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Public held companies have no legal requirement to obtain competitive bids. However, it is a good common practice to gather competetive bids; and, may therefore be policy and procedure in most companies. Bidding is also a good idea in a public company to give the shareholders a sense of security that the company follows good business practices and not wasting money by awarding over-priced contracts.

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Q: Are publicly held companies required to obtain competitive bids for services?
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