Sealed Bidding Discussion (Essay Sample)

Bidding Process
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Sealed bidding is a method of getting a contract that involves competitive bids, public opening of bids and thereafter awards. The process of bidding involves;
1 Preparing invitation for bids – in this, the requirements by the government, should be clear, and should be accurate and complete. There should not be unnecessary requirements that might limit bidders. This is prohibited.
2 Invitation for bids are publicized - publicizing is done through posting in public places, distributing to the prospective bidders and any other way that may reach a bidder. When this is done, it must give sufficient time for bidders to prepare.
3 Submission of bids- bidders should submit sealed bids at a place that is stated. Bids should be opened at a place that is stated in the solicitation.
4 Evaluating bids- bills should be evaluated without discussions.
5 Award of the contract - the contract should be awarded according to the merits of the bidders (Engelback, 2012).
The advantage of a sealed bidding is that there is a minimum amount of bidding. This can be established through the reserve price there is a guarantee that the bidder does not cannot submit a price that is low and can course the bidder not to complete the project on the amount. An example of a successful sealed bid is at London where a quarter of London properties were sold in height of the boom (Compton, 2010).
In a sealed bidding, getting or being rewarded with a contract depends on the merits and the responsiveness of the bidder.
The disadvantage of sealed contract is that in complex procurement projects negotiation is preferred to get a reasonable price.
Bidders can improve sealed bidding by
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