1.1.1 This note is the fourth in a series of Technical Notes to be issued by the Treasury Taskforce providing practical guidance on key technical issues which arise from the implementation of the Private Finance Initiative (PFI). Each note focuses on a specific area of the procurement process where experience has shown that project managers and other interested parties would value assistance.
1.1.2 The note is designed to assist public sector procurers to choose the right moment to enter into exclusive negotiations with a preferred bidder following competition and to carry out the negotiations in a fair and cost effective manner. It is advisory rather than mandatory, providing guidance on good practice. Accounting Officers may wish to take the guidance into account in accordance with their value for money responsibilities.
1.1.3 The note should be read in conjunction with Treasury Taskforce Technical Note No. 2 "How to Follow EC Procurement Procedure and Advertise in the OJEC". In accordance with the advice contained in that document, this note assumes that where the EC procurement rules apply, the procurement is being carried out under the negotiated procedure. Consequently, the term 'Invitation to Negotiate' or ITN is used to mean the documentation which is sent out to bidders following prequalification which sets out the procurer's requirements and invites the first substantive proposals from bidders. For those projects which involve a further stage before the appointment of a preferred bidder, invitations for further proposals are dealt with under the 'Best and Final Offer' (BAFO) documentation.
1.1.4 The text of this note is available on the Internet at http://www.treasury-projects-taskforce.gov.uk.