How is a Quote defined in procurement?

In procurement, a quote is formally defined as a request for pricing when costs fall below the established bid threshold. This definition aligns with the procedures typically observed in public procurement, where entities are often required to solicit quotes for purchases that are below a specified monetary limit.

When procurement officials need to acquire goods or services at a lower price point, they utilize quotes as a means of obtaining competitive pricing from multiple suppliers. This ensures that the purchasing process remains transparent and that the entity receives the best value for its expenditures without requiring a more rigorous bidding process, which is often mandated for larger contracts.

In this context, the other options do not accurately represent the formal definition of a quote in procurement. A request for the lowest possible cost, while related, is too informal and does not capture the structured nature of a quote. Similarly, a commitment to purchase a certain quantity of goods or a detailed contract proposal does not reflect the essence of a quote, which serves primarily as a preliminary pricing request rather than a binding agreement or comprehensive contract.