A Letter Of Intent Procurement is commonly used in Irish business and public sector transactions as a preliminary step before entering into a formal procurement contract. It serves to document the parties' serious intention to proceed with a procurement transaction while allowing for further negotiation and due diligence. Under Irish law, these letters must carefully distinguish between binding and non-binding provisions to avoid unintended legal obligations. The document typically includes key commercial terms, proposed timelines, and any exclusivity arrangements, while ensuring compliance with Irish and EU procurement regulations. It's particularly valuable in complex procurement scenarios where parties need to demonstrate commitment while maintaining flexibility, and when regulatory approvals or further due diligence are required before finalizing the full agreement.
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1. Letter Heading: Company letterhead, date, and addressee details
2. Subject Line: Clear identification of the document as a Letter of Intent for the specific procurement
3. Introduction: Brief introduction identifying the parties and the proposed transaction
4. Transaction Overview: High-level description of the proposed procurement, including the goods/services to be procured
5. Key Commercial Terms: Outline of principal terms including proposed pricing, quantity, and delivery timeline
6. Due Diligence: Overview of any due diligence requirements and timeline
7. Exclusivity: Statement regarding any exclusivity period
8. Timeline: Proposed timeline for negotiation and execution of definitive agreements
9. Non-Binding Nature: Clear statement about which provisions are non-binding
10. Binding Provisions: Specific provisions that are intended to be binding (e.g., confidentiality, costs, exclusivity)
11. Closing: Formal closing, signature blocks for both parties
1. Break Fee: Include when parties agree to a break fee if the transaction doesn't proceed under certain circumstances
2. Regulatory Approvals: Include when the procurement requires specific regulatory approvals or compliance
3. Cost Allocation: Include when parties need to specify how costs will be allocated during the negotiation phase
4. Governing Law Statement: Include when dealing with international parties to specify Irish law as governing law
5. Non-Circumvention: Include when there's a need to prevent parties from circumventing each other in the procurement process
1. Schedule A - Preliminary Specifications: High-level specifications of goods/services to be procured
2. Schedule B - Proposed Timeline: Detailed timeline for the procurement process and key milestones
3. Schedule C - Due Diligence Requirements: List of required documentation and information for due diligence
4. Appendix 1 - Key Commercial Terms Summary: Summary sheet of principal commercial terms proposed
5. Appendix 2 - Required Approvals: List of necessary internal and external approvals required
Authors
Relevant legal definitions
Clauses
Relevant Industries
Public Sector
Healthcare
Construction
Information Technology
Manufacturing
Professional Services
Energy
Transportation
Education
Telecommunications
Financial Services
Retail
Infrastructure
Defense
Environmental Services
Relevant Teams
Procurement
Legal
Commercial
Supply Chain
Operations
Finance
Project Management
Business Development
Risk Management
Compliance
Vendor Management
Relevant Roles
Procurement Manager
Commercial Director
Chief Procurement Officer
Legal Counsel
Contracts Manager
Supply Chain Manager
Business Development Manager
Project Manager
Operations Director
Purchasing Manager
Tender Specialist
Procurement Officer
Commercial Manager
Chief Financial Officer
Category Manager
Vendor Manager
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