This is an action of two (or more) parties consulting about a possible arrangement of partnership. Their goal is to make an agreement that will be advantageous for all parties involved. Talks may go on between the parties till they come to a mutual agreement about all
points. The final aim is an agreement which is impartial and fair to all parties.
Contract awarded on the basis of a direct agreement with a contractor, without going through the competitive bidding process. It is also called negotiated agreement.