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Difference Between
Bid and Proposal

The request for bid is the most broadly used document in government procurement. It spells out the minimum requirements necessary for the goods or services being requested.

Awards are based on the lowest price meeting the minimum basic needs of the organization and the written specifications used.

Negotiation after the bids are opened is not allowed, the bids must be evaluated as submitted.

On the other hand, a request for proposal is a process that allows other factors besides price to be evaluated.

Qualifications, experience, approach are variables that can be judged. Negotiations are allowed under this type of process and as long as the scope of project are not changed from the original request.