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

1 Answer

pohnpei397's profile pic

pohnpei397 | College Teacher | (Level 3) Distinguished Educator

Posted on

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.