At first glance, some of the terms are confusing.
What is a Bid?
A bid is a formal response to a customer’s specific request for provision of product or services. The act of bidding is arguably the generation of a proposal that meets the customer’s defined requirement.
Bids take place for a range of commodities and services. In both the public and private sectors.
The customer details their requirements within a package that is generally issued to potential suppliers. The nature of bidding is competitive, several suppliers are likely to submit bids, which will be judged on their merits by the customer. Ultimately through this process the customer will select the winning bid.
The customer’s requests for an offer or proposal may require several steps and is has its own terminology which can be ambiguous and can vary country to country. I would always advise caution and clearly read any specific instructions and if necessary, seek appropriate expertise.