A bid is an offer made by an individual or organization to purchase goods or services at a specified price. Bids are commonly used in auctions, where participants compete to buy items by proposing higher amounts. They can also occur in business contexts, such as when companies submit proposals to win contracts for projects. In competitive situations, such as government contracts, bidders must follow specific guidelines and deadlines. The process often involves submitting detailed information about qualifications and pricing. The entity receiving the bids evaluates them based on criteria like cost, quality, and experience before selecting a winner.