Negotiation with bidders, Financial Management

Assignment Help:

Negotiation

You can also negotiate with the bidders based on the requirements as mentioned below.

You can negotiate only with the lowest evaluated responsive and qualified bidder. Normally, you should not negotiate, as this sets a bad precedent for the bidders, who then initially raise the prices and may reduce the prices marginally on negotiations, which may still be more than the reasonable costs/prices. Thus, negotiations may lead to corruptive practices. However, negotiations may have to be conducted under the following circumstances:

  • When you find that the lowest evaluated responsive and qualified bid for works or for items of goods are substantially more than the updated cost of works or items of goods.
  • When the procurement for works or goods is of an urgent nature and rejection of bids and re-invitation of fresh bids will adversely affect the schedule for completion of the project.

The Chief Vigilance Commissioner, GoI has issued detailed guidelines4  on the circumstances under which negotiations could be conducted. GoK has also issued detailed guidelines as well as mentioned the procedure that has to be adopted for conducting negotiations.


Related Discussions:- Negotiation with bidders

Rating scale, Rating denote an issuer's ability to respond to adverse...

Rating denote an issuer's ability to respond to adverse changes in circumstances and economic conditions. The rating scale is generally differentiated into variou

Financial leverage, Financial Leverage In accounting and finance, ...

Financial Leverage In accounting and finance, the amount of long lasting debt that an organization has in relation to its equity the longer the ratio, the larger the lever

Defien the term ension funds, Pension funds Pension funds offers retire...

Pension funds Pension funds offers retirement income in the form of annuities to employees covered by a pension plan. They obtain contributions from employers or employees and

Modern approach, Meaning merits nd demerits of modern approch of financial ...

Meaning merits nd demerits of modern approch of financial management

Margining system, Margining System: Indian capital markets have finally...

Margining System: Indian capital markets have finally acquired an international flavor with the market-wide rolling settlement coming into place on both the premier exchanges (

What is the benefits of divestment, What is the Benefits of divestment ...

What is the Benefits of divestment ¸ Releases cash tied up to finance more promising opportunities. ¸ Reduces diversification and complexity of a group in case of a demerger

What is a hedge fund, Q.What is a Hedge Fund? A Hedge Fund is a fund es...

Q.What is a Hedge Fund? A Hedge Fund is a fund established by one or else several partners with net worth of at least $1 million (although this maybe falling). It uses long as

What are the failure of mergers and takeovers, Failure of mergers and tak...

Failure of mergers and takeovers Failure of mergers and takeovers Poor strategic plan will result in slow or failed integration. Integra

Financial decision, Should a company pursue price hike or focus on increasi...

Should a company pursue price hike or focus on increasing sales volume

risk/return profile of the convertible security, Let us consider thr...

Let us consider three scenarios of changes in stock prices and look into the risk return profile of the convertible security. Let us assume that the stock prices

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd