Competitive negotiation and inquiry are two different procurement methods, and they have distinct definitions, characteristics, and operational processes.
Definition:
Competitive negotiation refers to a procurement method where the purchaser or procurement agency negotiates with multiple suppliers (usually not less than three) to ultimately determine the winning supplier.
Characteristics:
Flexibility: Competitive negotiation is often used by centralized procurement agencies in daily operations due to its uniqueness and flexibility.
Process: It includes steps such as procurement budget and application, procurement approval, selection of procurement agency, formation of negotiation team, preparation of negotiation documents, determination of supplier list for negotiation, and negotiation itself.
Conditions: It is suitable for procurement projects with complex or special technical requirements where detailed specifications or specific requirements cannot be determined. It is also suitable for projects where the time required for bidding cannot be met due to unforeseen reasons or delays caused by the purchaser.
Definition:
Inquiry refers to a procurement method where the purchaser sends an inquiry notice to relevant suppliers to request product quotations. Then, based on the quotations, the purchaser negotiates with the suppliers to determine the optimal procurement mode and price.
Characteristics:
Directness: Inquiry is a direct method of inquiring about suppliers' prices, which is suitable for products with relatively small price fluctuations.
Quotation Method: Suppliers are required to submit a non-negotiable price in one go, without multiple rounds of price competition.
Contract Terms: During the inquiry process, the contract terms stated in the inquiry notice cannot be changed.
Procurement Document Preparation: Inquiry only requires the preparation of an inquiry notice, while competitive negotiation may require the negotiation team to prepare negotiation documents for technically complex or unclear requirements.
Quotation Method: Inquiry involves a one-time quotation, while competitive negotiation may involve multiple rounds of quotation.
Contract Terms: The contract terms remain unchanged during the inquiry process, while the technical and service requirements as well as the contract draft terms in the negotiation documents can be changed during competitive negotiation.
Composition of Evaluation Experts: For technically complex or highly specialized negotiation projects, the evaluation experts for competitive negotiation should include one legal expert, while inquiry does not require this.
