Sealed Bidding and Competitive Proposals: A Comparative Analysis

695 WordsFeb 3, 20183 Pages
Compare and contrast sealed bidding and competitive proposals Sealed bidding is a form of reviewing contracts in which the bid is literally 'sealed' and "submitted in response to invitation-to-bid (ITB). Sealed bids received up to the deadline date are generally opened at a stated time and place (usually in the presence of anyone who may wish to be present) and evaluated for award of a contract" (What is a sealed bid, 2012, Business Dictionary). Although the bids are sealed prior to being opened at the designated date, afterwards all "interested parties" can review the bids, although "they don't have access to the bidders' financial data and other proprietary information. The contract is awarded to the company with the lowest bid" under most circumstances (What Sealed bids vs. proposals: How they compare, 2012, ONVIA). Of course, the reliability of the contractor and the feasibility of the lowest bid must first be evaluated before the contract is extended. The bid must fulfill the stipulations of the original IFB. The past history of the company will also be gauged. "They gauge a bidder's level of responsibility based on the company's means to fulfill all the contract requirements" (Sealed bids vs. proposals: How they compare, 2012, ONVIA). In general, when a call for sealed bids is put forth, an agency is looking for the lowest price to procure a particular (high-cost item) item "with easily definable characteristics" (Sealed bids vs. proposals: How they compare, 2012,
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