, confirmation of your ability to meet each SLA metric (or noting any exceptions), and key personnel resumes (you may attach resumes of the proposed account manager and lead engineers).

Timeline: 
We understand that preparing a comprehensive response takes time. The schedule for this RFQ is as follows:
- RFQ Release: April 10, 2025  
- Deadline for Intent to Respond: April 17, 2025. Please email us by this date to confirm whether you will submit a quotation.  
- Question Submission Deadline: April 24, 2025. We will compile all Q&A in a document by April 27 and share with all participants. We also plan to hold a Q&A Conference Call on April 25 at 10:00 AM for interactive questions (details will be sent to confirmed participants).  
- Quotation Submission Deadline: May 10, 2025 by 5:00 PM.  
- Presentations (Tentative): Week of May 20, 2025. Shortlisted suppliers may be invited to present their proposals and discuss details.  
- Anticipated Award Decision: by May 31, 2025, with contracting to follow in June.

Please submit your quotation and proposal via our procurement portal (login details have been provided to you separately). In the portal, you will find an entry for “RFQ #2025-ITHD” where you can upload your documents securely. Ensure that your pricing (Annex C) is uploaded as a separate file labeled “Pricing” to facilitate our evaluation committee’s process.

Evaluation: 
Our evaluation will consider multiple factors:
- Service Capability & Quality (40%) – assessed through your service proposal, experience, and ability to meet/exceed the SLA requirements.
- Total Cost of Service (30%) – evaluated on the competitiveness and transparency of your pricing for the 3-year period.
- Transition Plan & Implementation (15%) – how you plan to onboard/take over from our current setup with minimal disruption.
- Supplier Stability and References (15%) – your track record with similar clients and the feedback from references.

As this service is vital to us, we are focused on selecting a provider that offers the best value and reliability, not merely the lowest price. We may engage in negotiations after reviewing the quotations to clarify details or improve value. The contents of your offer may form part of the final agreement, so please ensure accuracy and completeness.

Terms and Conditions:
Annex E contains our standard Master Services Agreement terms. By submitting a proposal, we expect that your firm agrees to these terms or will explicitly state any exceptions. Key points include liability limits, data protection requirements (important given access to our systems), and termination clauses. We are open to discuss terms as part of the negotiation, but fundamental requirements such as confidentiality and service continuity must be accepted.

We appreciate your effort in this RFQ process. TechSupport Solutions Inc. is a strong candidate for this partnership, and we look forward to understanding how your service can help [Your Company Name] achieve operational excellence in IT support. If you have any questions, please do not hesitate to contact our IT Procurement Lead, Alice Wong, at awong@yourcompany.com. 

Thank you for your participation. 

Sincerely,

Michael Lee  
Director of Procurement  
Your Company Name

Discussion: This example is clearly more extensive, fitting a strategic service RFQ. The letter is longer and very detailed – reflecting the complexity and importance of the IT support service. It addresses the supplier almost as a partner: note phrases like “long-term partner,” “we are interested in understanding how…,” and a willingness to accept suggestions on the SLA. It also explicitly states a multi-factor evaluation where cost is 30%, lower than the 40% for quality – a strong indicator that this is not just a price shoot-out. The tone is formal, respectful, and thorough. The letter invites a lot more from the supplier (essentially a mini-proposal along with the quote), which is somewhat hybridizing an RFQ with an RFP, but this can be appropriate for complex services even under the RFQ label.

The timeline is generous (a month to submit) and includes an interactive Q&A session and possibly presentations – all signals of a collaborative, high-stakes sourcing process. This aligns with a strategic/Kraljic approach where the buyer is investing more time to vet and select the right partner.

As a buyer-in-training, comparing these three examples shows how you flex the RFQ format:

  • The cleaning services letter was tight and price-driven, no frills.
  • The design services letter balanced price with creative quality, moderately detailed.
  • The IT support letter was highly detailed, partnership-focused, and looked almost like an RFP, demonstrating that even in an RFQ stage, complex services require rich communication.

You can use these examples as templates according to the scenario you face.

RFQ Invitation Letter Template (Reusable Model)

Finally, here is a general RFQ invitation letter template for services, which you can adapt for various situations. This template provides a structured outline with placeholders that you should replace with your specific information:

[Your Company Name or Letterhead]  
[Your Company Address]  

[Date]

[Supplier Contact Name]  
[Supplier Company Name]  
[Supplier Address]

Subject: Request for Quotation – [Service Name] [RFQ Reference No.]

Dear [Mr./Ms. Supplier Last Name or Sir/Madam],

[Your Company Name] invites you to submit a quotation for [service name] as described in the attached Statement of Work. We are seeking a service provider to [brief summary of what the service entails]. This RFQ is part of our sourcing process to identify the supplier that offers the best value solution for these services.

Background/Context: 
(Optional – include if the suppliers need context)  
[Provide a brief background of your company or the project. For example: “Our company is expanding and looking to outsource XYZ service to improve efficiency. We have an existing contract expiring and this RFQ will inform our next partnership.” Keep it to 2-3 sentences.]

Scope of Work:  
Attached as Annex 1 – Statement of Work (SOW) is a detailed description of the required services, including scope, tasks, deliverables, and timelines. In summary, the provider will be expected to:  
- [Bullet 1 of key task or requirement]  
- [Bullet 2 of another important task/deliverable]  
- [Bullet 3 … and so on]  
Please refer to Annex 1 for complete specifications and requirements.

Service Level Agreement (SLA) Requirements:
(If applicable) 
We have defined certain performance standards for this service in Annex 2 – Service Level Agreement Terms. These include metrics such as [e.g., uptime %, response times, quality levels] and corresponding remedies if those service levels are not met. Your quotation should confirm ability to meet these standards. If you foresee any difficulty with any SLA term, kindly note that in your response.

Response Contents: 
Suppliers should submit the following information:  
1. Pricing Proposal: A detailed quotation using the format provided in Annex 3 – Pricing Form. Include all relevant costs (e.g., labor, materials, travel) and validity of the quote (e.g., “valid for 90 days”).  
2. Supplier Information & Qualifications: Please complete Annex 4 – Supplier Questionnaire, which requests information on your company background, relevant experience, references, and other qualifications. You may attach supporting documents as needed (e.g., past project summaries, certifications).  
3. (Optional, if needed) Technical/Service Approach: A brief description of how you plan to deliver the service or any notable aspects of your offer. (For straightforward services, this may not be required, but for more complex services you can ask for a short proposal section.)

All quotations must be in [specified currency] and exclude/include any taxes as appropriate (please specify). The financial proposal should be submitted in the format given to enable comparison.

Submission Method and Deadline: 
Please submit your quote in electronic format via email to [submission email] by [deadline date and time]. The subject line of your email should read “[RFQ Reference]: [Your Company Name] [Service Name] Quote – [Supplier Name]”. If your submission exceeds email size limits or if a special format is required, please contact us to arrange an alternative (e.g., secure upload link). **Late submissions** may not be considered, so we kindly request that you plan accordingly to meet the deadline.

Evaluation and Award: 
[Your Company Name] will evaluate the quotations based on [list the main criteria]. For example: “The evaluation will consider compliance with the SOW and SLA requirements, the supplier’s experience and qualifications, and the total cost of the service.” We reserve the right to clarify or negotiate details once all quotes are reviewed. The contract will be awarded to the supplier that provides the best overall value and capability to meet our needs. Please note that the lowest-priced quote may not necessarily be selected if other factors outweigh the price advantage. Conversely, we will not consider any quote that does not fulfill the critical requirements of the SOW/SLA.

Terms and Conditions:  
Please find Annex 5 – General Terms and Conditions which will govern the resulting contract. Your participation in this RFQ indicates acceptance of these terms, unless exceptions are noted in your response. [If applicable, mention: “Any significant exceptions to the terms may affect the evaluation of your proposal.”]

Timeline: 
(Optional – include key dates if relevant)
RFQ Issuance: [date]  
Deadline for Questions: [date, if you allow Q&A]  
Quotation Deadline: [date and time]  
Expected Award Decision: [date]  
Project Commencement: [date, if known]

All communication regarding this RFQ should be directed to [Contact Person Name, Title] at [email and/or phone]. Do not contact other company employees regarding this RFQ to ensure fairness in the process.

Thank you for your interest in this opportunity. We look forward to receiving your quotation.

Sincerely,

[Your Name]  
[Your Title]  
[Your Company Name]

How to use this template: Replace the placeholders (in brackets or the sections in italics) with your specific details. You can trim or expand sections based on the complexity of the service. For a very simple service, you might shorten the background and not require a technical approach section. For a very complex one, you might add more annexes (e.g., a draft contract). Ensure the annex numbering and references align with what you include. The template is structured to be clear and logically ordered, covering all the key points a supplier needs to know.

Remember: Always double-check that the tone of the letter matches how you want to engage suppliers. This template is written in a fairly neutral-professional tone. If you’re aiming for a partnership vibe, you might insert language like “long-term partner” or emphasize quality; if it’s a pure bid, you might tighten the language to be more brief. Also verify that dates and email addresses are correct before sending out.

Conclusion

Preparing an RFQ package for services is a vital step that bridges your sourcing strategy with the practical solicitation of quotes. By including a well-crafted cover letter, a detailed SOW, clear SLA expectations, a structured supplier response form, and the necessary terms and conditions, you set the stage for suppliers to respond effectively and for you to make an informed selection. This stage should not be rushed or treated as a simple administrative task – it requires careful thought to ensure all requirements are communicated and the tone is set correctly.

We’ve seen how an RFQ for a routine service might differ from one for a strategic service. Academic procurement theory (like Kraljic’s model) and industry best practices both remind us that one size does not fit all in sourcing. The content and tone of your RFQ should reflect whether you’re leveraging competition or building a partnership​. By doing so, you not only get better bids but also start the supplier relationship off on the right foot.

For students and new procurement professionals, the examples and template provided here offer a hands-on guide to crafting your own RFQ documents. Feel free to reuse the structures – for instance, use the template as a starting point in a classroom simulation, or adapt one of the sample letters to a real project you’re working on (just remember to change all the specifics!). The more you practice developing RFQ packages, the more confident you’ll become in communicating with suppliers and managing the process.

About Learn How to Source

Learn How to Source (LHTS) is an online platform based in Sweden, offering a range of procurement courses accessible globally. It serves as a community where procurement experts share their knowledge through online courses, designed for various experience levels from introductory to expert. Courses are concise, about 30 minutes each, and cover different aspects of procurement, tailored for different buyer roles. The courses focus on practical knowledge, presented by seasoned professionals, and includes quizzes and certificates. They can be accessed from any device, emphasizing micro learning for flexibility and efficiency.

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