What Is a Competitive Negotiation?

Competitive negotiation refers to a procurement method in which the purchaser or agency negotiates with multiple suppliers (not less than 3) and finally determines the winning supplier.

Competitive negotiation

The more important topic behind the topic of appropriate application of competitive negotiation is how to use it once applicable? "

(1) Goods and services within the centralized procurement catalogue established in accordance with the law and which have not reached the standard for public bidding;

(2) Goods and services other than the centralized procurement catalogue established in accordance with the law, above the procurement quota standards, and not meeting the public tender amount standards;

(3) Goods and services that have reached the public tender amount standard and approved the use of non-public tender methods;

(4) Government procurement projects other than construction projects that must be invited for bidding in accordance with the Bidding Law and its Implementation Regulations. ^[1]

(1) If there is no supplier bid or qualified bid after the bidding, or re-tendering fails to be established;

(2) The technology is complex or special in nature, and detailed specifications or specific requirements cannot be determined;

(3) Non-purchaser's foreseeable reasons or delays caused by non-purchasers can't meet the urgent needs of users;

(4) The total price cannot be calculated in advance due to reasons such as the time and quantity of art procurement, patents, know-how or services cannot be determined in advance. ^[1]

(1) Procurement budget and application: The purchaser compiles the procurement budget, fills out the procurement application form and puts forward the reasons for using competitive negotiation, and submits it to the procurement management department of the Finance Bureau after review by the superior authority.

(2) Procurement approval: The competent financial administrative department determines the procurement method of competitive negotiation according to the procurement project and related regulations, and determines the procurement route-whether it is entrusted procurement or procurement by itself.

(3) Selection of agency: The procedure is the same as that of public bidding.

(4) Form a negotiating team.

(5) Preparation of negotiation documents: Negotiation documents should clearly define the negotiation procedures and content, the terms of the draft contract, and the criteria for evaluating transactions.

(6) Determine the list of suppliers involved in the negotiation: The negotiating team will determine and invite no fewer than three suppliers from the list of suppliers that meet the corresponding qualifications to negotiate based on procurement requirements. If there are only two suppliers for the procurement of goods and services for public bidding, the tender documents are submitted during the bidding process, or there are only two suppliers that have been assessed to respond substantially to the requirements of the bidding documents, the purchaser and procurement agency may agree with the two after approval by the financial department at the corresponding level Suppliers negotiate competitive procurement.

(7) Negotiation: All members of the negotiating team will negotiate with each invited supplier separately. During the negotiation, neither party shall disclose technical data, prices and other information of other suppliers related to the negotiation. If there are substantial changes in the negotiation documents, the negotiation team shall notify all suppliers participating in the negotiation in writing. The negotiation order can be determined in the reverse order of the submission of bid documents by the supplier or by drawing lots.

(8) Determine the supplier of the transaction: After the negotiation is over, the negotiating team shall require all suppliers participating in the negotiation to make a final quotation within the prescribed time. The principle of the lowest quotation determines the closed suppliers, and the results are notified to all non-closed suppliers participating in the negotiation. Requiring suppliers to quote as early as possible helps prevent cross bidding.

(9) Evaluation and publicity: The publicity content includes the list of the suppliers who have concluded the transaction, the amendments to the negotiation documents, the quotations of each supplier, and the list of negotiating experts.

(10) Issuance of the transaction notice: after the publicity period has expired, a transaction notice can be issued. ^[1]

The 38th paragraph of the "Government Procurement Law" provides: (1) The establishment of a negotiation team. The negotiating team consists of a singular number of three or more representatives of the purchaser and relevant experts, and the number of experts shall not be less than two-thirds of the total number of members.

The negotiating team is the main body that negotiates with the supplier on behalf of the purchaser. It is an organization that represents the interests of the purchaser, reflects the needs of the purchaser, and has considerable professional and technical levels and negotiation skills. The role of the negotiating team is determined by the characteristics of the competitive negotiation procurement method.

According to this procurement method, the purchaser must conduct face-to-face negotiations with the suppliers invited to participate in the negotiations to clarify the detailed technical specifications and performance standards of the purchase target, understand the nature or risk of the purchase target, and propose based on this Closer to the actual price. The negotiating team shall include representatives of the purchaser and relevant experts, and the number shall be a singular number of three or more, in which the number of experts shall not be less than two-thirds of the total number of members.

The representative of the purchaser should be a natural person who has the corresponding procurement expertise and skills, has rich government procurement practice experience, and is authorized by the purchaser to be able to engage in procurement activities on his behalf. These people are usually trained government responsible for procurement staff member. Relevant experts are those who are invited by the purchaser according to the specific technical requirements and performance characteristics of the purchase object, and have a high level of professional knowledge and practical experience in a certain field. These experts are usually members of an industry association or professionals recommended by an industry association.

By inviting such an expert as a member of the negotiation team, the purchaser can better grasp the detailed technical specifications, performance standards, and prices of the purchase object by virtue of his expertise, and finally negotiate with a supplier on ideal conditions. In order to truly play the role of experts and fully reflect their opinions, their number must reach an absolute majority of the total number of members of the negotiating group, that is, two-thirds of the total number of members. Finally, the number of negotiating teams must be singular, a provision that allows the negotiating team to form a majority when it comes to a relevant resolution.

Negotiation documents should at least clarify the negotiation procedures, the content of the negotiations, the terms of the draft contract and the evaluation criteria. Negotiations must be announced on the government procurement information release media designated by the financial department. The deadline for submission of the announcement to the negotiation documents shall not be less than 5 days, and the technically complicated projects with the purchase amount of more than 3 million yuan shall not be less than 10 days.

Negotiation documents should contain at least the content required by Article 38 (2) of the Government Procurement Law, but should usually include:

(1) Invitation to negotiate;

(2) Necessary information for suppliers (including sealing, signing and stamping requirements);

(3) Quotation requirements, preparation of bidding documents, and payment methods of negotiation deposits;

(4) Negotiating the qualifications that suppliers should submit,

Government procurement and competitive negotiations

Competitive negotiation in government procurement refers to a procurement method in which the purchaser or agency negotiates with multiple suppliers (not less than three) and finally determines the supplier to be concluded. The core is to have competition (no less than three suppliers participating in the negotiations), and the second is to have negotiations (that is, the final result must be determined on the basis of negotiations). Without these two articles, all behaviors and results are unreasonable, irregular, or even illegal, and they should all be stopped.

Competitive negotiation is one of the government procurement methods stipulated in the "Government Procurement Law". Under special circumstances, this procurement method has the advantages of short procurement cycles, low procurement costs, etc. and is convenient and flexible. However, experts reminded that in the specific implementation process, it must be carefully grasped and operated accurately. When the buyer and the reviewing expert appear to be judgment, talk or judgment but not talk, the government procurement agency must It must be stopped in a timely manner to ensure the seriousness of government procurement, or it will easily cause questions and complaints.