Sealed Bidding

In: Business and Management

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Sealed Bidding vs. Competitive Proposals
Compare and Contrast
Charles E. Andrews

Professor Stephen Bartorillo

BUS315 April 28th, 2013

Sealed Bidding vs. Competitive Proposals

C. Andrews

Sealed bidding is a “process by which government needs are made known by a solicitation called an Invitation for Bids (IFB)”; whereas, competitive proposals is a “process by which the government needs are made known by a solicitation called a Request for Quotation (RFQ) or a Request for Proposals (RFP)” (Murphy, p17, 2009). With sealed bidding there is no negotiation for contractors, therefore the best proposal for the lowest possible price should be offered. Not only does the contractor have to propose the lowest possible offer, but the contractor must be considered responsive and responsible by the contracting officer. Responsive is noted to “have not taken exception to any material aspect of the specification, work statement, or other terms of the proposed contract”; while, responsible is noted to be deemed “capable of performing and meeting the terms stated in the IFB” (Murphy, p17, 2009). Since there is no negotiation with sealed bidding, and the contract is awarded to the lowest bidder who is deemed responsive and responsible, the contractor must be mindful of all of their expenses associated with completing the work to the government’s specifications, as there are no adjustments once the contract has been awarded. By the contractor fine tuning his skill of estimating his costs, his desired profit, and displaying his proficiency would place him in a prime position for acceptance.

Unlike the “one shot” deal with sealed bidding, competitive proposals hold a whole array of flexibility. Incorporated with the initial proposal, negotiation such as “discussions”, revisions, and “competitive range” are considered. Prior to selection, a competitive range is created…...

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