Restricted tendering is a procurement method that limits the request for tenders to a select number of suppliers, contractors or service providers. This method of procurement is also called:
Limited Bidding and Selective Tendering.
Although considered a competitive procurement method, competition is limited to only firms shortlisted or invited by the procuring entity. A process should be in place for arriving at the number and specific firms that will be invited; that number however is dependent on the stipulations of the public procurement legal framework. Any decision to use the Restricted Tendering procurement method must conform to the policies and procedures governing the procurement system
A basic characteristic of this method is that competition is confined to a certain number of firms either because only a few firms are qualified to fulfill the specific type of requirement, or certain conditions warrant the use of a limited number of firms in order to reduce the time and cost of the selection process.