I need to create a webpart whereby users can upload their bids to a
library so that our client can view the documents. However, to keep
bids confidential - the users should not be able to view the contents
of the library nor do we want them to access the Toolbar items(ex. New,
Actions, etc).

I was planning to make the library portion of the webpart hidden and
insert a content editor webpart with the words "Upload Documents" these
words would be linked to the Upload page I get when using the library
toolbar. I need to test this to see if actually will work but wanted
to see if there was an easier way. I also thought of permissions but I
can't find a combination of Contribute but No Read for a particular
library. The users also need to be able to read all other sections of
the site.