The Orbidder suite of templates includes two negotiated RFP (“NRFP”) formats. These formats both allow direct negotiations between the purchaser and one or more proponents before the final contract is executed.
The NRFP — also called the consecutive negotiation or “Rank-and-Run” RFP — ranks proposals based on price and non-price factors and allows the purchasing institution to negotiate a contract award with the top-ranked proponent. As recommended in the UN Model Procurement Law, when it becomes apparent that the parties cannot come to terms, the consecutive negotiation NRFP allows the purchaser to run down the rankings to negotiate with the next-ranked proponent. Within Canadian procurement circles, the consecutive negotiation approach is often referred to as the “Rank-and-Run RFP.”
By contrast, the BAFO NRFP — also called the concurrent negotiation or Dialogue RFP — allows the purchasing institution to enter into parallel discussions with multiple shortlisted proponents after a preliminary screening process that identifies the finalists. The dialogue stage allows for the development or refinement of potential solutions through direct discussions between the purchaser and each proponent, and may result in a single viable solution or several viable solutions. At the close of the dialogue phase, the public institution invites each shortlisted finalist to submit its best and final offer (“BAFO”). The final ranking is based on those final offers and, in most cases, the award goes to the final top-ranked proponent.