Dictionary of Procurement Terms

The response submitted by a bidder to an Invitation for Bids (IFB). See also: Solicitation.

1. A comprehensive review of all bid prices to determine the degree of competition from the lowest to highest bids, including reasonableness of the low bid in comparison with the entity's estimate. 2. The presence of mathematical or substantive errors. 3. The presence of evidence regarding bid rigging. See also: Bid Tabulation.

An insurance agreement accompanied by a monetary commitment by which a third party (the surety) accepts liability and guarantees that the bidder will not withdraw the bid.

A sum of money, a check, or other acceptable cash alternative (such as an irrevocable letter of credit or the contractor’s pledge against owned property or against personal assets deposited with the entity by a bidder) used as a guarantee that the bidder will enter into a contract if awarded. The bid deposit may also be in the form of a bond issued by a surety and deposited with an entity to guarantee the bidder will not withdraw the bid for a specified time period, will furnish bonds as required, and will accept a contract if awarded, or forfeit the deposit.

A file containing all of the information and records relating to the bid, which may include all of the original bids received, addenda, bonds, correspondence, a copy of the solicitation, award documents, and all other relevant data that may be subject to audit and further review.

See Bid Tabulation, Bid Analysis.

See Solicitation File

See Bid Bond, Bid Deposit.

The official process in which sealed bids are publicly opened and recorded, perhaps in the presence of one or more witnesses, at the time, place, and manner (in person or virtual) specified in the Invitation for Bids.

Procurement laws mandating that bid prices for a preferred class of bidders be given special consideration when comparing their bid prices with those of other bidders not in the preferred class (for example, local suppliers may be given a bid preference over suppliers that are not defined as “local.”) See also: Buy Local, Local Preference.