Invitation For Bid
Encyclopedia
An invitation for bid (IFB) or invitation to bid (ITB) is an invitation to contractors or equipment suppliers, through a bidding
process, to submit a proposal on a specific project to be realized or product or service to be furnished. IFB is generally the same thing as Request for Quote (RFQ). The IFB or RFQ is focused on pricing, and not on ideas or concepts.
If not stated otherwise, the contractor or supplier with the lowest bid is awarded the contract, provided that they meet the minimum criteria for the bid. This is in contrast to a request for proposal
(RFP), in which case other reasons (technology used, quality) might cause or allow choice of the second best offer. An RFP is a request for a price from a buyer but the buyer would also expect suggestions and ideas on how the project work should be done. RFPs are thus focused on more than just pricing/cost, they entail a bit of consulting from the contractor or vendor.
Bidding
Bidding is an offer of setting a price one is willing to pay for something. A price offer is called a bid. The term may be used in context of auctions, stock exchange, card games, or real estate transactions....
process, to submit a proposal on a specific project to be realized or product or service to be furnished. IFB is generally the same thing as Request for Quote (RFQ). The IFB or RFQ is focused on pricing, and not on ideas or concepts.
If not stated otherwise, the contractor or supplier with the lowest bid is awarded the contract, provided that they meet the minimum criteria for the bid. This is in contrast to a request for proposal
Request for Proposal
A request for proposal is issued at an early stage in a procurement process, where an invitation is presented for suppliers, often through a bidding process, to submit a proposal on a specific commodity or service. The RFP process brings structure to the procurement decision and is meant to...
(RFP), in which case other reasons (technology used, quality) might cause or allow choice of the second best offer. An RFP is a request for a price from a buyer but the buyer would also expect suggestions and ideas on how the project work should be done. RFPs are thus focused on more than just pricing/cost, they entail a bit of consulting from the contractor or vendor.