What defines a negotiated contract?

A negotiated contract is characterized by the process of negotiations occurring prior to the award of the contract. This means that the parties involved engage in discussions to reach an agreement on the terms and conditions of the contract. This type of contract allows for flexibility and collaboration between the buyer and the seller, enabling them to tailor the contract terms to better meet their mutual needs.

In contrast to a negotiated contract, a contract awarded through sealed bidding typically follows a more rigid process where bids are submitted and evaluated based on predetermined criteria, without engaging in discussions with bidders. Additionally, a contract solely based on the lowest bid emphasizes price over other considerations and does not account for the negotiation process. Lastly, a basic agreement with no specific terms lacks the detailed terms and conditions that define a negotiated contract, which usually outlines specific obligations, deliverables, pricing, and timelines mutually agreed upon during the negotiation phase. Therefore, the defining feature of a negotiated contract is indeed the prior negotiations that shape its terms and conditions.