How should I respond to this statement
A company may prefer to negotiate rather than using competitive bidding because there are customizations in their goods and services for long periods of time or there are very few sources available. With negotiating there is the ability to negotiate when the cost of the suppliers is higher than normal and that you can also negotiate face to face and in a reasonable length of time. Competitive bidding is used when there are at least 2 other buyers interested in quoting a price because there is a competitive market, while the price negotiations are used on a "take it or leave it" basis.
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