Government Terminology
Bid – a tender, proposal or quotation submitted in response to a solicitation from a contracting authority
Bidders’ Conference – a meeting to discuss with potential bidders, technical, operational and performance specifications, and/or the full extend of financial, security and other contractual obligations related to a bid solicitation
Closing Date – the deadline for all bid submissions
Competitive Bidding – offers submitted by individuals or firms competing for a contract, privilege or right to supply specified services or merchandise
Contract – obligation between competent parties up a legal consideration, to do or abstain from doing some act
Contract Amendment – an agreed addition to, deletion from, correction or modification of a contract
Contractor – one who contracts to perform work or furnish materials in accordance with a contract.
Estimated Value – indicates the approximate value of the contract
Procurement – the process of obtaining material and services which includes the determination of requirements and acquisition from a supply system or by purchase from the trade
Proposal – an offer, submitted in response to a request from a contracting authority, that constitutes a solution to the problem, requirement or objective in the request
Invitation for Bid (IFB, IFBs) – an IFB is also referred to as a “sealed bid”. It is usually for requirements over $100,000, it is competitive and the lowest bid will win
Request for Proposal (RFP, RFPs) or Request for Tender (RFTs, RFT) – an RFP, while generally used for requirements of $25,000 or more, is often employed for requirements where the selection of a supplier cannot be made solely on the basis of the lowest price. An RFP is used to procure the most cost-effective solution based upon evaluation criteria identified in the RFP
Request for Quotation (RFQ, RFQs) – an RFQ is normally sent out when a requisition is received for goods and services valued at less than $25,000. The bid documents are kept simple so that the contract can be awarded quickly