Three-stage Negotiated Procedure in Public Procurement 2026

Three-stage negotiated procedure in public procurement: structure, course, legal basis and use cases of the multi-stage negotiated procedure.

Definition: The three-stage negotiated procedure is a form of negotiated procedure in public procurement in which the contracting authority identifies the most economically advantageous tender in three successive phases — a competitive selection of candidates, a first round of tenders, and a final negotiation round.

Last updated: January 2026 · Legal basis: Art. 29 Directive 2014/24/EU, §§ 17, 69 et seq. VgV, §§ 117 et seq. BVergG 2018

What is the three-stage negotiated procedure?

The negotiated procedure is the most flexible procedure type under EU procurement law and allows the contracting authority to negotiate with tenderers on all aspects of the tender. Unlike the open and restricted procedures — in which negotiations on tender content are prohibited — the negotiated procedure enables an iterative alignment of requirements and tenders. It is, however, subject to specific conditions and may not be used to circumvent competitive procurement principles.

In practice, the negotiated procedure is often organised as a three-stage process, even though procurement law does not prescribe a fixed number of stages.

The three stages in detail

Stage 1: Selection of candidates

In the first stage, a public selection round (competitive selection of candidates) is conducted in which undertakings demonstrate their suitability and submit a request to participate. The contracting authority assesses the suitability of the candidates and — where there are more candidates than the specified minimum — selects the most suitable undertakings. At least three candidates must be invited to submit tenders (Art. 65(2) Directive 2014/24/EU).

Stage 2: First round of tenders and negotiations

In the second stage, the selected candidates submit initial tenders, which the contracting authority then uses as the basis for negotiations. Negotiations may cover all aspects of the tender, except for minimum requirements and award criteria, which remain unchanged. After the first round of negotiations, the contracting authority may reduce the number of remaining tenderers (successive reduction, Art. 29(4) Directive 2014/24/EU).

Stage 3: Final tenders and award

In the third stage, tenderers are asked to submit their final tenders, which are no longer subject to negotiation. Final tenders are evaluated against the announced award criteria, and the contract is awarded to the tenderer with the most economically advantageous tender.

Conditions of use

The negotiated procedure is not freely available for all procurements. Under Art. 26(4) of Directive 2014/24/EU, it requires that:

The needs of the contracting authority cannot be met without adapting a solution readily available on the market
The contract requires design or innovative solutions
Particular circumstances such as complexity, risk profile or confidentiality justify it

FAQ

How many negotiation rounds are permitted? Procurement law does not set a maximum number. In practice, two to three rounds are typical; too many rounds increase the burden on all parties and should be avoided.

May the contracting authority introduce new requirements in the final negotiation round? No. Minimum requirements and award criteria are unalterable once announced. New requirements in late negotiation rounds would infringe procurement law.

Must all tenderers be treated equally in all negotiation rounds? Yes. The principle of equal treatment also applies in the negotiated procedure. Information from one tender must not be passed to other tenderers without consent.

Last updated: January 2026 All information is provided without warranty. For legally binding advice, please consult a law firm specialising in public procurement law.