competitive bidding



Transparent' procurement method in which bids from competing contractors, suppliers, or vendors are invited by openly advertising the scope, specifications, and terms and conditions of the proposed contract as well as the criteria by which the bids will be evaluated. Competitive bidding aims at obtaining goods and services at the lowest prices by stimulating competition, and by preventing favoritism. In (1) open competitive bidding (also called open bidding), the sealed bids are opened in full view of all who may wish to witness the bid opening; in (2) closed competitive bidding (also called closed bidding), the sealed bids are opened in presence only of authorized personnel.
See also competitive negotiation.

Use competitive bidding in a sentence

  • There was a lot of competitive bidding going on and people were really trying to get the better end of the deal.

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  • During a round of competitive bidding, the ACME corporation was able to secure the contract as the lowest bidder, now the question was whether or not they could deliver on such a low price point.

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  • The government uses competitive bidding to get what they want, how they want it for the price that they want, while letting the people who are competing for the business think they have a fair chance.

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