PURCHASING PROCEDURES - University of Central Lancashire

4.3 Negotiated Procedure
Under the Negotiated Procedure the terms of the contract are negotiated directly with one or
more suppliers. However, the procedure can only be used in the specific instances described
below. Moreover, the Office of Government Commerce advises that use of the Negotiated
procedure is likely to decline as the Competitive Dialogue procedure becomes more widely
accepted.
It is NOT mandatory to advertise the Negotiated tender in the OJEU unless specifically
stated to the contrary below. It is permissible for the Negotiated Procedure to take place
in successive stages to gradually reduce the number of tenders, providing the contract notice
or specification states that this is the intention.
4.3.1 For public works, public supplies and public service contracts:
a) Tenders received under a previous competitive exercise held under the Open, Restricted
or Competitive Dialogue procedures have been irregular, or unacceptable. The
proposed terms of the contract must be substantially unaltered from those originally
used. The resultant tender must be advertised in the OJEU, giving the reasons for use
of the Negotiated Procedure.
Note: If all of the participants in the Open or Restricted exercise are invited to
negotiate then there is no need to advertise the use of the Negotiated procedure.
However, if one or more of the participants from the earlier tender exercise who
submitted tenders is rejected, then the use of the Negotiated procedure must be
advertised in the OJEU. In both instances, the terms of the Negotiated tender must be
substantially unchanged from the original exercise undertaken under the Open or
Restricted procedure.
b) A competitive exercise held under the Open or Restricted procedure has resulted in no
applications or tenders, or unsuitable tenders.
c) There is only one supplier available for technical or artistic reasons or on account of
exclusive rights.
d) Extreme urgency exists for reasons that are unforeseeable and are not attributable to
the contracting authority.
e) In exceptional cases where the nature of the works, supplies or services or the risks do
not permit overall pricing, the Negotiated tender must be advertised in the OJEU.
4.3.2 For public supply contracts:
a) The goods covered by the contract are to be manufactured purely for the purpose of
research, experiment, study and development; but not when the goods are to be
purchased or hired to establish their commercial viability or to recover their research
and development costs.
b) The goods covered by the contract are partial replacements for, or additional to, existing
goods or an installation, or when obtaining the goods from another source would cause
Purchasing Procedures December 2011