Invitation to Negotiate (ITN)

The Invitation to Negotiate (ITN) process used by the UK Ministry of Defence (MOD) is a procurement method that allows for a more flexible and interactive approach to tendering compared to the traditional ITT process. It is particularly useful for complex projects where the MOD seeks to engage with potential suppliers to refine proposals and negotiate terms. Here’s an overview of the ITN process:

1. Preparation of ITN Documentation: The MOD develops ITN documents that outline the project objectives, requirements, evaluation criteria, and the negotiation process. This documentation provides potential suppliers with the necessary information to prepare their responses.

2. Invitation to Selected Suppliers: The ITN is issued to suppliers who have been pre-qualified, often through a PQQ or previous engagement processes. This ensures that only suitable suppliers are invited to participate in the negotiation.

3. Submission of Initial Proposals: Suppliers are asked to submit initial proposals in response to the ITN. These proposals typically include technical solutions, pricing, and other critical elements as specified by the MOD.

4. Clarification and Dialogue: After receiving the initial proposals, the MOD engages in a dialogue with the suppliers. This may involve meetings or discussions to clarify proposals, explore options, and gather additional information. This interactive stage allows the MOD to better understand the suppliers' capabilities and to discuss potential adjustments to their proposals.

5. Negotiation: Following the clarification stage, the MOD conducts negotiations with one or more suppliers. This process is iterative, allowing for adjustments in the proposals based on feedback and further discussions. The aim is to achieve the best value for money, appropriate risk allocation, and compliance with the MOD's requirements.

6. Final Submission: After the negotiation phase, suppliers may be invited to submit final proposals that reflect any agreements made during negotiations. This submission should incorporate feedback and any required changes.

7. Evaluation of Final Proposals: The MOD evaluates the final submissions based on the pre-defined criteria, which may include technical quality, cost-effectiveness, delivery times, and any other relevant factors.

8. Award of Contract: Once the evaluation is complete, the MOD selects the preferred supplier and awards the contract. Contract terms are finalized, ensuring both parties agree on deliverables and expectations.

9. Notification and Debriefing: All suppliers who participated in the ITN process are notified of the outcome. Unsuccessful bidders may receive feedback on their proposals, providing valuable insights for future submissions.

10. Contract Management: Post-award, the MOD actively manages the contract to ensure compliance and performance by the supplier throughout the duration of the contract.

The ITN process allows the MOD to foster collaboration and innovation from suppliers while ensuring flexibility in meeting complex procurement needs. It is particularly useful for high-value, high-risk projects where the outcome significantly affects operational capability.