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Do you agree that Price Negotiations with bidders after tender opening should not be allowed?

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Question added by Nadeem Asghar , Supply Chain Consultant/Trainer , Independent Practitioner
Date Posted: 2016/10/20
Terrence Walmsley
by Terrence Walmsley , Owner , The Awesome Group of Companies

It would not be considered normal practice and may even fall under the guise of 'collusion ', it doesnt mean that it doesn't happen. As long as the discussions are on equal footing with all tender submissions and there is no bias toward any one supplier, then it could be done.

Keep in mind though, it is not considered the right process and may negatively impact on the business. 

The way around this is to ensure your tender specifications are detailed and precise. Then if you have structured your assessment ratings correctly, price is simply another consideration. Sometimes there are more important criteria.

Md Fazlur Rahman
by Md Fazlur Rahman , Procurement Specialist , Engineering and Planning Consultants Ltd

Thanks for invitation.

In strict sense, Price negotiation after bid opening is not acceptable.

Rationale: 

Normally, it is stated in all bid document that the quoted price by the bidders shall be firm and final. Now, If you want to negotiate with the lowest bidder, it will go against the stated bid terms and conditions. Moreover negotiation will raise the question of integrity of procurement professional and transparency and fairness of the bidding process will be lost. 

Talha Mastan
by Talha Mastan , Mechanical Engineer – Static Equipment , Doha Petroleum Construction Company ltd

Depends upon Company Policy & Procedure. In certain cases 1st approved bidder is unable to honor Contractual requirements, in this case second bidder with valuable proposition becomes eligible, its about transparency, so basically yes. 

Mohamed Diab
by Mohamed Diab , Senior Procurement officer , KS Drilling

I belive that it depends on the company policy ... price negotiations can be aginast the international practice for open tenders... how ever its allowed in case the winner of the bid refuse to continue with the awarding for any circumstances ... in such a case a price negotiates can be open with the second winner..... to reduce his price to the lowest in case of the lowest price criteria..

Ghulam Farid
by Ghulam Farid , Contracts Officer , Abu Dhabi Company for Onshore Petroleum Operations (ADCO)

Not at all, then whatbis thebpurpose of competitive bidding.

Vikas Gaba
by Vikas Gaba , Head Strategic sourcing and Supply chain , UM lohia 2 wheeler Pvt.Ltd

Yes 

after bidding it should not be allowed

jasmina malnar
by jasmina malnar , Head of Marketing and Indirect Procurement , Hrvatski telekom

I do not see why not. It all depends on how you structured the process. In principle, if all qualified vendors who submitted their bids are invited to negotiation table and asked to submit their revised proposals after negotiations, and if all vendors were treated equally, it is perfectly legitimate.

Elke Woofter
by Elke Woofter , Project Assistant , American Technical Associates

I agree with Mr. MD Fazlur Rahman .... when a bit has been entered, the vendor should not rebit to gain an advantage ... it is most the time not the lowest bit which will get the contract, but the one which makes most sence ... delivering the best quality in a timely manner.... also the reputation of the vendor has to be a consideration ....

Catherine Almacin
by Catherine Almacin , AutoCad Operator and Estimator (Professional License Engineer) , Provincial Engineers Office

i'm disagree, it is not acceptable in the procurement. We need to follow what was the EPC/ABC recommended.

Deleted user
by Deleted user

Yes, Price negotiations with bidders should not be allowed after tender opening. The price should be firm as negotiated before the tender opening and should be valid during the currency of the project, if awarded to the bidder.

Roselle Alfonso
by Roselle Alfonso , Purchasing Manager , Kelly Steel Engineering FZ LLC

I believed that price negotiation should be considered after bid opening on the selected vendor, both parties could have meeting before finalizing the contract to the vendor, in terms of price, specifications, delivery, payment & other terms and conditions. 

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