Open vs. Sealed Bids

Open Bids - Transparent procurement method in which bids from competing contractors, suppliers, or vendors are invited by openly advertising the scope, specifications, and terms and conditions of the proposed contract as well as the criteria by which the bids will be evaluated. Open bidding also known as “Competitive bidding” aims at obtaining goods and services at the lowest prices by stimulating competition, and by preventing favoritism.

Sealed Bids - Document enclosed in a glued (sealed) envelope and submitted in response to invitation-to-bid (ITB). Sealed bids received up to the deadline date are generally opened at a stated time and place (usually in the presence of anyone who may wish to be present) and evaluated for an award of a contract.