What is a Negotiated Procedure?
The Negotiated Procedure (German: Verhandlungsverfahren) is a procurement method governed by § 17 VgV, where the contracting authority can negotiate with selected bidders on their offers. Unlike open and restricted procedures, genuine negotiations on price, specifications, and contract terms are permitted.
With and Without Prior Publication
Procurement law distinguishes two variants:
- With participation competition (standard): The authority publishes a notice, companies apply, and only qualified applicants are invited to negotiate. At least three candidates must be invited (§ 51(2) VgV).
- Without participation competition (exception): Only permitted in narrowly defined cases, such as when a previous procedure has failed or in cases of particular urgency (§ 14(4) VgV).
When is the Negotiated Procedure Used?
The negotiated procedure is particularly suitable for:
- Services and IT projects where requirements are refined through dialogue
- Consulting services where conceptual approaches are compared
- Complex procurements that do not allow for a clear specification
- Failed procedures where an open or restricted procedure yielded no suitable bids
Process and Negotiation Rounds
- Publication and participation competition (if applicable)
- Initial offers (indicative offers) from selected bidders
- Negotiation rounds: The authority negotiates with bidders on their offers, applying MEAT criteria (Most Economically Advantageous Tender) – price is only one factor alongside quality, concept, and experience.
- Final offers (BAFO – Best and Final Offer)
- Award to the most economically advantageous tender
Patterno-HIT for Negotiated Procedures
Negotiated procedures are frequently used for high-value service and IT contracts. Patterno-HIT automatically identifies this procedure type and notifies you specifically, so you never miss a lucrative negotiated procedure.