A bid made by a bank that is a primary dealer in the U.S. Treasury auction. These banks purchase large amounts of securities at the most competitive rate they can get. In contrast, non- competitive bids are submitted by individual investors who are willing to take whatever price is offered because their purchase is too small to be competitive.
The definition of a competitive bid is an offer by a qualified worker to do a job at a certain price, with the award of the job usually going to the qualified worker who has the lowest price.
An example of a competitive bid is when a government building project is started and a qualified construction company submits an offer to do it for a certain price.