What Is an Open Bid?

Open tendering is the main procurement method for government procurement. It means that the purchaser invites all potential unspecified suppliers to participate in the bid by issuing a tender announcement in accordance with legal procedures. A method of procurement in which the selected suppliers are selected and the government procurement contract is signed with them. ^[1]

Open tender

The method of open tendering reflects the essential requirements of market information disclosure, standardized procedures, fair competition, objective evaluation, fair selection, and survival of the fittest. Public bidding is beneficial because there are many bidders, sufficient competition, and it is not easy to bid and bid around.

Public bidding can be divided into domestic public bidding and international public bidding according to the geographical scope of the public bidding.

There are three main types of projects that must be publicly tendered according to law:

First, national key projects and local key projects determined by the people's governments of provinces, autonomous regions and municipalities (Article 11 of the Tendering and Bidding Law);

The second is the projects that state-owned funds hold or dominate in accordance with the law and must be tendered (Article 8 of the Regulations for the Implementation of the Tendering and Bidding Law);

Third, other laws and regulations require public bidding. For example, Article 26 of the Government Procurement Law stipulates that public bidding should be the main procurement method for government procurement; Article 26 of the Land Reclamation Regulations stipulates that if the government invests in reclamation, the relevant land and resources department The construction unit of the land reclamation project shall be determined through public bidding in accordance with the laws and regulations of bidding and tendering.

For projects that must be publicly tendered in accordance with the law, due to demand conditions and market supply constraints, public tenders cannot be implemented, and they meet the conditions stipulated by the law, after examination, approval or approval by the relevant supervision and management department of the bidding project, invitational tendering may be adopted.