What is a sealed bid?

Sealed Bid, also known as a closed bid, is a procurement method in which potential suppliers submit their bids for a specific project or procurement opportunity in a sealed envelope or electronically in a secure system. These bids are typically kept confidential until a predetermined deadline or bid opening event.

The sealed nature of the bids ensures that suppliers cannot see each other's proposals during the bidding process, promoting fairness and preventing collusion. After the bid opening, the organization or procurement authority evaluates the sealed bids based on predefined criteria and selects the winning bid.

Sealed Bids are commonly used in government procurements, construction projects, and other situations where transparency and impartiality are essential.