IFB (Invitation for Bids)
IFB stands for Invitation for Bids. An IFB is the solicitation used in sealed bidding. Bidders submit a firm price by a set time, the bids are opened publicly, and award goes to the lowest-priced bid that is both responsive (meets every material requirement) and from a responsible bidder (able to do the job). There are no discussions or negotiations.
Sealed bidding is common in construction and in state and local purchasing. Because there is no negotiation, a missing signature, an unacknowledged amendment or a qualified price can make a bid nonresponsive and get it thrown out.
Why it matters to a small contractor
IFBs are pure price contests, which can favor a lean small business with low overhead. The catch is that the bid must be perfect on paper. Check every required form, bid bond and acknowledgment twice, because there is no second chance to fix it.
Example
A city water department issues an IFB to repave a maintenance yard. Six contractors submit sealed bids, the bids are read aloud at 2:00 p.m., and the lowest responsive bid at $184,000 is recommended for award.
IFB: common questions
What does responsive mean in an IFB?
A responsive bid conforms to all material terms of the IFB without changing them. Adding your own conditions, leaving out a required price or ignoring an amendment can make a bid nonresponsive.
Can a late bid be accepted?
Generally no. Late bids are rejected except in narrow situations spelled out in the rules, such as certain government handling delays. Plan to submit well before the deadline.
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