Government Tenders and Procurement Law

The proposal review committee may negotiate with the bidder of the best proposal, and then with the next best bidders, in the following cases: 1. If the price of the best proposal is significantly higher than market prices, the committee shall specify the amount of reduction that would make the bidder’s price consistent with market prices, and it shall send a written request for reduction. If the bidder declines or fails to reduce the price to the specified amount, the committee shall negotiate with the next best bidder, and so forth, until the target price is reached. If such price is not reached, the tender shall be canceled. 2. If the price of the best proposal exceeds the appropriations for the project, the committee shall send the bidder a written request to provide a reduction that makes the price fall within the appropriations. If the bidder declines or fails to reduce the price to the specified amount, the committee shall proceed to negotiate with the next best bidder, and so forth, until reaching a price that falls within the project appropriations. If such price is not reached, the government agency may, upon approval of the Unified Procurement Agency, cancel or reduce some items to lower the price to the appropriated amount, provided that this does not affect the usability of the project or the order of proposals. If such cancellation or reduction of project items is not feasible, the tender shall be canceled.