Negotiated Tender

A negotiated tender may be accomplished by an individual or group designated by the owner and usually comprising technical, financial, and legal personnel, meeting with contractors that have submitted bids on the restricted "pre-qualifying" basis described above in section 7.9.2. The purpose of meeting is to bring down the prices submitted in their bids by means of a process of having them bid amongst themselves. Amended price offers may be submit­ted in one-on-one meetings with the negotiating committee by all the final bidders together in the same room with the committee. The process concludes with the owner receiving and accepting the commmittee’s recommendation.

This type of tender expedites the launch of projects whose major costs are centered on a small set of essential goods or services; or whose award has come down to choosing between two final-bid contenders charging more-or-less the same price in a circumstance where they and-or the owner cannot commit any more time or money to redoing the tender:

• Consultancy work, which requires technicians, specialists, or experts

• Things that only exist for one contractor

• Things monopolists manufacture or import

• Things that cannot be identified exactly

• Procurement, general contracting, and transporta­tion services and the delivery of services, which are characterized by urgency

The negotiated tender procedure itself is most often used to over­come a restricted tendering process, by empowering a designated negotiating committee to proceed to negotiate the actual terms of the contract within strict guidelines prior to its being awarding the contract. The negotiation may also be advertised, and the committee of negotiations will do the negotiation with all suppliers and con­tractors, and their discussion in public meetings is open to suppliers, contractors, or their representatives. The committee will then submit its recommendations to senior management, depending on what the committee result for direct award to successful contractor.