Competitive Bidding (Full and Open Competition)
The standard procurement process where the government publicly solicits proposals from multiple vendors and selects the best offer based on price, quality, and capability.
How It Works
Federal law generally requires "full and open competition" for government contracts. The process typically involves: (1) the agency publishes a solicitation on SAM.gov describing what it needs; (2) companies submit proposals with technical approaches and pricing; (3) the agency evaluates proposals against published criteria; (4) the agency selects the winner (usually "best value" — not always the cheapest). Competition helps ensure the government gets fair prices and quality work. About 60% of contract dollars are awarded competitively.
Related Terms
- Sole-Source Contract (No-Bid Contract) — A contract awarded to a specific company without competitive bidding — used when only one vendor can meet the requirement or in urgent situations.
- Federal Contract — A legally binding agreement between the U.S. government and a private company to provide goods or services — from fighter jets to IT consulting.
- SAM.gov (System for Award Management) — The federal government's central registration database for entities doing business with the government — required for receiving contracts, grants, or other awards.
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About This Definition
This definition is part of the TaxDollarData Federal Spending Glossary — 31 terms explaining how the U.S. government spends taxpayer money. All definitions are written in plain language for taxpayers, journalists, contractors, and researchers.