What happens when no bids are received after two attempts?

When no bids are received after two attempts, negotiation becomes permissible based on specific conditions outlined in the governing regulations. This approach allows the purchasing agent greater flexibility in securing a contract without the need for a third formal bidding process. Engaging in negotiations can be a practical solution to address the lack of responses from potential bidders, enabling the entity to explore options with vendors who may still be interested but did not submit a bid in the standard bidding process.

This flexibility is significant in procurement practices, as it allows for more timely and effective contract awards, particularly when market conditions or specific project requirements lead to limited interest from vendors. It's important to note that the decision to negotiate must still adhere to legal and regulatory guidelines, ensuring transparency and fairness in the procurement process.