We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.
Business

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

What Are Bid Documents?

Gerelyn Terzo
By
Updated: May 17, 2024
Views: 27,693
Share

Bidding on a contract of any kind can be a highly competitive process. Whether submissions are accepted by any relevant service provider or may only be presented on an invitation basis, the information requested in bid documents must be comprehensive. It is based on the very materials that a business or other organization will use to make a decision for some contract. The bid documents may not be the only factor for a decision, as top bidders are often invited for live interviews to help streamline the selection, but without these submissions, new business relationships might never be formed.

In the event that an organization already knows which service providers to consider for a contract, it might distribute an invitation to bid (ITB) to the relevant parties. Even with that formal display of interest, the bidder must follow some procedures, or it may be in jeopardy of losing its consideration. A short-list of candidates may be selected early based on previous business relationships or very specific criteria that are established from the onset of the bidding process. That group may be narrowed down further before a final selection is made based on the bid documents that are presented.

Bid documents must be submitted in the format that the hiring firm prefers. This requirement could be to send materials electronically, via traditional mail, or both. If a third-party consultant is involved in the search process, bid documents may also need to be sent to this individual. It is possible that the hiring firm will provide some type of application template or accept original materials submitted by the candidates.

A hiring firm or its consultant should outline the information that is needed in bid documents. This outline can be offered in an ITB or a request for proposal (RFP), which is more of an open invitation to receive offers. Also, the deadline for submissions should be clarified, which could include not only a date but also a specific time by which bid documents must be received. Questions surrounding an ITB or RFP may similarly have deadlines, and answers to those queries may be published for all candidates to view.

The details that are included in bidding materials will be based on the type of service being requested. In finance, an investment manager bidding on a contract will likely need to provide the amount of money overseen by the firm in addition to past investment performance. Even if a service provider is released from a contract, that firm might be welcome to rebid and resubmit documents at a future date.

Share
WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Gerelyn Terzo
By Gerelyn Terzo
Gerelyn Terzo, a journalist with over 20 years of experience, brings her expertise to her writing. With a background in Mass Communication/Media Studies, she crafts compelling content for multiple publications, showcasing her deep understanding of various industries and her ability to effectively communicate complex topics to target audiences.

Editors' Picks

Discussion Comments
Gerelyn Terzo
Gerelyn Terzo
Gerelyn Terzo, a journalist with over 20 years of experience, brings her expertise to her writing. With a background in...
Learn more
Share
https://www.wisegeek.net/what-are-bid-documents.htm
Copy this link
WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.