Hello Susan:

Softrak has a module that does exactly what you have described. It is called SalesCQ. The name comes from the fact that it combines 2 functions: (C)ontact Management and (Q)uotes. You can issues a Quote either to an existing Customer or to a Lead/Contact. The Quote can be emailed. If the Quote is accepted, you simply turn it into an Order.

You will find more information here: SalesCQ

And by the way, the Contact Management component is very useful for the Customer Service and Collections departments.