What Is Bid Procurement ?

1 ANSWERS

1. Guest2717
   

   Bid procurement is a system in which companies seeking a product or service allow other companies or individuals to submit competing offers in order to win the right to provide the requested product or service. The process is also known as a "call for bids," as the company needing the product or service is calling upon providers to submit their best bid. Bid procurement is often handled by the purchasing agent for the company seeking a product or service. This person has the authority to award contracts to suppliers of the winning bid.
   
   Most companies that rely on the products or services of third parties have a bid procurement department. These companies include those which need raw materials to produce their finished product, like manufacturing firms, or computer assemblers or resellers, among others. The company requesting the bids will also outline the requirements of each bid in a document called a request for proposal (RFP). The request for proposal outlines the procedure which the bidders need to follow to submit their bids. This generally includes the price which the supplier will supply a product or service and the time in which it will be delivered.

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