Belt Auction - What are the advatages and disadvantages of buying business products based on sealed competitive bids?

What are the advatages and disadvantages of buying business products based on sealed competitive bids?

What are the advatages and disadvantages to sellers? Should companies always give the business to the lowest bidder? Why or why not?

The bidding process by itself is not enough. If the requirements have been defined well and the only concern is costs then the smallest bid is the answer. But I am sure that the bidder could have a different vocabulary or might not fully expose their deficiencies. At the same time, the requester's requirements could diff from has been outlined. I suggest that you pick the bottom three (price wise) and then dig into details.