Global Best Practice - Invitation for Bids (IFB) or Invitation to Tender (ITT)

In procurement, an invitation for bids (IFB) is a method often used to solicit competitive sealed bid responses when the award will be given based on price. It's important for procurement professionals to understand how to establish policies and procedures for the IFB process to ensure that they are compliant with all relevant laws and regulations. Procurement professionals also need to know how to evaluate bids in order to give award to the most deserving bid. Once awarded, procurement functions as the contract administrator by collecting relevant information related to supplier performance and maintaining the contract file. This practice includes criteria for IFB as well as a guide for how procurement can establish IFB policies and procedures. Upon reading this practice, procurement professionals should understand what the IFB includes and how the process works for best results. To minimize confusion and create clarity, this practice also distinguishes between terms that are commonly used during the procurement process, including IFB and ITT, and terms that are used broadly, such as "bid" and "tender."