Certified Texas Contract Manager Practice Exam

Why is price negotiation allowed in a Request for Qualifications (RFQ)?

1. Because price is the only evaluation method

2. To ensure budget compliance after selection

3. It is not allowed in an RFQ

4. To predefine the total project cost

The correct answer is: To ensure budget compliance after selection

Price negotiation is allowed in a Request for Qualifications (RFQ) primarily to ensure budget compliance after selection. The RFQ process focuses on the qualifications and experience of potential contractors rather than on price alone. After the initial evaluation, when a contractor is selected based on their qualifications, price negotiations become essential to align the projected costs with the available budget. This step is crucial as it helps the procuring entity confirm that the chosen contractor can deliver the project within financial constraints while still maintaining the expected level of quality and service. In the context of the RFQ process, the other options do not accurately reflect the purpose of including price negotiations. For instance, price is not the only evaluation method, as RFQs prioritize qualifications. Also, the statement that it is not allowed contradicts established practices, as price negotiations can occur in this context post-selection. Lastly, while total project cost considerations are essential, the primary goal of price negotiation is to find a mutually acceptable price that aligns with the budget rather than simply to predefine costs upfront.