competitive bidding

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Competitive bidding

A securities offering process in which securities firms submit competing bids to the issuer for the securities the issuer wishes to sell.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Competitive Bid

A sealed bid, given to an issuer by an underwriter, containing a prospective price and terms for a contract. At the close date of bidding, the issuer picks the best offer. U.S. Government agencies are usually required to use this process and award the contract to the least expensive option. This is also used for various other ventures, from IPOs to project finance.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

competitive bidding

1. A method by which a corporation or government organization wishing to sell securities in the primary market chooses an investment banker for the sale on the basis of the best price submitted by interested investment bankers. Municipal governments and public utilities are often required to ask for competitive bids on new security issues. See also negotiated offering.
2. The bidding on U.S. Treasury securities in which an investor stipulates a particular price or yield.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
Under the program, a competition among suppliers who operate in a particular competitive bidding area is conducted.
Competitive bidding, technically called Reverse Auction Mechanism, has not been organised in Pakistan and there is no prior experience.
Earlier, he said, power generation companies were given a specific profit for the power generation, but now investors would be invited for the competitive bidding to get the lowest rates and pass on maximum benefit to consumers.
The change in policy is not going to discourage the investment in any way and within eight weeks you will see the competitive bidding for award of generating 400 megawatts wind and 600MW solar electricity, the minister claimed.
Whether a home care provider participates in competitive bidding or not they need know their costs of doing business.
Also in October, the National Community Pharmacists Association released results from a survey of more than 800 community pharmacists about the potential impact of Part B diabetes supplies--including testing strips, monitors, lancets and glucose control solutions --being subject to the competitive bidding program.
Several unions in Ontario represent homecare workers, and have taken clear positions against the competitive bidding process.
The Centers for Medicare & Medicaid Services (CMS) has announced the next steps in the implementation of the Round One Rebid of the Medicare Competitive Bidding Program for durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS), including the general timeline for opening the bid window in the fall of this year.
Orszag, who received a warm reception, outlined how the Obama Administration is implementing competitive bidding procedures to the public-private managed care program created by the 2003 Medicare Modernization Act.
Early in the year laboratories faced a dismal reimbursement future with a competitive bidding demonstration project scheduled to begin in San Diego in July, along with a soon-to-be announced second site.
The Balanced Budget Act of 1997 required the Centers for Medicare & Medicaid Services (CMS)--the agency that administers Medicare--to test competitive bidding as a new way to set payments.

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