open-bid buying

Open-bid buying is a purchasing procedure used by government agencies. In this method, the government provides detailed specifications for required products and services and solicits bids from potential suppliers. Contracts are typically awarded to the lowest bidder. This process is distinct from negotiated contracts, where a government agency negotiates directly with one or more companies for specific projects or supply needs, often for complex or specialized requirements where competition may be limited. Auctions, a related concept, involve selling property through open public bidding, where the highest bid is accepted.12