Sealed Bid

A sealed bid in procurement is a formal bidding process in which suppliers submit their offers in sealed envelopes (or electronically, with restricted access) by a specified deadline. The bids are kept confidential and opened simultaneously at a set time—usually in the presence of relevant stakeholders—to ensure fairness and transparency.

Key Features of Sealed Bids:

• Confidentiality: Bidders cannot see each other’s offers before submission.
• One-Time Submission: Vendors typically submit their best and final offer with no negotiation after bids are opened.
• Fair Competition: Prevents bid manipulation or favoritism by maintaining impartiality.
• Formal Process: Common in government and large public-sector procurements.

When to Use a Sealed Bid:

• When the requirements are clear and unambiguous.
• When the selection will be made primarily based on price or defined criteria.
• In public sector or regulated environments where transparency is critical.