Under which scenario is negotiation of an award permissible?

Under which scenario is negotiation of an award permissible?

• A. After receiving three valid bids
• B. When the estimated cost is exceeded based on previous submissions
• C. When there is overwhelming interest from multiple bidders
• D. When there is only one bid received

Answer: (B)

Negotiation of an award is permissible when the estimated cost exceeds the budget or funding available based on previous submissions. This situation allows the purchasing agent to engage in discussions with the vendor to explore potential adjustments to the terms or pricing, aiming to bring the cost in line with the budget. The ability to negotiate is crucial for ensuring that public funds are spent wisely and that the contract can be awarded within fiscal constraints. In contrast, other scenarios may not provide the same clear basis for negotiation. Receiving three valid bids typically requires selection based on the submitted proposals rather than negotiations. An overwhelming interest from multiple bidders doesn't necessitate negotiations, as competition could lead to satisfactory offers without the need for adjustments. Similarly, if only one bid is received, the necessity to negotiate usually arises if that bid is deemed too high or outside budgetary limits, reinforcing that negotiation is generally considered when previous findings indicate a need to align offers with expectations or limitations.

Negotiation of an award is permissible when the estimated cost exceeds the budget or funding available based on previous submissions. This situation allows the purchasing agent to engage in discussions with the vendor to explore potential adjustments to the terms or pricing, aiming to bring the cost in line with the budget. The ability to negotiate is crucial for ensuring that public funds are spent wisely and that the contract can be awarded within fiscal constraints.

In contrast, other scenarios may not provide the same clear basis for negotiation. Receiving three valid bids typically requires selection based on the submitted proposals rather than negotiations. An overwhelming interest from multiple bidders doesn't necessitate negotiations, as competition could lead to satisfactory offers without the need for adjustments. Similarly, if only one bid is received, the necessity to negotiate usually arises if that bid is deemed too high or outside budgetary limits, reinforcing that negotiation is generally considered when previous findings indicate a need to align offers with expectations or limitations.