Question
Competitive bid buying
Answer :
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Skip in 10
When a company, organization or government agency needs goods on a large scale or long-term critical services, it typically puts out a solicitation in the form of a request for proposal (RFP). It could be for a significant quantity of raw materials, an IT project, an infrastructure project, management of a pension fund, etc. Interested parties will come back with their competitive bids. The lowest price bid may not necessarily win a contract, as the purchaser must have confidence in the capabilities of the vendor or service provider to execute the order.
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