What is "Negotiated Procurement"?

Negotiated procurement is defined as an acquisition process that involves discussions and negotiations between the buyer and potential sellers. This method allows for more flexibility compared to a sealed bidding process, where offers are submitted without prior negotiations or discussions.

In negotiated procurement, buyers can engage with vendors to clarify terms, assess capabilities, and modify proposals based on discussions. This approach supports obtaining more tailored solutions that meet the specific needs of the buying organization. It fosters collaboration and can lead to better pricing, terms, and overall outcomes than may be achieved through a rigid bidding process.

The other choices highlight aspects that do not align with the essence of negotiated procurement. For example, requiring sealed bids pertains to a structured competitive bidding environment where proposals are evaluated strictly on predefined criteria without negotiation. Similarly, eliminating competition runs counter to the principles of procurement, which typically aims to foster a competitive marketplace. Focusing solely on the lowest cost neglects the broader scope of value and suitability that negotiated procurement seeks to recognize through an interactive approach.