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You are on step 10 of 10 steps.

Click for slide: Planning for negotiations Click for slide: Managing the Supply Chain Click for slide: Other agreements Click for slide: Ensure the right contract is in place Click for slide: Agree service levels Click for slide: Prepare for change Click for slide: Ensure that there is a clause addressing dispute resolution Click for slide: Selecting a preferred bidder Click for slide: Produce evaluation plan Click for slide: Agree draft contract
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What you need to do

On completion of negotiations a final version of the contract should be reviewed to ensure it is acceptable to the organisation. The suppliers are then asked to confirm it is acceptable to them, in which case Best and Final Offer (BAFO) can be invited.

If a preferred bidder route is to be followed, formal agreement to core elements of the 'deal' is usually sought via an MOU before bids are invited.

Points to consider

  • Does the contract accurately represent the requirement?
  • Have stakeholder requirements/views been taken into account?
  • Do the potential providers have realistic solutions to meeting the requirement?
  • Does the organisation have the necessary skills and resources to meet its obligations under the contract, and for managing the contract?
  • Have any related agreements with other parties been produced and agreed?
  • Do the charging arrangements take account of changing levels of demand (both up and down)?

In complex procurements, consider producing a plain language guide describing the contract and particularly the factors influencing its development. It can be very useful in helping contract management staff understand the background to the contract and the issues that came up in negotiation.

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