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

Hedging using commodity futures, Hedging Using Commodity Futures Produc...

Hedging Using Commodity Futures Producers of agricultural commodities are faced with price risk and production risk over a period of time and within a marketing year. In case o

Illustrate methods to manage cash resources, Q. Illustrate Methods to Manag...

Q. Illustrate Methods to Manage cash resources? There are several methods which may be of use in managing resources. The particular tool selected will depend on its reliability

Credit enhancement mechanisms, Credit enhancement is a key part...

Credit enhancement is a key part of the securitization transaction in structured finance, and is important for credit rating agencies. Credit enhancem

Write a market outlook for bond markets, The requirement of this assignment...

The requirement of this assignment that you write a Market Outlook for Bond Markets in a report form, in which you present your assessment of  the investment potential of global so

Caselet, suggestion regarding credit limit. should it be approved or not wh...

suggestion regarding credit limit. should it be approved or not what should be the amount of credit limit that electronics give to booth plastics

Dividends, Company X is expected to maintain a constant 7% growth rate in t...

Company X is expected to maintain a constant 7% growth rate in their dividends, indefinitely. If company X has a dividend yield of 4%, what is the required return on their shares?

Evaluate alternative hedging strategies, Peak Inc. needs to order Canadian ...

Peak Inc. needs to order Canadian raw materials to use in its production process. The Canadian exporter typically invoices Peak in Canadian dollars. Assume that the current exchang

Determine cost of redeemable debt, Q. Determine Cost of redeemable Debt? ...

Q. Determine Cost of redeemable Debt? Cost of redeemable Debt: - Usually a company issues a debt which is redeemable subsequent to a certain period during its life-time. Such a

Describe the interest rate parity theory, Question: (a) Describe the In...

Question: (a) Describe the Interest Rate Parity Theory. (b) A company needs to pay in 3 months USD 1 million. The USD are already at disposal in the company, thus the c

Find the impact of price and trading volume, Purpose of research: The a...

Purpose of research: The aims of this research are to examine the effectiveness of speculation on efficiency of Petrochemical sector in Saudi Arabia financial market"TADAWUL".

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