How is "Negotiation" defined in the context of public procurement?

In the context of public procurement, "Negotiation" is defined primarily as an interactive process to discuss terms and conditions. This involves engaging in conversations with potential vendors or contractors to find a mutually acceptable agreement that satisfies the needs of both parties. During this process, various aspects such as pricing, delivery schedules, performance standards, and other contractual details are discussed to foster a collaborative relationship and seek the best value for the public entity involved.

This definition emphasizes that negotiation is not merely about establishing prices or making a legal agreement, but rather an ongoing dialogue that allows for flexibility and the exchange of ideas. It is also distinct from the competitive bidding process, which typically involves set bids submitted without direct interaction between the parties before the selection. Thus, the essence of negotiation lies in its interactive nature, facilitating a deeper exploration of terms that can lead to a successful procurement outcome.