Sealed Bid

A sealed bid is the standard submission format for formal competitive tenders under MDB, UN, and EU procurement rules, ensuring that no bidder gains an unfair advantage by learning a competitor's price before submitting their own.

What is a Sealed Bid?

In sealed bidding, each competing supplier prepares their offer in a closed, signed, and often wax-sealed or tamper-evident package. The implementing agency sets a single deadline by which all bids must be received. Bids are held in a secure location, unopened, until the publicly announced bid opening session. At that session, the bid opening committee opens and reads out the key commercial details, typically the bidder's name, the total bid price, any discounts, and the presence of required documents such as the bid-security.

The sealed format is fundamental to the integrity of icb and formal ncb competitions. It prevents collusion, bid shopping (where a contractor reveals competitors' prices to get a lower sub-bid), and interference by the buyer's staff. Any bid received after the deadline is returned unopened. Any bid whose seal is broken or shows tampering is typically rejected. Electronic procurement platforms replicate the same controls using digital encryption and locked file containers, maintaining the sealed-bid discipline in paperless submissions.

Why Sealed Bids matter for bidders

The sealed-bid process is also your protection as a supplier. Your price is confidential until the moment of opening, which means no competitor or buyer official can use it against you before evaluation. Your discipline is to ensure every submission requirement is met before you seal the package: all required documents included, bid signed by an authorised person, bid-security enclosed in the correct form, bid-validity period confirmed, and the outer package correctly labelled with the bid reference. A single missing item can render an otherwise competitive offer non-responsive.

FAQ

Can a bidder open and resubmit a sealed bid after submission?

A bidder may withdraw or modify a sealed bid before the bid deadline by submitting a written notice. After the deadline, no modification is permitted and the original sealed bid stands.

What happens at a public bid opening?

An authorised committee opens each bid in the presence of bidders or their representatives, reads out the key commercial figures, and records them in a bid opening register. This register is usually available to all bidders.

Are electronic bids considered sealed bids?

Yes. E-procurement platforms encrypt submitted files so they cannot be accessed until the bid opening time, providing the digital equivalent of physical sealing. The same procedural rules apply.