Definition
A bid is a legal document in which a seller agrees to provide goods and/or services to a potential buyer at a specific price under specified conditions.
Bidding is an invitation to potential suppliers to submit their offers and a price for a particular opportunity.
Competitive bidding is the practice of competition in which firms submit offers or bids that detail the services and product specifications to be offered at a stated price.
A closed bid or sealed bid is formal, written and sealed. Normally all closed bids are opened and reviewed at the same time, with the contract being awarded to the lowest bidder who meets the specifications.
An open bid is usually more informal and is used when specific requirements are hard to rigidly define or when products vary substantially.
See Also
References
- American Marketing Association, AMA Dictionary.