What is an invitation to bid (ITB)?

An invitation to bid (ITB) is a formal solicitation issued by an organization seeking to procure goods or services. Its primary purpose is to invite suppliers to submit their competitive bids, outlining how they would fulfill the requirements of the purchase. The process typically involves the issuance of detailed specifications and requirements to ensure that potential vendors understand what is expected, allowing them to respond appropriately.

This option is particularly accurate as it reflects the essence of the ITB process: to encourage suppliers to propose their best offers in response to the defined needs, thereby fostering competition and ensuring that the organization receives the best possible price and quality for the project. An ITB is a crucial step in procurement, as it establishes the framework for transparency and fairness in vendor selection.

The other options, while related to procurement processes, do not accurately define an ITB. A formal request for project proposals is more aligned with a Request for Proposal (RFP), which allows for more comprehensive responses that include qualitative and technical aspects beyond just pricing. Guidelines for creating a contract pertain to the post-award phase and do not involve soliciting bids. Lastly, a notification of a contract award signifies the conclusion of the bidding process rather than the initiation of it.