What Is Sealed Bidding?
A sealed bid is a way to ensure that the process of selecting a company for contract work will be a fair and open competition. A bidder can provide all relevant information about themselves or just leave it vague so there is no opportunity for outside influence in the decision.
The bidding process is meant to ensure that the Government gets only one offer for each item on their procurement list. This means any discussions between bidders and adverse parties are not allowed, as well as anything related such as price discounts.
Below are the elements of a sealed bid process:
The Preparation Before The Invitation For Bids
All the requirements and specifications that are important for the Government request must be described clearly, concisely, and completely. This is necessary so that the bidders understand what is being asked. There must not be any overly restrictive requirement that severely limits the number of bidders to choose from.
Publicly Announcing The Invitation For Bids
It is essential to publicize the invitation for bids through distributions and public announcements. This is not only to save time but also to ensure that all prospective vendors are aware of what is made available. They need to have an adequate opportunity before submitting their own offers so they can prepare themselves.
The Submission Of Sealed Bids
Interested vendors must submit sealed bids. These bids will only be publicly opened at the determined time and place.
The Evaluation Of The Sealed Bids
The submitted vendor bids will be publicly opened and reviewed without discussion.
The Contract Is Awarded
The Government is looking for a contractor to provide certain goods or services. After bids are publicly opened, an award will be made with reasonable promptness to that vendor whose bid conforms according to the invitation. The Government will consider what bid is the most advantageous and at what price and any price-related concerns.