Competitive Sealed Bidding (ITB)

Competitive Sealed Bidding is a method of procurement used to acquire products or services that exceed $250,000.  The intermediate procurement threshold as defined by ORS.279B.070.  Unless an agency is delegated the authority to conduct the procurement, DAS State Procurement Services facilitates the Competitive Sealed Bidding process and coordinates with the agency throughout the process. In this section of the manual, the term “procuring agency” includes DAS State Procurement Services or an agency that has been delegated authority to conduct a competitive sealed bidding procurement.

To initiate the Competitive Sealed Bidding process, a procuring agency issues an Invitation to Bid (ITB). Potential suppliers submit bids for the required products or services in response to the ITB. After evaluating bid responses, the procuring agency awards to the lowest responsive and responsible bidder. The Competitive Sealed Bidding method does not allow a procuring agency to negotiate with a bidder.

Agencies must make their Buy Decision in the priority order specified in administrative rule. Before selecting an open market method, such as Competitive Sealed Bidding, an agency must first determine that the procurement need cannot be met through a higher priority. If an agency procures products or services that exceed $250,000 through an open market method, or services that exceed the intermediate procurement threshold as defined by ORS.279B.070 then it must use either the Competitive Sealed Bidding or Competitive Sealed Proposals method, unless otherwise covered by a statutory exception.

An agency should use the Competitive Sealed Bidding method when it is clear on “what” the product or service is and “how” the product or service must perform. An agency should use the Competitive Sealed Bidding method if there are no substantive differences among the products or services that meet specifications, and the only difference among responsive bids is price.

For formal procurements, refer to the following table that distinguishes the characteristics of Competitive Sealed Bidding versus Competitive Sealed Proposals.

Refer to Competitive Sealed Proposals (RFP) for more information on this formal procurement method.

Note: Prior to selecting any formal procurement method through the open market, an agency should refer to Procurement Planning for more information on conducting appropriate plan activities that facilitate the procurement process.

How to Process Competitive Sealed Bids

A procuring agency must use a process that comprises the following eights tasks to conduct a solicitation through the Competitive Sealed Bidding method: