Negotiation Under Public Contract Code (PCC) 6611 - 900

Policy

Public Contract Code, Sections 6611 (a) and (b) set forth the conditions under which DGS may use negotiations for new and existing contracts and/or procurements. Public Contract Code, Section 6611(e) also allows the CDT for acquisitions conducted under CDT's procurement authority, to use the negotiation procedures and guidelines developed by DGS for procuring information technology and telecommunications goods and services on behalf of state departments.

When an appropriate basis exists, DGS or CDT may authorize negotiations in any of the following circumstances:

• At the outset of a procurement
• During a competitive procurement, or
• When no responsive bids are received

Public Contract Code, Section 6611(b) authorizes a negotiation process to amend existing contracts when it is in the best interest of the state.

In all circumstances, approval of the Director of DGS or the Director of CDT or their designee is required in advance, and negotiations must be conducted by DGS or CDT (for technology projects). The actual negotiations will be conducted in partnership with the procuring agency.

DGS recommends during the acquisition planning phase, agencies and departments plan accordingly and consider whether a negotiation process is appropriate for a given procurement. Departments should contact DGS for assistance in determining applicability of Public Contract Code, Section 6611(a) and developing the framework for the negotiation process.