Examining the Effects of Post Tender Negotiation in UK's Public Sector Procurements: An Empirical Study

The use of Post Tender Negotiation (PTN) procedure in the United Kingdom (UK) public sector procurements is restricted to exceptional cases. The proponents of these restrictions, including the European Union (EU) and the UK's Office for Government Commerce (OGC) cite ethical reasons. They argue that the procedure could stifle competition as the actions of the buyer could be unethically tilted in favour of certain suppliers. This paper argues that the restrictions deprive public sector buyers from reaping the benefits associated with the procedure and recommends relaxation of the restrictions. This is because findings from this study indicate positive effects of PTN for both buyer and supplier. The buyers can use the PTN procedure to negotiate for VFM procurement, while the suppliers can modify a bid to negotiate for contract which is within their resource capabilities to execute. Furthermore, the ethical reasons cited for the restrictions are narrowly premised as evidence in literature suggests that individual's ethical behaviour may be due to cultural beliefs and not necessarily rules set by authorities.