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What are contract negotiations?

After evaluating submissions, agency staff or the review committee usually recommend a single firm for contract award, subject to contract negotiations. Negotiations with the recommended firm include refining the scope of work, schedule, deliverables, and price, with the objective of obtaining the best value for the agency. Agencies may wish to develop a checklist of standard contract terms that can be modified for individual projects. 

The agency must ensure that the final scope is consistent with the services described in the formal solicitation document. A substantial change in the scope may lead to protests from unsuccessful firms, especially if it is accompanied by a cost increase over and above the original projections. 

When determining whether the cost is fair and reasonable, agencies should consider the nature of the work, the risk assumed by the consultant, the management of any sub-consultants, and the project timeline. 

If the agency is unable to negotiate a fair and reasonable price with the most highly qualified firm, it may negotiate with the second-most qualified firm instead, and so on until an agreement is reached with one of the firms or the process is terminated (RCW 39.80.050).