Section 38.05.01.084 - NEGOTIATIONSIn accordance with Section 67-9205(12), Idaho Code, the administrator may negotiate acquisitions as follows:
01.Use of Negotiations. Negotiations may be used under these rules when the administrator determines in writing that negotiations may be in the best interest of the state including the following circumstances:a. Negotiations undertaken pursuant to an ITN, in accordance with the provisions of Section 094 of these rules.b. A competitive solicitation has been unsuccessful for reasons including that all offers are unreasonable, noncompetitive, or exceed available funds and the available time and circumstances do not permit the delay required for resolicitation;c. There has been inadequate competition;d. During the evaluation process it is determined that negotiations could secure advantageous terms or a reduced cost for the state; ore. During the evaluation process it is determined that all responsive offers exceed available funds and negotiations could modify the requirements of the formal solicitation to reduce the cost to available funds and avoid the extended time and expenditure of resources for a resolicitation.02.Conditions of Use. Negotiations, as permitted by Subsection 084.01.d., are subject to the following:a. The formal solicitation must specifically allow for the possibility of negotiation and describe, with as much specificity as possible, how negotiations may be conducted;b. Submissions shall be evaluated and ranked based on the evaluation criteria in the formal solicitation;c. Only those vendors whose proposals or bids are determined to be acceptable, in accordance with criteria for negotiations set forth in the formal solicitation, shall be candidates for negotiations;d. Negotiations shall be conducted first with the vendor that is the apparent low responsive and responsible bidder, unless concurrent negotiations are permissible, in accordance with the terms of the solicitation;e. If one (1) or more responsive offers does not exceed available funds, negotiations shall be against the requirements of and criteria contained in the formal solicitation and shall not materially alter those criteria or the specifications;f. Auction techniques (revealing one vendor's price to another) and disclosure of information derived from competing proposals is prohibited;g. Any clarifications or changes resulting from negotiations shall be documented in writing;h. If the parties to negotiations are unable to agree, the administrator shall formally terminate negotiations and may undertake negotiations with the next ranked vendor; andi. If negotiations as provided for in this rule fail to result in a contract, as determined by the administrator, the formal solicitation may be canceled and the administrator may negotiate in the best interest of the state with any qualified vendor.03.Timing of Use. If conducted as part of a small purchase or under the formal sealed procedure, negotiations are the last step in the procurement process. Use of oral interviews or best and final procedures, as provided for in a formal solicitation, must precede negotiations as provided for in this rule, unless the administrator makes a written determination that it is in the state's best interest to proceed directly to negotiations in lieu of first conducting oral interviews and the best and final procedures.04.Termination of Negotiations. The purchasing authority may terminate negotiations at any time, in the best interest of the state.Idaho Admin. Code r. 38.05.01.084