Negotiated Procedure

A procurement procedure allowing direct negotiation with selected suppliers without prior publication of a contract notice, used only in specific exceptional circumstances.

How it works

The Negotiated Procedure allows contracting authorities to negotiate directly with chosen suppliers without publishing a contract notice in the Official Journal of the European Union (OJEU) or Find a Tender Service (FTS). This procedure bypasses the usual competitive tendering requirements and permits direct approach to suppliers.

Under the Public Contracts Regulations 2015, this procedure can only be used in strictly defined circumstances, such as extreme urgency, technical or artistic reasons, or when no suitable tenders were received through other procedures. The contracting authority must negotiate contract terms, including price, with one or more suppliers of their choice.

Legal requirements

The procedure requires robust justification and must meet specific criteria outlined in Regulation 32 of the Public Contracts Regulations 2015. Common scenarios include:

• Extreme urgency brought about by unforeseeable events
• Works or supplies that can only be provided by a particular supplier for technical or artistic reasons
• Additional works or supplies from the original contractor where separation would cause significant inconvenience

Documentation and transparency

Despite the streamlined process, authorities must maintain detailed records justifying the procedure's use. A contract notice must still be published after award, and the usual transparency requirements apply. The procedure does not eliminate the need for value for money considerations or compliance with Treaty principles of equal treatment and non-discrimination.

Risk considerations

This procedure carries higher legal challenge risks due to its exceptional nature. Incorrect use can result in procurement challenges and potential penalties.