Competitive Procedure with Negotiation

The competitive procedure with negotiation (CPN) is an EU procurement method that allows contracting authorities to negotiate with shortlisted suppliers after receiving initial tenders, refining the specification and offers through one or more rounds before a final bid is submitted and evaluated.

What is the Competitive Procedure with Negotiation?

The CPN follows a two-stage structure similar to the restricted-procedure, but adds a negotiation phase between initial tenders and final bids. The authority publishes a contract-notice and a selection notice, shortlists at least three candidates using selection-criteria, and invites those candidates to submit initial tenders. The authority then negotiates with each shortlisted supplier individually on any aspect of the tender except the minimum requirements and award-criteria, which cannot change. After negotiation, all remaining candidates submit their best and final offers, which are evaluated against the fixed award criteria.

CPN is available only in specific circumstances: where the authority's needs cannot be met without adaptation of readily available solutions, where the requirement involves design or innovation, where technical specifications cannot be set with sufficient precision, or where a prior open-procedure produced only irregular or unacceptable tenders.

Why the Competitive Procedure with Negotiation matters for bidders

For suppliers, CPN is both an opportunity and a discipline test. The negotiation phase allows a supplier to clarify misunderstandings, refine a technical approach, and adapt pricing to scope changes agreed with the buyer, which can produce a much stronger final offer than a one-shot submission. The practical discipline is to track what minimum requirements and award criteria are fixed from the start, since negotiating away from those is not permitted and proposing off-specification solutions wastes both parties' time. Suppliers should also prepare for parallel negotiations where the buyer talks to all shortlisted firms simultaneously, and information shared in one negotiation session does not reach competitors.

FAQ

How many candidates must be shortlisted for a CPN?

At least three candidates must be invited to submit initial tenders, provided enough qualified candidates exist.

Can the contracting authority negotiate on price under CPN?

Yes, price is negotiable in CPN unless the authority explicitly excludes it. The items that cannot be negotiated are the minimum requirements stated in the contract notice and the award criteria used to evaluate final tenders.

How does CPN differ from competitive dialogue?

In CPN, the authority defines minimum requirements upfront and negotiates to improve offers against a known specification. In competitive-dialogue, the authority discusses possible solutions with candidates before any specification is fixed, making it more appropriate when the solution itself is unknown.