Quotation Process

What are the quotation purchasing steps?

Quotation process is determined

Request for Quotation is prepared

Quotations are invited

Suppliers respond

Evaluation and selection

Notification and debriefing

Contracts established and managed

What are the quotation purchasing steps?

Once it has been determined that a purchase is required and the funding has been approved, the seven main steps in the quotation purchasing process are:

Quotation process is determined

The value of the purchase and its business category, determines whether a verbal or written quotation process is used. To review how this decision is made refer to How Purchasing Works.

The quotation process is not used for Roads or Bridges projects.

Even though the government buyer may verbally request you to quote, they will usually expect a written response, but this depends on the dollar value.

For purchases or works projects valued at more than $100 000, a written Request for Quotation (RFQ) will be provided. A written quotation response is always required in such cases.

Request for Quotation is prepared

The government buyer preparing a written RFQ will develop documentation that outlines what is required and how you should respond. 

The style of document used, and the amount of detail provided, will be determined by the value of the good/service or works required. 

The documentation may include:

• Conditions of quotation, including information on:

• the closing time, date and place of lodgement;
• the Conditions for Participation (mandatory requirements);
• the evaluation criteria;
• any applicable government policies;
• the point in the purchasing cycle when a debriefing interview will be available; and
• guidance on the formal purchasing complaint process.

• A specification describing the product, service or works required. This specification should be clear, accurate and complete.
• Conditions of Contract.
• Quotation Response Schedules.

See Understanding the Quotation Documentation for further information.

Quotations are invited

Invitations to quote do not need to be advertised. To ensure that you are invited to quote, make sure that the government buyer is aware of your business. For marketing tips, see How to Get Known.

Suppliers respond

Before responding, you should first obtain any available documentation from the purchaser. For simple purchases or projects there may be no documentation. You should then:

1. clarify any uncertainties;
2. prepare your response; and
3. submit your response in the right format, on time and at the right location.

To find out more go to Planning your Quotation Response.

Evaluation and selection

Your offer will be evaluated against the Conditions for Participation (mandatory requirements) and the evaluation criteria specified in the Request for Quotation documentation. The Conditions for Participation are assessed as either being "met" or "not met" during the first stage of the evaluation process. If your offer does not meet the Conditions for Participation, it will be eliminated from further consideration.

If a verbal quotation process is being used, your quotation will be assessed on how well it meets the requirements and whether it offers value for money.

Notification and debriefing

When a contract has been awarded, the successful bidder will be advised either verbally or in writing of the outcome. Advice on the outcome and a debriefing is available for unsuccessful bidders.

Contract established and managed

Depending on the value and complexity of the purchase and its business category, an offer may be accepted by using a letter of acceptance or by issuing a Purchase Order. Sometimes a formal agreement may be required if the purchase is complex. For information on the Standard Conditions of Contract, which may be used in these circumstances, see Establishing the Contract.

Payment will be made at the completion of the contract or as outlined in the payment schedule in the Request for Quotation documentation.

Want to know more about quotes and the processes involved? See How to Quote.