Richmond, VA · Open Procurement Data

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💡 Procurement Terms Explained

New to government contracting? Here's what the jargon actually means.

IFB Invitation for Bid — the City posts exactly what they need and picks the lowest qualified price. No negotiation. You either meet the requirements or you don't.

RFP Request for Proposal — the City describes a problem and asks vendors to propose a solution. Price matters but so does your approach, experience, and team. More flexible than an IFB.

MBE / WBE Minority Business Enterprise / Women Business Enterprise — official certifications that identify your business as minority or women-owned. Having one can give you an advantage on certain City contracts.

Subcontractor A business hired by the primary contractor to do part of the work. If you're not ready to bid as the lead, partnering as a subcontractor is a great way to get your first government contract experience.

Bonding A financial guarantee that you'll complete the work as promised. Many construction and service contracts require a surety bond. Check with your insurance agent — it's often easier to get than people think.

Pre-Bid Meeting A meeting the City holds before bids are due where you can ask questions about the contract. Attendance is sometimes mandatory. Always go if you can — it signals you're serious and lets you hear what competitors are asking.

Scope of Work The detailed description of exactly what work needs to be done, when, and to what standard. Read this carefully before bidding — it defines what you're agreeing to deliver.

BPOL License Business, Professional and Occupational License — required to do business in the City of Richmond. You need this before you can be paid by the City. Apply through the Finance Department.

Vendor Registration Signing up in the City's supplier portal so you can receive bid notifications and get paid. This is your very first step — you cannot bid or receive payment without it.

Notice to Proceed The official go-ahead from the City to start work. Never start work on a City contract without this — even if you've signed the contract. Work done before this notice may not be reimbursed.