An Invitation for Bids (IFB) is a procedure set up by government agencies to award contracts to the lowest bidder. Savvy businesspeople can benefit from the IFB process by knowing which government agencies and contracts to pursue, as well as how to structure bids that offer the highest chances for success.
The IFB selection process is based primarily on price, so you should make your bid as competitive as possible. You should also read each IFB carefully and only bid on those that your company can do well. After all, doing a good job puts you first in line the next time a contract is awarded.
Government agencies advertise IFBs through sources such as the U.S. Commerce Department’s Commerce Business Daily and FedBizOpps, as well as a host of city and county government Web sites. The invitation gives the specifics as to what is required in the contract.