Identify and explain two situations when competitive bidding cannot be used?

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pohnpei397 | College Teacher | (Level 3) Distinguished Educator

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One situation in which competitive bidding cannot be used is one in which there is not enough competition for the bid.  For example, if there is only one seller of a given product, or if the product that is needed is unique, a bid would not really be possible.

A second situation is the case of an emergency.  If a business or a government agency needs a good or a service very quickly, a competitive bidding process would not be appropriate.  This is because the process would take too long.

In both of these cases, the business or organization should negotiate a price with the vendor rather than calling for bids.

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