Contract and procurement fraud
Competitive Bidding Using Sealed Bids
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- Contracting by Negotiation
| Competitive Bidding Using Sealed Bids
Competitive bidding processes involving sealed bids is a method of procurement that employs competitive, sealed bids, containing price and terms, from prospective contractors to a procurement entity who awards the contract to the bidder with the best price. This method of procurement is designed to place all bidders on a plane of equality, requiring prospective contractors to bid on the same terms and conditions. A procuring entity typically uses sealed bidding when the following conditions are present: The entity’s requirements are clear, accurate, and complete. The dollar value of the purchase is large enough to justify the resources needed to conduct a sealed bid. There is enough time to solicit, obtain submissions, and evaluate the bids. The contract award will be made on the basis of price. It is not necessary to have discussions with the responding bidders. There is a reasonable expectation that the procuring entity will receive more than one sealed bid. This type of competitive bidding process uses a solicitation document called an invitation for bid (IFB), which typically contains a purchase description, the conditions for purchase, all contractual terms, and the deadlines for submitting bids. IFBs are publicly solicited. This process reduces the opportunity for procurement fraud. Contracting by Negotiation An organisation might obtain goods or services through contracting by negotiation. There are two main methods of contracting by negotiation: Competitive negotiation using a request for proposals (RFPs) or a request for quotations (RFQs) Sole-source contracting Download 0.62 Mb. Share with your friends:
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