What is the primary function of an Invitation to Bid (ITB)?

The primary function of an Invitation to Bid (ITB) is to invite suppliers to submit their bids for a project. An ITB is a formalized document used in procurement that lays out the requirements and specifications of a project or contract, encouraging qualified vendors to propose their costs and terms for completing the work. This process is crucial because it promotes competition among suppliers, ensuring that the purchasing entity can obtain the best value for goods or services.

The ITB provides necessary details such as project scope, timelines, and evaluation criteria, enabling suppliers to prepare their bids accurately. The emphasis on inviting proposals highlights the proactive approach taken by organizations to seek out the most qualified bids for a job, often leading to better pricing and service options.