ELI5 Why do bids on government contracts have to be kept private, when bids at auctions are public? Wouldn't it work the same way in reverse?
If the government puts out a contract with the goal of getting the best deal, and companies respond with bids, why can't the companies know about eachothers bids, and enter a bidding war downwards, the same way buyers enter a bidding war upwards when goods go up for auction?
I understand the cheapest supplier may not be the best quality, but it seems like you could use other rules to prevent that without interfering with this downward bidding war.
I understand that companies could collude and refuse to participate in this bidding war, but that would mean every company but one of them losing the contract.
I feel like there must be a really obvious answer that I am missing here, any help is appreciated.