A closed competitive bidding process refers to a procurement method where a limited number of pre-qualified suppliers are invited to submit their bids for a specific project or contract. The process typically involves a formal invitation, detailed specifications, and evaluation criteria. The purpose of closed competitive bidding is to ensure fairness, transparency, and competition among the selected suppliers, ultimately leading to the selection of the most suitable and cost-effective bidder.
Closed competitive bidding is a procurement method in which a limited number of pre-qualified suppliers are invited to submit sealed bids for a specific project or contract.
In closed competitive bidding, only a select group of suppliers are invited to participate, whereas in open competitive bidding, any interested supplier can submit a bid.
The entity issuing the bid, such as a government agency or private organisation, determines the suppliers that meet the pre-qualification criteria and are invited to participate.
Closed competitive bidding allows for a more focused and efficient procurement process, as only pre-qualified suppliers are invited. It also promotes competition among a select group of suppliers, potentially leading to better quality and pricing.
One potential disadvantage is that it limits the number of suppliers who can participate, which may reduce the overall competition and potentially limit the options available. It can also be seen as less transparent compared to open competitive bidding.
Suppliers typically need to meet certain criteria, such as having relevant experience, financial stability, and necessary certifications. They may need to submit an application and undergo a qualification process to be considered for future bidding opportunities.
Yes, closed competitive bidding must adhere to applicable laws and regulations governing procurement practices. These may include requirements for transparency, fairness, equal opportunity, and anti-corruption measures.
No, the entity must still evaluate the bids received based on the specified evaluation criteria and select the most advantageous bid. They cannot award the contract arbitrarily or based on personal preferences.
Closed competitive bidding is commonly used for complex or specialized projects where a limited number of suppliers possess the necessary expertise. However, it may not be suitable for all procurement needs, and other methods, such as open competitive bidding or direct negotiations, may be more appropriate in certain situations.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 5th April 2024.
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