IFB (Invitation For Bid)

What is IFB (Invitation For Bid)?

An Invitation For Bid (IFB) is a formal solicitation method employed by government agencies to procure goods or services, generally when the requirements are well-defined and the primary selection criterion is price. It represents a structured approach to obtaining competitive bids from qualified contractors, ensuring fairness and transparency in the procurement process.

Definition

An IFB is a solicitation used primarily when the government knows precisely what it needs and can articulate those needs in clear, unambiguous specifications. Under Federal Acquisition Regulation (FAR) Part 14, IFBs are designed to award a contract to the responsible bidder whose bid conforms to the solicitation and is most advantageous to the Government, considering only price and price-related factors. IFBs are particularly suitable for construction projects, standardized supplies, or routine services where there is little room for technical variation. The government agency must publicly advertise the IFB, allowing all qualified contractors the opportunity to submit a bid. Because the award is based primarily on price, it's critical for contractors to thoroughly understand the specifications and ensure they can meet them cost-effectively.

Key Points

• Focus on Price: The primary evaluation factor in an IFB is price. Technical specifications must be met, but the lowest price generally wins the contract.
• Strict Compliance: Bids must strictly adhere to the requirements and specifications outlined in the IFB. Non-compliant bids are typically rejected.
• Public Advertising: IFBs are publicly advertised to ensure broad competition and transparency in the procurement process.
• Sealed Bidding: Bids are typically submitted in a sealed format and opened publicly at a specified time and date.

Practical Examples

1. Road Resurfacing Project: A city government issues an IFB for resurfacing a section of road. The IFB includes detailed specifications for the type of asphalt, thickness of application, and required completion timeframe. Bids are evaluated based on price, and the contract is awarded to the lowest bidder who can meet the specifications.
2. Procurement of Standard Office Supplies: A federal agency needs to replenish its stock of printer paper. It issues an IFB specifying the paper size, weight, and quantity. Bidders submit their pricing, and the contract is awarded to the vendor offering the lowest price for conforming paper.
3. Janitorial Services for a Government Building: A state agency solicits bids for janitorial services for one of its buildings through an IFB. The IFB clearly defines the scope of work, cleaning frequencies, and required materials. The lowest responsive and responsible bidder is awarded the contract.