Final answer:
A closed bid is a type of bid that is restricted to a select group of prescreened manufacturers. It is used for projects that require specialized expertise and ensures that only qualified companies are considered. An example is a government agency using a closed bid process to select a manufacturer for military vehicles.
Step-by-step explanation:
The type of bid that is restricted to a select group of prescreened manufacturers is known as a closed bid. In a closed bid, the bidding process is limited to a specific group of manufacturers that have been pre-qualified or prescreened by the contracting authority.
This type of bid is often used for projects that require specialized expertise or for contracts that are highly competitive. By restricting the bidding process to a select group of manufacturers, the contracting authority can ensure that only qualified and experienced companies are considered for the project.
For example, a government agency seeking to build a new military vehicle may use a closed bid process to select a manufacturer who has a proven track record in designing and producing military-grade vehicles.