Competitive negotiation is a procurement method in which the purchaser or agent negotiates with a number of suppliers (not less than three) to determine the winning supplier.
The characteristics of the competitive negotiation procurement method are:
Firstly, it can shorten the preparation period, which can make the procurement project work faster.
The second is to reduce the workload, eliminating a large number of bid opening, bidding work, which is conducive to improving efficiency and reducing procurement costs.
Third, the supply and demand sides are able to conduct more flexible negotiations.
Fourth, it is conducive to the protection of national industry.
Fifth, it can motivate suppliers to consciously apply high technology to the procurement of products, while at the same time transfer the procurement risk.
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 negotiation, and submits it to the Procurement Management Department of the Finance Bureau after examination and approval by the higher authorities.
(2) Procurement Approval: The financial administrative department determines competitive negotiation as a procurement method according to the procurement project and relevant regulations, and determines the procurement route - whether it is entrusted or self-procurement.
(3) Selection of agency: the procedure is the same as that for public bidding.
(4) Formation of the negotiation team.
(5) Preparation of negotiation documents: the negotiation documents should specify the negotiation procedure and content, the terms of the draft contract and the criteria for evaluating the transaction and other matters.
(6) Determining the list of suppliers to participate in the negotiations: the negotiation team, in accordance with the procurement requirements, from the list of suppliers meeting the appropriate qualifications to determine and invite no less than three suppliers to negotiate.
If there are only two suppliers submitting bidding documents or evaluated as substantially responding to the requirements of the bidding documents during the bidding process in the case of a procurement project of goods and services open to public bidding, the purchaser and the purchasing agent may, with the approval of the financial department of the current level, carry out a competitive negotiation for the procurement of the goods and services with the two suppliers.
(7) Negotiation: all members of the negotiation team to focus on negotiations with each invited supplier separately. During the negotiations no party shall disclose technical data, prices and other information of other suppliers relevant to the negotiations.
If there are substantive changes in the negotiation documents, the negotiation team shall notify all suppliers participating in the negotiations in writing. The order of negotiations may be determined in the reverse order of submission of tender documents by suppliers or by drawing lots.
(8) Determination of the supplier of the transaction: after the conclusion of the negotiations, the negotiation team shall request all suppliers participating in the negotiations to make a final offer within a specified period of time, and the purchaser shall determine the supplier of the transaction from the candidates for the transaction proposed by the negotiation team on the basis of the principle of conformity with the procurement requirements, equal quality and service and the lowest price quotation, and shall notify the result to all the suppliers participating in the negotiations that have not been awarded the contract. Requiring suppliers to quote as early as possible helps to prevent bid-rigging.
(9) evaluation of publicity: publicity includes the list of successful suppliers, the negotiation documents to amend the terms and conditions of each supplier's offer, the list of negotiation experts.
(10) issued a notice of the transaction: no objection to the expiration of the publicity period, you can issue a notice of the transaction.
Reference:Baidu Encyclopedia-Competitive Negotiation