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Invitation to bid

bidding document

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bizuneh nigusse
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18 views2 pages

Invitation to bid

bidding document

Uploaded by

bizuneh nigusse
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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Invitation to bid

is a call for contractors to submit a proposal for a specific product or service that an organization knows
it wants/needs.

An invitation to bid, also called an invitation for bid or sealed bid, is a call to contractors to submit a
proposal on a project for a specific product or service.

WHAT IS AN INVITATION TO BID?

An invitation to bid is a call by clients to contractors to provide specific products or services that meet
product specifications. The idea behind an invitation to bid is to give all interested bidders standardized
information about the project scope, duration, required warranties, service standards, and minimum
qualifications. This information makes the bidding process fair and truly competitive.

WHEN ARE INVITATIONS TO BID USED?

There are several instances where it might be plausible to use an invitation to bid. Specific industries
such as government organizations and academic institutions use invitations to bid more than other
industries. This promotes high levels of transparency and helps curb corruption and favoritism.

Clients mostly use invitations to bid on predictable projects to clearly understand the processes and
requirements necessary to complete the project. Some clients may also use an invitation to bid in cases
where there is no significant difference in the varying products and services offered by the contractors,
and the price ends up being the most critical evaluation criteria in such instances.

Unlike a Request for Proposal, the contractor does not offer additional solutions to the client's
procurement and management processes. With this in mind, the contractor should understand the
client's requirements and follow through with them instead of introducing new concepts. The contractor
must know what exactly is expected of them.

Invitations to bid mostly end up in fixed-price contracts. Contractors are pressured to bid as low as
possible, but it is essential to understand that underbidding might make it hard to cover your operating
costs. An unreasonably low bid might also make it difficult for a contractor to follow all the contract
requirements. As much as low prices can help you win bids, it would help if you were transparent about
your expenses with the party offering the request.
Invitation for bids means a written or published solicitation issued by an authorized procurement officer
for bids to contract for the procurement or disposal of stated supplies, services, information technology,
or construction, which will ordinarily result in the award of the contract to the responsible bidder
making the lowest responsive bid.

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