When state and local governments are in the market for specific products or services, they put out requests for sealed bids. There was a time when the only type of bids they would accept were those that were typed up and signed in blue, black or blue/black ink. The signature was required to make the bid legal as per the appropriate laws, rules and regulations. Today, bidders are allowed to place their bids online using a digital signature.
The Digital Signature is Considered Legally Binding
While the digital signature is considered not only legal for submitting a bid for a state or local government contract, it must be submitted at the same time as the bid documentation. This way any possibility of dispute with regards to the submission can be eliminated. As the bid is digitally signed in this manner, it makes it very easy to see if anyone has attempted to alter the bid once it has been submitted, this is a very important detail in such a competitive market.