XL EagleQuote (Quote (Vendor Quote vs. Bid))
Quote stands for Quote (Vendor Quote vs. Bid). A quote is a price statement you give to a buyer. In federal contracting, a quotation in response to an RFQ is not an offer, so the government cannot accept it to form a contract. It issues an order instead, and you accept by agreeing or starting work.
A bid is different. It is a firm offer submitted in response to an Invitation for Bids, and it can be accepted to form a contract. A vendor quote, in everyday business, can also mean a supplier or subcontractor price given to a prime contractor.
Why it matters to a small contractor
The words matter. If you are quoting the government, know that you can usually revise before an order is placed. If you are bidding an IFB, your price is locked once bids open. If you are giving a vendor quote to a prime, state what is included, what is excluded and how long your price is good.
Example
A supplier gives a prime contractor a vendor quote for 50 LED light fixtures, good for 30 days and excluding installation. The prime uses it to quote the government, which issues a purchase order based on the prime's quote.
Quote: common questions
Is a quote binding?
A federal quote in response to an RFQ is not an offer. A commercial vendor quote's effect depends on its terms, so state your validity period and conditions clearly.
What is the difference between a quote and a proposal?
A quote is usually a price on a simple requirement. A proposal is a fuller response to an RFP with technical, past performance and price parts.
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