Can government agencies negotiate directly with a supplier without tendering?
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Can government agencies negotiate directly with a supplier without tendering?

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28.08.2026

We are a small technology firm, and a government agency approached us about building a system without a public process. Some competitors are complaining. When can an agency lawfully award a contract directly?

Site Administration 02.09.2026
reply date: 02.09.2026

The Government Procurement Rules generally require open advertising for contracts above the threshold, but there are limited exceptions that permit direct source procurement. These may apply in circumstances such as extreme urgency, where there is only one possible supplier for technical or intellectual property reasons, where an earlier procurement failed, or for additional deliveries of an existing contract where a change of supplier would cause incompatibility. Agencies must document the justification, and are encouraged to consider whether a direct appointment is genuinely the best approach. Non-compliance may lead to complaints, audit findings by the Office of the Auditor-General or Ombudsman review. As a supplier, you should ask the agency to confirm the basis for the direct approach, and make sure that any contract complies with the Rules, since agreements found to be improper can attract criticism and reputational risk.

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