Reg. 29 (PCR 2015)

Competitive procedure with negotiation

In: Define > Sourcing strategy

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

Determine whether the competitive procedure with negotiation is an appropriate procurement approach; by reference to the nature of the contract, its complexity and anticipated number of bidders.

Key considerations at this commercial stage

Contracting authorities should:

  • consider time limits for receipt of requests to participate and receipt of initial tenders; which must comply with minimum periods as per this regulation (i.e. regulation 29)
  • consider whether it would be appropriate to limit the number of suppliers invited to tender, on the basis of the selection criteria, ensuring that this complies with the minimum number stipulated in regulation 65 (reduction of the number of otherwise qualified candidates to be invited to participate)
  • consider whether they wish to reserve the right to award the contract on the basis of the initial tenders, without negotiation
  • consider whether it would be appropriate to conduct a competitive procedure with negotiation 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