What term describes a procurement method where bids are opened together and an order placed with the lowest bid?

The correct term that describes a procurement method where bids are opened together and an order is placed with the lowest bid is "Formal, competitive bid buying." This method is characterized by a structured process in which suppliers submit sealed bids in response to a request for proposal (RFP) or invitation to bid (ITB). The bids are evaluated based on predetermined criteria, and the contract is awarded to the lowest qualified bidder. This approach ensures transparency, competitive pricing, and adherence to regulations, making it a preferred method in many institutional settings.

Other procurement methods mentioned do not capture the specific characteristics of this formal process. Informal, open market purchasing typically involves less rigorous procedures and may not always involve comparing sealed bids; it is often based on verbal quotes or quick comparisons. Future contracts pertain to agreements made in advance for goods or services that will be delivered at a later date, which is different from the bid evaluation process. Prime vending refers to a sourcing strategy where the organization selects one vendor to supply a significant share of a specific product category, rather than comparing multiple bids through a formal bidding process.