What is the concept of open bidding?

Open bidding refers to a procurement method designed to create a transparent and competitive environment for suppliers. This approach invites all interested suppliers to participate in the bidding process by submitting their proposals or bids. The fundamental principle behind open bidding is to ensure fairness and equal opportunity, allowing multiple suppliers to showcase their capabilities and pricing.

This method stimulates competition, often resulting in better pricing and quality of goods or services for the procuring entity. Open bidding is commonly used in public procurement processes and is governed by regulations that mandate the advertisement of bidding opportunities and make bid results publicly available.

In contrast, private negotiations and limited bidding processes restrict participation to a select group of suppliers, which may not provide the same level of competition and can lead to less favorable outcomes in terms of pricing and value. Evaluating supplier pricing strategies is a different activity that occurs after bids have been submitted, rather than being a method of solicitation itself.