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New government orders are published periodically and there is a 5-day window in which companies can place their bids. The bid is for how much is the company able, or willing to, fulfill the order. The bids remain secret and can be changed or cancelled anytime before the bidding period ends. The company with the lowest bid wins, obviously, the government wants to save money. Only companies level 20+ (Corporation) can place bids. The company value is also taken into account when considering if you will be able to fulfill the order. You can still participate as a subcontractor if your level is too low.
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