Competitive Bid - Explained
What is a Competitive Bid?
Written by J. Mance Gordon
Updated at April 21st, 2024
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What is a Competitive Bid?
Competitive bids refer to prices that a vendor, supplier, or service provider quotes to a firm for its goods or services.
When a firm needs a large volume of goods or is seeking professional services, it may send out an offer or an appeal in the form of a request for proposal (RFP). Requests for proposal are commonly used in construction projects, technology projects, infrastructural programs and projects, pension fund management, and other business related activities. As part of the RFP, the applicant company will provide its best price at which it can provide or procure what is outlined in the RFP.