Bid negotiation is a commonly used way of project procurement, which refers to the process in which the tenderer and the bidder negotiate on the basis of the bidding documents on the bid price, technology, contract terms and other issues to reach an agreement and sign the contract. Bid negotiation is different from open bidding or invitation to bid, it is not open and competitive, but a kind of negotiated procurement, so it is not regulated by the Tendering and Bidding Law of the People's Republic of China.
The advantages of bidding are that it can save time and money, improve efficiency and flexibility, and is suitable for procurement in small project scale, high technical requirements, less market ** or emergency situations. The disadvantage of the negotiation is that there may be risks such as benefit transfer, inflated quality, and reduced quality, so it is necessary to strictly control the conditions and procedures of the negotiation to ensure the fairness and reasonableness of the negotiation.
In order to help you better understand and use the way of bid negotiation, this article will introduce the procedures and steps of bid negotiation from the following aspects:
Bid negotiation is not a statutory bidding method, so it is not applicable to projects that must be tendered as stipulated in Article 3 of the Tendering and Bidding Law of the People's Republic of China, nor is it applicable to projects that are voluntarily procured by bidding in accordance with Article 2 of the Tendering and Bidding Law of the People's Republic of China. Bid negotiation can only be used in the following situations:
The technicality, specialization or complexity of the project is very high, and only a few companies can meet the procurement needs, or only one company has patents or proprietary technology
The scale, quantity or amount of the project is small enough to attract more than one company to compete, or the cost and time of the tender exceeds the value of the project
The time constraints of the project do not allow for the normal bidding process, or urgent procurement is required after the bidding fails;
The procurement of the project has been determined through bidding or other means, but some of the contents need to be modified or supplemented.
The conditions for the negotiation of the bid shall be judged by the tenderer or the tendering agency entrusted by it according to the actual situation and procurement policy, and explained in the procurement documents. The conditions for bidding shall be objective, reasonable and necessary, and the bidding shall not be used as an excuse to circumvent the legal provisions and supervision and management of bidding.
The process of negotiating bids generally includes the following steps:
The tenderer or the tendering agency entrusted by it organizes the preparation of procurement documents, including the basic information of the project, technical requirements, contract terms, bid evaluation standards, bid negotiation procedures, etc.;
According to the requirements of the procurement documents, the tenderer or the tendering agency entrusted by it shall determine the list of bidders who are qualified and able to participate in the negotiation of the bid, generally not less than three, or only one;
The tenderer or the tendering agency entrusted by it issues a bidding invitation to the shortlisted businessmen, requiring them to submit the bidding documents within the specified time, including the technical plan, qualification certificate, etc.;
The tenderer or its entrusted bidding agency shall conduct a preliminary review of the bidding documents, confirm the qualifications of the bidder and the compliance of the bidding documents, and exclude the bidding documents that do not meet the requirements;
The tenderer or its entrusted bidding agency and the shortlisted bidder negotiate the bid, generally in a separate or alternate manner, on the key issues in the bidding documents, such as technology, contract terms, etc., and strive to reach an agreement;
The tenderer or its entrusted bidding agency shall determine the best bidder according to the bid evaluation criteria and the results of the bid negotiation, and sign a contract with it, and notify other bidders of the results of the negotiation
The tenderer or the tendering agency entrusted by it will record the bidding process and results, and keep relevant documents and information for subsequent supervision and audit.
The steps of bid negotiation refer to the specific operation methods that should be followed when the tenderer or its entrusted bidding agency negotiates the bid with the first consultation. The steps of bid negotiation generally include the following aspects:
Preparations: The tenderer or the tendering agency entrusted by it shall prepare for the negotiation of the bid in advance, including determining the time, place, personnel, method, content, objectives, etc., as well as preparing the documents, materials, tools, etc. for the negotiation
Opening remarks: The tenderer or the tendering agency entrusted by it shall, at the beginning of the negotiation, introduce the purpose, procedures, rules, etc. of the negotiation to the bidder, as well as the needs and expectations of the tenderer for the project, and also understand the situation and opinions of the tenderer, and establish good communication and trust
Information exchange: the tenderer or its entrusted bidding agency shall conduct full information exchange with the first businessman, and inquire, explain, explain and evaluate all aspects of the bidding documents, so that both parties have a clear and comprehensive understanding of the technology, quality and risk of the project
Problem solving: The tenderer or the tendering agency entrusted by it shall discuss and negotiate with the contractor on the existing problems, and seek solutions acceptable to both parties, such as adjusting the tenderer, improving the technology, modifying the contract, etc., and also pay attention to protecting the legitimate rights and interests of both parties and the balance of interests;
Reach an agreement: the tenderer or its entrusted tendering agency shall reach an agreement with the contractor after solving all the problems, and record the content of the agreement in writing, and both parties sign or seal to confirm as the basis and supplement of the contract;
Conclusion: The tenderer or the tendering agency entrusted by it shall express its thanks and congratulations to the merchant at the end of the negotiation, and also remind the merchant to pay attention to the subsequent contract signing, performance, acceptance and other matters, as well as how to deal with possible disputes and changes, and finally say goodbye politely.
Bid negotiation is a flexible and effective way to procure projects, but there are a few things to be aware of:
Precautions: Bid negotiation is a flexible and effective way of project procurement, but there are also some risks and challenges, which require the tenderer or its entrusted bidding agency to pay attention to the following aspects:
Choose the right bidder: The bidder should have a good reputation, qualifications, technology, experience, etc., to meet the needs and standards of the project, and at the same time to avoid conflicts of interest or related transactions, to ensure the fairness and transparency of the negotiation;
Maintain the competitiveness of the negotiation: the competitiveness of the negotiation is not as good as the bidding, but it cannot be completely abandoned, and the ability to participate in the negotiation should be invited as much as possible, or the bidding should be negotiated in turns or multiple rounds to increase the pressure and effect of the negotiation;
Adhere to the principle of bid negotiation: The principle of bid negotiation refers to some basic rules that should be followed in the process of bid negotiation, such as integrity, equality, mutual benefit, voluntariness, confidentiality, etc., which cannot violate laws and regulations or violate public order and good customs, nor can it damage the legitimate rights and interests of both parties or the balance of interests;
Record the process of bid negotiation: The process of bid negotiation should be completely recorded, including the time, place, personnel, method, content, results, etc., as well as the signature or seal of both parties, for follow-up supervision and audit, and at the same time, it is also necessary to report the situation and results of the bid negotiation to the relevant departments or institutions in a timely manner.