What term describes a proposal sent out to potential vendors for an item in which the vendor offers a price?

The term "bid" specifically refers to a proposal submitted by vendors in response to a request for specific goods or services. When a business or organization seeks to purchase an item, it often invites multiple vendors to submit their bids, which include the price and terms they are willing to offer. This competitive bidding process helps the purchasing entity evaluate different offers and select the most advantageous one based on cost, quality, and other criteria.

The nuance of a bid is that it generally involves a formal submission process and is often used in contexts such as public contracts, construction projects, and significant procurements. A bid not only includes pricing but may also detail how the vendor intends to fulfill the requirements outlined in the proposal. This differentiation helps clarify why "bid" is the correct term in this context.