Competitive negotiation refers to a procurement method in which the purchaser or agency negotiates with multiple suppliers (at least three) and finally determines the winning supplier.
The characteristics of the competitive negotiation procurement method are:
First, it can shorten the preparation period and make the procurement project take effect faster.
The second is to reduce the workload and eliminate a lot of bid opening and bidding work, which is conducive to improving work efficiency and reducing procurement costs.
Third, both supply and demand parties can conduct more flexible negotiations.
Fourth, it is conducive to the protection of national industries.
Fifth, it can encourage suppliers to consciously apply high technology to purchased products, and at the same time transfer procurement risks.
Basic procedures
(1) Procurement budget and application: The purchaser prepares the procurement budget, fills in the procurement application form and puts forward the reasons for adopting competitive negotiations, and submits it after review by the superior authority Procurement Management Department of the Finance Bureau.
(2) Procurement approval: The financial administrative department determines the procurement method of competitive negotiation based on the procurement project and relevant regulations, and determines the procurement channel-whether it is entrusted procurement or self-procurement.
(3) Selection of agency: The procedure is the same as that of public bidding.
(4) Form a negotiation team.
(5) Preparation of negotiation documents: The negotiation documents should clarify the negotiation procedures and content, the terms of the draft contract, and the criteria for evaluating the transaction.
(6) Determine the list of suppliers to participate in negotiations: Based on the procurement needs, the negotiation team will identify and invite no less than three suppliers from the list of suppliers that meet the corresponding qualifications for negotiation.
If there are only two suppliers that submit bidding documents during the bidding process or substantively respond to the requirements of the bidding documents for a public bidding project of goods or services, the purchaser and procurement agency shall apply for approval through the financial department at the same level. After approval by the department, competitive procurement negotiations can be conducted with the two suppliers.
(7) Negotiation: All members of the negotiation team will negotiate separately with each invited supplier. During the negotiation, neither party shall disclose the technical data, prices and other information of other suppliers related to the negotiation.
If there are substantial changes to the negotiation documents, the negotiation team shall notify all suppliers participating in the negotiation in writing. The order of negotiation can be determined in the reverse order of bids submitted by suppliers or by drawing lots.
(8) Determine the transaction supplier: After the negotiation, the negotiation team should require all suppliers participating in the negotiation to make final quotations within the specified time. The purchaser will select the transaction candidates from the negotiation team based on their compliance with the requirements. The supplier will be determined based on the principle of equal procurement requirements, quality and service and the lowest quotation, and the results will be notified to all unconcluded suppliers participating in the negotiation. Requiring suppliers to quote early can help prevent bid rigging.
(9) Review announcement: The disclosure content includes the list of suppliers, amendment terms of negotiation documents, quotations of each supplier, and the list of negotiation experts.
(10) Issue a transaction notice: If there is no objection after the publicity period expires, a transaction notice can be issued.
Reference: Baidu Encyclopedia-Competitive Negotiation