Context

The conduct of negotiations after the close of the tender advertising period and before the selection of the preferred tender(s) can be considered a ‘fine tuning’ activity prior to entering a contract.

Matters that could be discussed include additional value adding options, specific contract management arrangements, accountable personnel for various contract stages or commitments, further intellectual property transfer opportunities, warrantees, service/supply arrangements, etc.

The objective of post tender negotiations is to obtain the optimal solution and commercial arrangements and not merely the lowest price.

Key Requirements

1. Restricted to Short Listed Tenderers
Post tender negotiations must only be undertaken with shortlisted tenderers or the preferred tenderer. If applicable, the process must be in accord with the relevant probity plan.

2. Consistency of Negotiations
The same general questions and propositions must be put to all shortlisted tenderers. This does not preclude questions of clarification that may be specific to a particular tender.

3. Documenting Post Tender Negotiations
A detailed record must be kept of the negotiation process for audit purposes and details of meetings are to be treated as Commercial-In-Confidence.

4. Maintaining the Integrity of the Tender
Post tender negotiations must not alter the scope or intent of the tender. Any deviation from the scope or intent of the tender would make the tender process void.

Other Requirements

1. Reporting the Conduct and Outcome to the APU
Purchase recommendation reports to the APU should note if the preferred supplier(s) was involved in post tender negotiations.

Related VGPB Policy and DTF Guidelines

VGPB Conduct of Commercial Engagements Policy

Related DTF Templates and Forms

Nil

Links to relevant Policy websites

Nil

Version Control Information

Version Number	2.2
Release Date	July 2008