What is involved in a contact method that includes negotiations with a single provider?

The contact method that includes negotiations with a single provider is known as single-source negotiation. This approach is used when a specific vendor is chosen to supply goods or services without considering other suppliers. The process allows the buyer to negotiate terms, prices, and conditions directly with this one source, facilitating a more tailored agreement that meets the unique needs of the buyer.

Single-source negotiation can be advantageous in situations where the provider has specialized capabilities, proprietary technology, or a longstanding relationship that is beneficial for the project or procurement in question. This method streamlines communication and negotiation but may pose risks if alternatives are not considered.

In contrast, sealed bidding involves soliciting proposals from multiple suppliers that are then evaluated blindly, while market research focuses on gathering information about potential suppliers and market conditions rather than negotiating with them directly. The request for quotations (RFQ) typically invites multiple vendors to submit their priced offers based on the buyer's specifications, which is a competitive approach rather than engaging in singular negotiations.