Select the preferred offer

Find out how to select and negotiate the best offer that meets the procurement need.

How to select the preferred offer?

To select the preferred offer:

  • Check the financial viability of the final participants
  • Conduct post tender negotiations
  • Invite final offers (optional)
  • Seek references from referees
  • Rank the finalist participants and select the preferred offer

How to select the preferred offer

Step 1: Check the financial viability of the final participants

Follow local Agency process to check the financial viability of the final participants. This check may vary depending on the complexity and risk of the procurement.

Goods and services mandated Agencies must use the Professional advisory services state purchase contract category financial assessment services.

Other Agencies may use this contract.

Step 2: Conduct post tender negotiations

Where negotiations need to take place, develop and follow a negotiation strategy.

Negotiation is a process between the Agency and tender participants that seeks to:

  • improve value for money outcomes through discussion
  • resolve partial or full non-compliance with specification and/or contract.

Value for money may include financial and non-financial factors. See Value for money – goods and services guide to understand more about non-financial factors.

Either party can propose an action, an offer or detail a concession in attempting to arrive at an agreement.

Negotiation actions or offers must not compromise the integrity of the procurement process.

Before starting the negotiation, understand what the Agency is willing to consider when carrying out the discussion.

Follow local Agency procurement processes when conducting a negotiation and document each stage of the negotiation process.

For goods and services, see Negotiate – goods and services guide.

Step 3: Special negotiating requirements

Additional negotiating requirements may apply under procurement-related policies.

Review the market approach document and evaluation plan for which procurement-related policies require evaluation.

Review guidelines for each procurement-related policy to determine if additional negotiation on commitments made are needed.

Ensure any negotiation undertaken under procurement-related policies:

  • are consistent with the purpose of the procurement-related policy
  • are directed to enhancing outcomes under the procurement-related policy
  • do not detract from commitments made under other procurement-related policies
  • avoids impacting the offer price
  • avoids impacting the delivery timelines in the offer
  • do not impact the value for money assessment of the offer

Step 4: Invite final offers

During the negotiation process, final offers may be required to confirm commitment from the participants. This may include:

  • Targeted improvement process
  • Best and final offer

Follow the negotiation strategy and local Agency policy to invite final offers.

Document each part of this process.

Step 5: Seek references from referees

Request the participant to provide references.

Check these to ensure the participant has a good track record.

Step 6: Rank the finalist participants and select the preferred offer

Rank the participants based on the final offers provided. Select the offer that best meets the need of the Agency and delivers the greatest value for money.

Step 7: Manage probity and conflicts of interest

Manage probity – consider issues raised at Probity issues by stage and task.

Conflicts of interest can arise during this task. Identify, declare, and manage these.

Do not accept gifts, benefits, or hospitality.

During this time, suppliers may offer gifts, benefits, or hospitality. It is good practice to reject the offer and tell the project sponsor about the offer.


Address Agency rules

Consult Agency procurement team for advice on meeting:

Follow Agency specific rules on when to seek an approval and who can give the approval.

Follow Agency specific rules for recording decisions and storing records.