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The three most effective formal methods of competitive bidding are the Request for Quotation (RFQ), the Request for Proposal (RFP), and the Request for Qualificatons (RQFL).
Bids can be made live, online, through brokers, or through a closed bidding process. Types of bids include auction bids, online bids, and sealed bids.
Competitive bidding involves a proposal by one company seeking to offer services or bid for business with another company. It is commonly associated with a proposal to a soliciting firm seeking services of a large scale, usually for a specified amount of time.
Title 61. Public Buildings and Public Works. §61-1. Bond to be furnished on public works contracts.
One example of competitive bidding in action is public works projects, such as the construction of roads, bridges, or public buildings. A government agency would issue an RFP or ITB for the project, outlining the specific requirements and specifications.
All public construction contracts shall be let and awarded to the lowest responsible bidder, by open competitive bidding after solicitation for sealed bids. No work shall be commenced until a written contract is executed and all required bonds and insurance have been provided by the contractor to the County.