What does "invitation to bid" (ITB) refer to in procurement?

The term "invitation to bid" (ITB) specifically refers to a formal request issued by an organization inviting potential suppliers to submit their bids for the provision of goods or services. This process is particularly common in public procurement and is intended to ensure transparency and competitiveness. By issuing an ITB, the organization clearly outlines the requirements, specifications, and conditions under which bids will be evaluated, allowing suppliers to provide their best offers based on these criteria.

This method fosters a competitive environment where suppliers can present their pricing and services in response to the organization's specific needs. The ITB process is crucial for enhancing accountability and ensuring that the organization receives proposals from a diverse pool of qualified vendors, which ultimately helps in obtaining the best value on procurement contracts.

The other options do not accurately depict what an invitation to bid entails:

• A contract awarded to a single supplier indicates the outcome of the bidding process rather than the initiation of it.

• A type of procurement strategy is a broader classification that encompasses various approaches, not specifically the formal invitation to bid process.

• A method of evaluating suppliers refers to the criteria or process used to assess the submitted bids, which is a step that follows the issuance of the ITB rather than being a description of the ITB itself