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PPA 2016 – Amendment of Section 76 – Negotiations of Prices

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PPA 2016 – Amendment of Section 76 – Negotiations of Prices

Post  RJM on Wed Sep 28, 2016 6:24 pm

One of the major amendments in the just enacted PPA 2016 is deleting paragraphs (c) and (d) of Section 76(2) of the PPA 2011. Section 76 deals with Negotiations and Award of Contract and the deleted paragraphs are relating negotiations of prices as reproduced below.

Negotiations shall not be conducted;

(c) primarily for the purpose of reducing prices in case of procurement of goods, works or services;
(d) purely for the purpose of increasing prices in case of disposal of assets.

Following these amendments;

a. Does this imply that Procuring Entities now are allowed to negotiate prices/offers by bidders?
b. What are the implications of these amendments?
c. What are rationales for these amendments?

What is your take?

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