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Glossary · United States

Sealed bidding

Sealed bidding is the method behind an invitation for bids: bidders submit firm, sealed prices by a deadline, the bids are opened publicly, and the contract goes to the lowest-priced responsive bid from a responsible bidder, without discussions (FAR Part 14).

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Definition

Sealed bidding is the method behind an invitation for bids: bidders submit firm, sealed prices by a deadline, the bids are opened publicly, and the contract goes to the lowest-priced responsive bid from a responsible bidder, without discussions (FAR Part 14).

It is the default for most public construction at the state and local level.

How it differs

  1. 01

    vs. Request for proposals (RFP)

    Negotiated procurement (RFPs) allows tradeoffs and discussions; sealed bidding does not. What is RFP?

  2. 02

    vs. Reverse auction

    A reverse auction lets bidders see and beat each other's prices; sealed bids are secret until opening. What is Reverse auction?

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Questions

What does "sealed bidding" mean in procurement?

Sealed bidding is the method behind an invitation for bids: bidders submit firm, sealed prices by a deadline, the bids are opened publicly, and the contract goes to the lowest-priced responsive bid from a responsible bidder, without discussions (FAR Part 14).

What is the difference between Sealed bidding and RFP?

Negotiated procurement (RFPs) allows tradeoffs and discussions; sealed bidding does not.

What is the difference between Sealed bidding and Reverse auction?

A reverse auction lets bidders see and beat each other's prices; sealed bids are secret until opening.

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