Competitive Negotiation aka Formal Advertising

GOVERNMENT CONTRACTING TIPS

Competitive Negotiation aka Formal Advertising 

Formal Advertising is an invitation for a sealed bid that is publicly advertised and from-fixed price contract that is awarded to the properly registered contractors whose bid, conforming with all the material terms and conditions of the invitation for bids, is lowest, price and other factors considered.

According to Cornell University, a firm-fixed-price contract award shall be made by written notice to that responsible bidder whose bid, conforming to the invitation for bids, is lowest. When specified in the bidding documents, factors such as discounts and transportation costs shall be considered in determining which bid is lowest and any or all bids may be rejected by the owner when it is in its best interest.

Noncompetitive Negotiation

Noncompetitive negotiation is procurement through solicitation of a proposal from only one source, or after solicitation of a number of sources, competition is determined inadequate. Noncompetitive negotiation may be used when the award of a contract is not feasible under small purchase or competitive sealed bids. Circumstances under which a contract may be awarded by noncompetitive negotiations are limited to the following:

1. only from a single source

2. There exists a public exigency or emergency and the urgency for the requirement will not permit a delay incident to competitive solicitation; or

3.  After solicitation of a number of sources, competition is determined inadequate; or

4. No acceptable bids have been received after formal advertising; or

5. The procurement is for professional services; or

6. The aggregate amount does not exceed $100,000.

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