Invitation To Bid

An invitation to bid (ITB) is a document that requests vendors to submit sealed bids for products or services. The ITB process is used for large procurement projects that require competitive bidding.

The ITB definition can vary depending on the country and industry. In the construction industry, for example, an ITB may request bids for materials, labor, and equipment. In the United States, an ITB must be issued if the project is valued over a certain threshold, which varies by state.

TheITB process typically begins with the publication of a notice that invites interested parties to submit bids. The notice will include information such as the project scope, anticipated start date, and submission deadline. Vendors who wish to compete for the project will then submit their bids by the deadline.

Once all bids are received, they are evaluated according to predetermined criteria such as price, quality, and delivery time. The winning bid is then awarded the contract.

The ITB process is designed to ensure that procurement projects are awarded to the most qualified and lowest-priced bidder. By publishing a notice and inviting bids from multiple vendors, procuring entities can avoid awarding contracts through sole-source arrangements or direct negotiations.