What type of negotiation can occur when the supplier bids low to secure a contract?

The correct answer is related to the scenario where a supplier bids low to secure a contract, which typically falls under post-award negotiation. In post-award negotiation, discussions can take place after a contract has been awarded to adjust terms, clarify expectations, or even negotiate pricing further.

In this context, a supplier might initially submit a low bid in hopes of winning the contract, and then subsequent negotiations could involve discussions on cost management, performance incentives, or adjustments to service delivery. This type of negotiation recognizes that the supplier has already secured the contract but may need to refine the arrangement to meet both parties' needs effectively.

This contrasts with other negotiation types such as tender negotiation, which occurs during the bidding phase before a contract is awarded; competitive negotiation, which emphasizes rivalry among bidders to obtain the best price beforehand; and cost-reduction negotiation, which is primarily focused on cutting costs during ongoing contract performance rather than on the initial contract securing phase. Each of these categories is distinct and situates negotiations at different points in the procurement process, which is essential to understand.