Conducting Negotiations During a Procurement - 905

Departments shall follow these steps when conducting negotiations during a competitive procurement in which at least one responsive, responsible bid has been received:

1. Obtain approval from DGS to utilize negotiations.
2. Only bidders that submitted responsive, responsible bids may participate in negotiations. Notify bidders that will be selected to participate in negotiations. Buyers must establish the criteria for selection in the solicitation either from the outset or via addendum. Examples include:
   1. Negotiate with all responsive, responsible bidders.
   2. Establish a competitive range based on bidders’ rankings following bid/proposal evaluations.
   3. Initiate negotiations with the highest ranking bidder then, if no agreement can be reached, move on to the next highest ranked bidder continuing until an agreement can be reached.
3. Negotiate. 
   1. Follow the rules of the solicitation in negotiating with bidders.
   2. Negotiations may be completed after a single round or may be done in several rounds.
   3. Negotiations may be conducted orally and/or in writing. Oral negotiations may be held in person, by conference call, or by use of video or web conferencing.
   4. The negotiation process may include persuasion, alteration of assumptions and positions, give and take, and may apply to price, schedule, requirements, or other terms of the proposed contract. The state may discuss other aspects of the Bidder’s proposal that could, in the opinion of the state, be altered or explained to enhance materially the proposal’s potential for award. However, the state is not required to discuss every area where the Bidder’s proposal could be improved. The scope and extent of negotiation exchanges are the matter of the state’s judgment. All Bidders currently in negotiations will be notified of changes in requirements.
   5. The state may establish a negotiation team to consist of representatives from DGS, and the requesting department, and other state representatives.
4. Final evaluation and award. Use one of the following options to make a final award: 
   1. Using the original criteria in the solicitation, score all proposals based on either the results of negotiations or, if applicable, the BAFO. Award to the highest ranked bidder.
   2. Revise the evaluation criteria based on the results of the negotiations. Prior to final evaluation, all bidders participating in negotiations shall be informed of the revised evaluation criteria and shall have the opportunity to submit a BAFO based on those criteria. Award to the highest-ranked bidder.
5. Issue a final evaluation and selection report documenting any decisions relating to selection of bidders to participate in negotiations, final scoring of proposals, and award decisions.
6. DGS or CDT, as applicable, may terminate negotiations and/or the solicitation at any time.