Glossary
Invitation for Bid (IFB)
An Invitation for Bid (IFB) (called an Invitation to Bid or ITB in many states) is a sealed-bid solicitation used when the agency can describe exactly what it wants. Bids are opened publicly at a fixed deadline and the contract goes to the lowest bidder who is both responsive and responsible. There is no scoring, no interview and no negotiation.
This is the default method for construction and for commodities in most state codes, because when specifications are complete, price is the only variable left to compete on.
The short version
- Award is mechanical: low responsive responsible bid wins. Evaluators have no discretion to prefer a better company at a higher price.
- Because there is no negotiation, every requirement you cannot meet has to be resolved before the deadline, usually through a written question.
- Bids are read aloud at a public bid opening, so your price becomes public immediately.
- Sealed bidding is the preferred method for federally funded construction under 2 CFR 200.320.
Why it matters to a bidder
An IFB rewards estimating discipline and punishes narrative skill. Nothing you write about your firm changes the outcome. Three consequences follow:
- No second chance on price. Once bids are opened your number is fixed and public. There is no BAFO round.
- Compliance risk is concentrated in paperwork. Most IFB losses among low bidders are responsiveness rejections: a missing bid bond, an unacknowledged addendum, a blank line on the schedule.
- Specifications are your leverage window. The only time to challenge a restrictive spec is during the question period, before bids are due.
A real example
A school district issues an IFB for roof replacement at two elementary schools, with a full drawing set, a mandatory site walk and a 5 percent bid bond. Nine contractors bid. The apparent low bidder attended the site walk but did not acknowledge Addendum 3, which revised the deck detail. The district rejects that bid as nonresponsive and awards to the second low bidder, roughly 4 percent higher. Nobody evaluated either company's crews.
How state and local differs from federal
The federal government calls this an Invitation for Bids under FAR Part 14 and uses it rarely; most federal buying is negotiated. State and local government is the opposite. Sealed bidding is often the statutorily preferred method, and an agency that wants to use an RFP instead may have to document why bidding is not practicable. Florida, for example, requires an agency to record in writing why an Invitation to Bid is not practicable before using an RFP or ITN.
Naming varies: IFB, ITB, Invitation for Bids and simply Bid all describe the same method. Match the solicitation's own language when you correspond with the buyer.
Common questions
Is an IFB the same as an ITB?
Yes. Invitation for Bid, Invitation to Bid and Invitation for Bids are regional variations on the same sealed-bid method.
Can an agency negotiate after an IFB?
Not on price or scope in the ordinary case. That is the defining constraint of sealed bidding. If the low bid exceeds the budget, most codes require rebidding or a documented alternative procedure.
Can I withdraw a bid after opening?
Sometimes, on a documented clerical mistake, under the state's bid-mistake rules. You will usually have to show the error from your original worksheets, and you may forfeit the bid bond if relief is denied.
Does the low bidder always win?
No. The lowest responsive and responsible bidder wins. Those two qualifiers do real work.