Purpose of Quotations
Quotations are a necessary part of the procurement function for several reasons. First, quotations ensure that we are getting the best value for our money. A formal quotation is documented proof that demonstrates fiscal responsibility. A vendor's job is to get as much margin on their sale as possible. If a vendor knows that there is competition for their goods or services, they tend to be more competitive. Secondly, quotations provide a fair forum for outside vendors to participate in university commerce.
Request for Quotation (RFQ)
A request for quotation should include a clear description with specifications and required delivery dates. Be open to alternatives and avoid asking for quotes for only one brand or part number. If you must request quotes for a specific part, the RFQ should state "this part or equal". Be consistent by sending all bidders the same information. Changes in your quotation request should be communicated to all bidders.
Evaluation of Quotations
Primary evaluation criteria includes total cost and availability of goods. Total cost should include the cost of the goods, freight, quantity or educational discounts, warranties, guaranties, and payment discounts. Make sure that you have the ability to return an item if it does not meet your requirements. Availability of goods is simply the vendor's ability to meet your delivery requirements.