Reg. 29 (PCR 2015)

Competitive procedure with negotiation

In: Procure > Finalise and publish procurement pack

Overview

This regulation sets out the rules that apply to competitive procedure with negotiation procurements. This includes the rules relating to minimum time limits that a contracting authority may set for initial requests to participate, in addition to minimum time limits for the receipt of tenders. It also includes rules on the content of procurement documents for contracting authorities.

As per regulation 65 PCR 2015 (reduction of the number of otherwise qualified candidates to be invited to participate), a minimum of three suppliers must be shortlisted to participate in the procurement; provided that at least three suppliers meet the relevant selection criteria, including the minimum technical and professional ability standards.

For those candidates or tenderers invited to participate in the procurement, regulation 29 (i.e. this regulation) states that initial tenders must form the basis of subsequent negotiations to improve their content. The regulation also allows a contracting authority to award a contract on the basis of the initial tenders, without negotiation; but only in circumstances where the contracting authority has indicated in the contract notice that it reserves the possibility of doing so.

With the exception of the final tender, negotiations may be conducted by the contracting authority in connection with the initial and all subsequent tenders submitted candidates or tenderers. The procedure may also take place in successive stages in order to reduce the number of tenders to be negotiated by applying the award criteria specified in the contract notice or procurement documents.

Objective at this commercial stage

All information required by this regulation (i.e. regulation 29) must be included within the procurement documents. This includes information relating to the timescales for submission of requests to participate and tenders, confirmation as to whether the procurement will be conducted in successive stages to reduce the number of bidders and whether the contracting authority reserves the right to award the contract on the basis of the initial tenders.

Key considerations at this commercial stage

Contracting authorities should:

  • ensure that all relevant information is included in the procurement documents, including minimum timescales for the submission of requests to participate and tenders, the award criteria and minimum requirements
  • indicate in the contract notice and procurement documents whether it reserves the possibility of awarding a contract on the basis of initial tenders, without negotiation
  • indicate in the contract notice, and procurement documents, whether it will conduct the procedure in successive stages in order to reduce the number of tenders to be negotiated.

See also in the Procurement Act 2023:

  • Section 20: Competitive tendering procedures
  • Section 54: Time limits

Additional support and guidance

Make sure you:

  • read the regulation
  • seek legal and commercial advice in the context of specific procurements