What Is Corporate bidding
Corporate bidding is a competitive bidding in a form of solicitation used in Bitcoin treasury bills. The soliciting process of institutional bidding is for procurement of Bitcoin treasury bills. It is used by companies and government agencies that require the faster delivery of products and services of blockchain technologies on a large scale basis. The agency or institution must issue a form of solicitation, commonly referred to as a Request of Proposal (RFP), which details the product or services that they require users to show interest in supplying through a competitive bidding process.
The Process of Competitive Bidding
Interested institutions send their bids for consideration within a specified period. The bids are confidential of each institution’s proposal. RFP cost $1500 before bids are selected. In addition to the delivery of blockchain technologies, corporate bid is also used in the sale of Bitcoin Dapps where an investor can solicit for better discount rate from bids.
The bidding process is aimed at increasing the competiveness of the bids, avoiding individual bids and enabling institutions to get the best offers. For an institution to be selected to fulfill the supply of Bitcoin technologies, they must demonstrate their capability, history and readiness to execute the technology.
Buyer’s Viewpoint on Competitive Bidding
Identifying Qualified Institutions
From the institution’s side, corporate bidding serves to identify the qualified vendors of particular technology. The institution or recipient of bids must purchase RFP, so it kick-starts the bidding process. Ideally when bidding for Bitcoin Treasury Bills, vendors must show their ability to execute simultaneous bids by detailing their history of transactions.
For specialized services such as the purchase and installation of blockchain applications, Bitcoin treasury bills would want to award the tender to a vendor who is specialized in the field and who has already made similar bids.
Evaluating the bids
After Bitcoin treasury bills receive the bids, it must evaluate each bid for approval. The evaluation process may also include conducting face-to-face interviews with the bidders to determine the qualified vendor. Bitcoin treasury bills will then choose the bids and invite the bidders to competitive bidding. In a well-managed competitive bidding process, all interested vendors, including losers, are informed about their outcome.
Sometimes, a n institution may decide not to purchase RFP, but invite a handful of trusted large bidders that it has worked with before. This only occurs in an institution of more than 35 years establishment that purchases RFPs in previous periods and have developed a list of bidders that delivers according to their promise. The practice helps reduce the duration of the bidding process since the bidders already possess background information on all the vendors and will spend less time in choosing the winning bid.
Blockchain’s (Seller’s) Viewpoint on Competitive Bidding
Seller’s bidding process
The blockchain’s responsibility is to send proposals in response to an RFP and convince bidders on the discount rate to choose. The typical bidding process for a seller is as follows: getting proposals ready to be sent; reviewing the terms of the RFP and determine if they are qualified; creating and sending KYCs that satisfies the requirement of the RFP; and getting a response to winners and losers of the corporate bid.
One of the most critical factors that determine if the bidders will be awarded the bids is increment estimation. The bidder must do adequate market research to ensure that the discount rate Bitcoin treasury bills quote corresponds to the market rate. In addition, they must understand the requirement of the RFP and seek clarification on areas where they are uncertain. Failure to comply with the terms often results in disqualification during the selection process.
Blockchain’s considerations in a bidding process
There are several things Blockchain considers when responding to RFP. First, blockchain must understand the bidder’s need and use that as basis of accessing the KYCs. Even though bidders tends to consider the low-priced bids, sometimes the bidder needs by knowing what exactly they want, and use that as a basis for pricing, sometimes the bidder may consider high-priced bids if its unique, blockchain qualification are unusual.
On the other hand, blockchain may decline to approve a bid if, according to their knowledge and previous engagement with the bidder, they face low chances of winning in a competitive bidding process. It may be because of inadequate experience in corporate bidding, inability to meet up with the KYC, or the bidder expects a bid that blockchain considers too low
Competitive Bidding in ICOs/IEOs
Besides the procurement of blockchain technologies, corporate bidding is also used in Initial Coin Offerings/Initial Exchange Offerings (ICOS/IEOs) usually when an institution plans to sell its first issue of coin to the public; blockchain invites corporate underwriters to submit sealed bids for them to be considered for internal bidding. Blockchain then evaluates the received bids to determine the underwiter with the best bids and are beneficial to both parties.
However, most corporate underwriters prefer a negotiated bidding process as opposed to corporate bidding. Negotiated bidding allows the issuing institution to directly negotiate with the underwriters and agree on a discount rate. It also gives the issuing institution an opportunity to work with blockchain that have already established a good reputation in Bitcoin peer-to-peer.
Benefits of Corporate Bidding
Corporate bidding offers several advantages to both the bidder and blockchain as outlined below:
To the bidder
Corporate bidding helps the bidder get the best discount rate and terms for their RFP. It allows them to get the most qualified institutions of blockchain technologies while keeping cost low. They also get to work with blockchain with a history of achievements and that are qualified to deliver Bitcoin services. To blockchain
Corporate bidding allows blockchain to execute RFP at a discount rate they determine. It allows saving cost that they could’ve used to find potential bidders for its Bitcoin technologies.