What an RFQ is
A Request for Quotation (RFQ) is a government buyer asking several suppliers to price a specific need: 20 office chairs, a day of catering, a fence repair. Each supplier sends a written price. The buyer compares them and appoints one, usually by issuing an official order.
RFQs are faster than full tenders. Many close within a week or two and the paperwork is lighter, which makes them a practical way for businesses of every size to start supplying government.
The value limits
Government has to follow set value limits when it buys. For national and provincial departments and their entities, National Treasury's PFMA SCM Instruction No. 02 of 2021/22 sets the limits:
| Estimated value | How the buyer usually buys |
|---|---|
| Under R2,000 | Petty cash, no formal quotation process |
| R2,000 to R1,000,000 | Written price quotations (RFQs) |
| Above R1,000,000 | Competitive bidding (a tender) |
Municipalities follow the Municipal Supply Chain Management Regulations, which set their own quotation limits. Any municipal quotation above R30,000 must be advertised for at least 7 days on the municipality's website and official notice board.
Who issues RFQs
- National departments and their regional offices
- Provincial departments, including schools, clinics and district offices
- Municipalities: metros, local and district municipalities
- State entities: public entities, agencies and state-owned companies
RFQs.co.za lists government buyers only. We don't list private-sector work.
How quotations are scored
Most government quotations are scored on the 80/20 preference point system: up to 80 points for price and up to 20 points for the specific goals the buyer sets out in the RFQ. The lowest acceptable price gets the full 80 price points.
Read which specific goals apply to each RFQ and attach the proof it asks for. Points you don't claim are points you don't get.
What you need before you quote
- Active registration on the Central Supplier Database (CSD)
- A tax-compliant status with SARS, which buyers check through the CSD
- Any industry registration the work needs, such as CIDB for construction or PSIRA for security
- A simple quotation template, a company letterhead, and a way to sign and scan documents
This is general guidance, not legal advice. Every RFQ has its own conditions, and the RFQ document always wins.