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Sealed Bids Vs. Competitive Proposals Term Paper

Sealed Bids vs. Competitive Proposals As part of their job description, contracting officers have to make a wide range of decisions relating to procurement. One of these decisions is whether to use competitive proposals or sealed bids. In this text, I compare and contrast competitive proposals and sealed bidding. In so doing, I will amongst other things discuss the most advantageous method from a contractor's perspective.

Sealed Bids vs. Competitive Proposals

Before discussing the most advantageous method from a contractor's perspective, it would be prudent to come up with a clear and concise definition of the two terms. Sealed bidding in the words of Murphy (2009) "is a process by which government needs are made known by a solicitation called an Invitation for Bids (IFB)." On the other hand, competitive proposals according to the author should be seen as a "process by which government needs are made known by a solicitation called a Request for Quotation (RFQ) or a Request for Proposals (RFP)"...

As Sollish and Semanik (2012) point out, a sealed bid is most appropriate when there exists a need to guarantee an equitable award to the contractor who emerges as being the most appropriate from the perspective of price. Therefore, this method could be most beneficial to contractors adopting a cost leadership strategy. Such a contractor could essentially be offering its services at prices that are essentially below the industry's average prices. In that regard, the said contractor stands a far greater chance of clinching the bid. This is more so the case given that in sealed bidding, exact performance specifications are usually stated clearly. The contractor thus knows what is required beforehand. It is also important to note that when it comes to sealed bids, other factors including but not limited to the level of technology utilized do not usually influence the decision as…

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References

Murphy, J.E. (2009). Guide to Contract Pricing: Cost and Price Analysis for Contractors, Subcontractors, and Government Agencies (5th ed.). Virginia: Management Concepts.

Sollish, F. & Semanik, J. (2012). The Procurement and Supply Manager's Desk Reference (2nd ed.). Hoboken, NJ: John Wiley & Sons.
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