What defines "competitive bidding" in the procurement process?

Competitive bidding is characterized by a procedure that allows multiple vendors to submit proposals for a procurement opportunity. This method is designed to encourage competition among suppliers, which can lead to better prices, improved quality, and enhanced service delivery. By inviting bids from various vendors, procuring entities can evaluate their offers against set criteria, ensuring that the selection process is fair, transparent, and aimed at obtaining the best value for money.

The essence of competitive bidding lies in the participation of various suppliers, enabling the organization to compare different proposals based on cost, capability, and compliance with requirements. This open approach contrasts with selecting a single vendor or entering negotiations, which might limit the options available. Additionally, competitive bidding is not typically associated with acquiring emergency supplies, which may require expedited or specialized procurement methods.