Which statement best describes competitive bidding?

The statement that best describes competitive bidding is that it is a common policy for many purchasers. Competitive bidding is a procurement process that allows multiple suppliers to submit proposals or bids for a specific project or contract. This process is widely adopted across various sectors, including public and private industries, because it fosters a transparent environment where buyers can compare offerings based on price, quality, and service.

By utilizing competitive bidding, purchasers can often secure better pricing and terms, as suppliers are motivated to present their most advantageous proposals to win the contract. This method is not limited to any specific type of buyer, making it a versatile strategy in the purchasing landscape.

In contrast, the other options touch upon specific contexts or limitations of competitive bidding. While competitive bidding may facilitate long-term relationships (contradicting the nature of competition), it is not solely aimed at doing so. It is also applicable beyond government contracts and does not exclusively rely on fixed pricing models, as some bids might allow for variable pricing based on different terms or conditions. Thus, the best descriptor of competitive bidding among the choices is that it is a common practice for many purchasers.