The application of post tender negotiation procedure: a public sector procurement perspective in UK

Abstract

Post Tender Negotiation (PTN) procedure is part of the tendering process in procurement of goods and services. The procedure could be triggered if the initial tendering activity does not result in the selection of a supplier. This could be due to a lack of clear Value for Money (VfM) bidder. The PTN procedure is sparingly applied in the UK public sector procurement and the reasons adduced for this are based on ethical considerations. The UK Office of Government Procurement (OGP), formerly known as the Office for Government Commerce (OGC) and the European Union (EU) are the chief proponents of restricting the use of PTN to exceptional cases. The premise of their argument is that the buyer could unethically tilt her/his actions in the process of applying the PTN procedure to favor certain suppliers. It is the argument of this paper that buyers from the public sector in UK are being deprived of the procedure’s benefit and therefore, the restrictions should be relaxed. Evidence from this study suggests that the procedure could offer the opportunity for further clarifications of supplier’s bid. The study also identifies that, for PTN to be successful, factors ensuring success in negotiations including cooperation should be present.