Term: IFB / CFB / RFB [IFB]
IFB (Invitation for Bids) / CFB (Call for Bids) / RFB (Request for Bids)
These are formal invitations to vendors to submit a priced bid for specific goods or services. They are common in government and construction sectors.
- Synonyms: Sealed bidding, competitive bidding, tender.
- Translation: Iepirkuma konkurss, uzaicinājums iesniegt piedāvājumu.
- Example: “The Ministry of Transport issued an IFB for the supply of 500 tons of road salt.”
How it differs from an RFP
In an RFP, the buyer says: “I have a problem; tell me how you would solve it.”
In an IFB/RFB, the buyer says: “I need exactly these items; tell me your lowest price.”
| Feature | RFP (Proposal) | IFB/RFB (Bid) |
| Goal | Find the best solution | Find the lowest price |
| Flexibility | High (vendors suggest methods) | Low (specifications are fixed) |
| Evaluation | Quality, experience, and price | Lowest responsive and responsible bidder |
| Negotiation | Common after submission | Usually prohibited; bids are “sealed” |
Key Terms to Know
- Sealed Bid: A process where all bidders submit their prices at the same time, and no one sees the prices until a specific “bid opening” date to prevent cheating.
- Responsive Bidder: A company that followed all the instructions in the bid document (filled out the forms correctly, met the deadline).
- Responsible Bidder: A company that actually has the money, equipment, and skill to do the work.
- SOW (Statement of Work): In an IFB, this section is extremely detailed because the vendor must follow it exactly.
When to use an IFB/RFB
Use this method when:
- The project is clearly defined (e.g., buying standard office chairs).
- There is no need for creative solutions or technical discussion.
- Price is the only or primary factor for the decision.