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ProcureRL: A Deep Dive
Table of Contents
- What is ProcureRL?
- Why Does This Exist?
- The Big Picture Architecture
- The Three Tasks
- Data Models: What's Floating Around
- The Scripted Opponent System
- The Grading System
- The Environment Core
- The Server API
- The Inference Script
- End-to-End Example
- Docker Deployment
- Calibration and Testing
What is ProcureRL?
ProcureRL is an OpenEnv-compliant Reinforcement Learning environment where an LLM (Large Language Model) agent learns to negotiate procurement deals against scripted supplier opponents.
In simpler terms: it's a training ground for AI to practice negotiation β like a flight simulator, but for procurement conversations.
The Core Innovation: Language-Sensitive Opponent
What makes ProcureRL special is that the opponent's behavior responds to the quality of the agent's natural language, not just the prices offered. This means:
- An agent that outputs aggressive or low-effort language gets a tough, unyielding opponent
- An agent that outputs collaborative, professional language gets a more cooperative, flexible opponent
The language IS the policy β not just the action space. This makes LLM genuinely required, not incidental.
Why Does This Exist?
Real-world procurement negotiation is:
- Sequential β one decision affects the next
- Hidden utility β the opponent's real priorities are not revealed
- Language-dependent β how you say things matters as much as what you offer
- High-stakes β Walmart deployed AI (Pactum) for exactly this, 90% of CPOs adopting AI negotiation in 2025
Traditional rule-based negotiation tools are limited. An RL-trained LLM policy can learn to navigate this complexity in ways that static rules cannot.
The Big Picture Architecture
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β ProcureRL System β
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β β
β ββββββββββββββββββββ ββββββββββββββββββββ β
β β LLM Agent βββββΆβ Environment β β
β β (inference.py) β β (Procure_RL_ β β
β β β β environment.py)β β
β ββββββββββββββββββββ ββββββββββ¬ββββββββββ β
β β β
β βΌ β
β ββββββββββββββββββββ β
β β Scripted β β
β β Opponent β β
β β (opponent.py) β β
β ββββββββββ¬ββββββββββ β
β β β
β βΌ β
β ββββββββββββββββββββ β
β β Graders β β
β β (graders.py) β β
β ββββββββββββββββββββ β
β β
β ββββββββββββββββββββ ββββββββββββββββββββ β
β β Server API β β OpenEnv.yaml β β
β β (server/app.py) β β (manifest) β β
β ββββββββββ¬ββββββββββ ββββββββββββββββββββ β
β β β
β βΌ β
β ββββββββββββββββββββ β
β β Docker Container ββββ HF Spaces Deployment β
β β (port 7860) β β
β ββββββββββββββββββββ β
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The system is designed so that:
- Environment is deterministic and reproducible (seeded RNG)
- Opponent responds to language quality (via rapport system)
- Graders produce bounded [0.0, 1.0] scores
- Server exposes everything over HTTP for OpenEnv compliance
- Inference runs a baseline LLM agent against the environment
The Three Tasks
ProcureRL includes three tasks of increasing difficulty:
Task 1: single_issue (Easy)
Scenario: Software license renewal. Price only.
Buyer Target: $36,000
Seller Opens: ~$52,000 (varies by seed)
Seller Floor: ~$44,000 (varies by seed)
Max Rounds: 6
Opponent Persona: Cooperative
The agent must negotiate the price down from opening to target. The cooperative opponent starts friendly and remains fairly flexible.
Example Grading:
- Deal at $38K in round 2: ~0.85 score
- Deal at $44K in round 6: ~0.35 score
- No deal: 0.0 score
Task 2: multi_issue (Medium)
Scenario: Enterprise software negotiation with price AND payment terms.
Issues: price ($40K-$58K) + payment_days (30-90)
Opponent Persona: Cash Flow Stressed
β Cares more about getting paid quickly (payment_weight: 0.65)
β Cares less about final price (price_weight: 0.35)
Max Rounds: 8
The Strategic Opportunity: If the agent offers Net-30 or Net-45 payment terms, the opponent becomes more flexible on price. A naive agent treats both issues equally and scores low. A smart agent bundles payment speed with price negotiation.
Example Grading:
- Price $42K + Net-30 payment: ~0.60 score
- Price $42K + Net-90 payment: ~0.35 score
- No deal: 0.0 score
Task 3: adversarial (Hard)
Scenario: Large contract with three issues β price, payment, and support hours.
Issues: price + payment_days + support_hours
Opponent Persona: Aggressive Anchor
β Opens at ceiling on all issues
β Hardens position if agent makes consecutive concessions
β Rapport-sensitive but requires consistent collaborative framing
Max Rounds: 10
Survival Floor: 0.15 (completing any deal gets at least 0.15)
The Challenge: If the agent concedes on price in 2+ consecutive rounds, the opponent recognizes this pattern and becomes much harder to negotiate with. The agent must resist anchoring, break consecutive concession patterns, and maintain collaborative tone under pressure.
Example Grading:
- Strategic deal with no consecutive concessions: ~0.50 score
- Same deal but with consecutive concession pattern: ~0.40 score
- Survival deal (just complete): 0.15 score
Data Models: What's Floating Around
The system uses three Pydantic models defined in models.py:
NegotiationAction
What the agent sends to the environment:
class NegotiationAction(BaseModel):
move_type: str # "make_offer" | "accept" | "reject" | "bundle"
terms: Dict[str, Any] # {"price": 42000, "payment_days": 45}
message: str = "" # Natural language β affects opponent rapport!
Important: The message field is not just flavor text. It directly affects opponent behavior through the rapport system.
NegotiationObservation
What the environment sends back to the agent after each step:
class NegotiationObservation(BaseModel):
task_id: str # Which task we're running
round_number: int # Current round (0 to max_rounds)
max_rounds: int # Task's round limit
supplier_message: str # Opponent's latest message
current_offer: Dict[str, Any] # Terms currently on the table
last_4_exchanges: List[Dict] # Recent conversation history
buyer_constraints: Dict[str, Any] # Agent's targets and limits
rapport_hint: str # "positive" | "neutral" | "negative"
done: bool # Is episode finished?
reward: Optional[float] = None # Reward (only on done)
metadata: Dict[str, Any] = Field(...) # Extra info (deal_price, errors)
NegotiationState
The environment's internal state (accessible via env.state):
class NegotiationState(BaseModel):
task_id: str = ""
episode_id: str = ""
round_number: int = 0
rapport_score: float = 0.5 # 0.0 to 1.0, starts neutral
consecutive_concessions: int = 0 # Tracks concession patterns
deal_reached: bool = False
final_terms: Optional[Dict] = None # Set when episode ends
cumulative_reward: float = 0.0
The Scripted Opponent System
The opponent is implemented in opponent.py as the ScriptedPersonaOpponent class.
The Rapport System (Language Sensitivity)
The key mechanism is rapport β a score from 0.0 to 1.0 that changes based on the agent's language quality.
Collaborative Signals (increase rapport):
COLLABORATIVE_SIGNALS = [
"understand", "partnership", "mutual", "together", "value",
"appreciate", "flexible", "work with", "long-term", "relationship",
"reasonable", "fair", "both", "solution"
]
Aggressive Signals (decrease rapport):
AGGRESSIVE_SIGNALS = [
"demand", "require", "final offer", "unacceptable", "must",
"non-negotiable", "take it or leave", "bottom line", "ultimatum",
"insist", "refuse", "absolutely not"
]
How it works:
def update_rapport(self, agent_message: str) -> None:
msg_lower = agent_message.lower()
delta = 0.0
delta += sum(0.08 for w in COLLABORATIVE_SIGNALS if w in msg_lower)
delta -= sum(0.08 for w in AGGRESSIVE_SIGNALS if w in msg_lower)
delta = max(-0.20, min(0.20, delta)) # Cap per-round change
self.rapport = max(0.0, min(1.0, self.rapport + delta))
Every message the agent sends adjusts rapport by Β±0.08 per keyword detected, capped at Β±0.20 per round.
Concession Rate: How Fast the Opponent Moves
Rapport directly modifies the opponent's concession rate:
def get_concession_rate(self) -> float:
base_rates = {
"cooperative": 0.05, # 5% per round base
"cash_flow_stressed": 0.07,
"aggressive_anchor": 0.04,
}
base = base_rates[self.persona]
modifier = (self.rapport - 0.5) * base # +/- 50% of base
return max(0.01, base + modifier)
Example: Cooperative opponent with high rapport (0.8) concedes at 0.05 + (0.8 - 0.5) Γ 0.05 = 7.5% per round. With low rapport (0.2), concedes at 0.05 + (0.2 - 0.5) Γ 0.05 = 2.5% per round.
Three Personas
1. Cooperative (single_issue)
- Friendly, understanding tone
- 5% base concession rate, highly sensitive to rapport
- Accepts early if price is above floor and round β₯ 2
2. Cash Flow Stressed (multi_issue)
- Cares about payment timing more than price
- 7% base concession rate, moderate rapport sensitivity
- Acceptance requires
payment_days β€ 45 - Comments on payment timing in responses
3. Aggressive Anchor (adversarial)
- Opens at ceiling, hardens with pressure
- 4% base concession rate (least flexible)
- Penalizes consecutive concessions β if agent concedes 2+ rounds in a row, concession rate drops to 40% of normal
- Uses "hardening" templates when cornered
Opponent Response Flow
def respond(self, agent_message, agent_terms, round_number, consecutive_concessions):
# 1. Update rapport based on agent's language
self.update_rapport(agent_message)
# 2. Check acceptance (only after round 2, and price must be β₯ floor)
if round_number >= 2 and agent_price >= self.price_floor and _acceptance_condition():
return self.templates["accept"], {**agent_terms, "_accepted": True}
# 3. Calculate concession rate
concession = self.get_concession_rate()
# 4. Aggressive anchor gets harder if detecting concession pattern
if self.persona == "aggressive_anchor" and consecutive_concessions >= 2:
concession = concession * 0.4 # 60% reduction!
template_key = "hardening"
elif round_number >= 70% of max_rounds:
template_key = "near_close"
else:
template_key = "counter"
# 5. Compute new position
new_position = self.current_position * (1 - concession)
new_position = max(self.price_floor, new_position) # Never go below floor
# 6. Return message and counter terms
return message, counter_terms
The Grading System
Graders are in graders.py and produce scores in [0.0, 1.0]. They are pure Python β zero LLM calls, ensuring deterministic, reproducible scoring.
Key Design: Relative Scoring
The graders score based on how much the agent improved from the opponent's opening price, not on absolute thresholds. This makes the environment learnable β the agent learns to negotiate better deals relative to where negotiations started.
# Instead of scoring against a hardcoded floor, we score relative to the opening:
value = (opponent_opening - final_price) / (opponent_opening - BUYER_TARGET)
Single Issue Grading
def grade_single_issue(final_terms, deal_reached, rounds_taken, max_rounds=6, opponent_opening=52000.0):
if not deal_reached:
return 0.0
final_price = final_terms.get("price", opponent_opening)
BUYER_TARGET = 38000.0
# If price didn't improve from opening, minimal score
if final_price >= opponent_opening:
return 0.05
# How much did we improve relative to the possible improvement?
value = (opponent_opening - final_price) / (opponent_opening - BUYER_TARGET)
value = max(0.0, min(1.0, value))
# Efficiency penalty for taking too long
efficiency = 1.0 - (rounds_taken / max_rounds) ** 1.5 * 0.4
efficiency = max(0.1, efficiency) # Never below 0.1
return round(value * efficiency, 4)
Example:
- Opening: $52,000, Target: $38,000, Range: $14,000
- Final price: $45,000 β improvement: $7,000 β value = 0.50
- Round 3 β efficiency = 1.0 - (3/6)^1.5 Γ 0.4 = 0.71
- Score: 0.50 Γ 0.71 = 0.36
Multi-Issue Grading
def grade_multi_issue(final_terms, deal_reached, rounds_taken, max_rounds=8, opponent_opening=52000.0):
# Two dimensions: price (70% weight) and payment_days (30% weight)
price_value = (opponent_opening - final_price) / (opponent_opening - 40000)
payment_score = (90 - payment_days) / (90 - 30)
value = 0.70 * price_value + 0.30 * payment_score
# If price didn't improve but payment did, still score on payment
if final_price >= opponent_opening:
value = 0.30 * payment_score # Only payment matters
Example:
- Price: $44,000 (good), Payment: Net-45 (good) β price_value=0.64, payment_score=0.75
- value = 0.70Γ0.64 + 0.30Γ0.75 = 0.67
Adversarial Grading
def grade_adversarial(final_terms, deal_reached, rounds_taken, consecutive_concessions_flag, ...):
SURVIVAL_FLOOR = 0.15 # Completing any deal gets at least 0.15
# Three dimensions with weights
value = 0.40 * price_value + 0.35 * payment_score + 0.25 * support_score
# Pattern penalty: bad if you showed consecutive concessions
pattern_penalty = 0.10 if consecutive_concessions_flag else 0.0
raw = (value * efficiency) - pattern_penalty
return round(max(SURVIVAL_FLOOR, raw), 4)
The Environment Core
The ProcureRLEnvironment class in server/Procure_RL_environment.py is the heart of the system.
Reset Flow
def reset(self, seed=None, episode_id=None, **kwargs):
task_id = kwargs.get("task_id", "single_issue")
# 1. Set up opponent with seeded RNG
opponent_seed = hash((seed, task_id)) % (2**32)
self._opponent = ScriptedPersonaOpponent(task_id=task_id, seed=opponent_seed, persona=...)
# 2. Get opponent's opening message and terms
opening_msg, opening_terms = self._opponent.get_opening_message()
self._opponent_opening_price = opening_terms.get("price", 52000.0)
# 3. Initialize state
self._state = NegotiationState(
task_id=task_id,
episode_id=episode_id or str(uuid.uuid4())[:8],
round_number=0,
rapport_score=0.5, # Neutral
...
)
# 4. Return initial observation
return NegotiationObservation(
...
supplier_message=opening_msg,
current_offer=opening_terms,
...
)
Step Flow
def step(self, action, **kwargs):
# 1. Validate action
if not isinstance(action, NegotiationAction):
action = NegotiationAction(...) # Convert from dict
# 2. Track consecutive concessions (for adversarial opponent)
if self._prev_agent_price is not None and "price" in action.terms:
if float(action.terms["price"]) > self._prev_agent_price:
self._consecutive_concessions += 1 # Agent moved toward opponent
else:
self._consecutive_concessions = 0
self._prev_agent_price = float(action.terms["price"])
# 3. Handle different move types
if action.move_type in ("make_offer", "bundle"):
# Get opponent response
opponent_msg, opponent_terms = self._opponent.respond(...)
# Check if opponent accepted
if opponent_terms.get("_accepted"):
# Episode ends, compute reward
reward = grade(...)
return obs_with_reward
# Otherwise, continue negotiation
self._last_offer = opponent_terms
return obs_with_current_state
if action.move_type == "accept":
# Agent accepts current terms, episode ends
reward = grade(...)
return obs_with_reward
if action.move_type == "reject":
if round_number >= max_rounds:
# Rejected at limit, no reward
return obs_done_no_reward
return obs_continue # Rejected early, keep going
State Property
@property
def state(self) -> NegotiationState:
return self._state
Returns the internal NegotiationState object, giving access to:
round_numberrapport_scoreconsecutive_concessionsdeal_reachedfinal_termscumulative_reward
The Server API
The FastAPI server in server/app.py exposes the environment over HTTP and WebSocket.
Endpoints
| Endpoint | Method | Description |
|---|---|---|
/health |
GET | Health check |
/reset |
POST | Reset environment with task_id and seed |
/step |
POST | Execute an action |
/state |
GET | Get current NegotiationState |
/ws |
WS | WebSocket for persistent sessions |
Request/Response Examples
POST /reset
// Request
{"task_id": "single_issue", "seed": 42}
// Response
{
"task_id": "single_issue",
"round_number": 0,
"max_rounds": 6,
"supplier_message": "Thanks for reaching out. Our standard pricing for this package is $52,400. Happy to discuss.",
"current_offer": {"price": 52400.0},
"buyer_constraints": {"price": {"target": 36000, "worst": 55000, "budget": 53000}},
"rapport_hint": "neutral",
"done": false
}
POST /step
// Request
{"move_type": "make_offer", "terms": {"price": 48000}, "message": "I appreciate your flexibility and would like to find a fair price for both parties."}
// Response
{
"observation": {
"task_id": "single_issue",
"round_number": 1,
"max_rounds": 6,
"supplier_message": "I appreciate you working with us. Based on our costs, $49,800 is where we can be.",
"current_offer": {"price": 49800.0},
"rapport_hint": "positive",
"done": false
},
"reward": 0.0,
"done": false,
"info": {}
}
Key Implementation Detail: Lambda Closure
_env_instance = ProcureRLEnvironment()
app = create_app(
lambda: _env_instance, # Lambda is CRITICAL - creates new env per request otherwise
NegotiationAction,
NegotiationObservation,
env_name="ProcureRL",
max_concurrent_envs=1,
)
Without the lambda, create_app() would call the function for each request, getting a fresh environment every time instead of reusing the same one. The lambda creates a closure over _env_instance so all requests share the same environment.
The Inference Script
inference.py is a baseline agent that runs an LLM against the environment.
Output Format (Sacred)
The script MUST output exactly:
[START] task=single_issue env=procure-rl model=Qwen/Qwen2.5-72B-Instruct
[STEP] step=1 action=make_offer({"price": 45000}) reward=0.00 done=false error=null
[STEP] step=2 action=accept({}) reward=0.47 done=true error=null
[END] success=true steps=2 score=0.47 rewards=0.00,0.47
Any deviation from this format causes validation to fail.
How It Works
def run_task(task_id):
env = ProcureRLEnvironment()
obs = env.reset(task_id=task_id, seed=42)
print(f"[START] task={task_id} ...")
while not done and step < MAX_STEPS:
# 1. Get action from LLM
action_dict = get_agent_action(obs_to_dict(obs))
# 2. Convert to NegotiationAction
action = NegotiationAction(
move_type=action_dict.get("move_type", "make_offer"),
terms=action_dict.get("terms", {}),
message=action_dict.get("message", "")
)
# 3. Step environment
obs = env.step(action)
# 4. Print step result
print(f"[STEP] step={step} action={...} reward={obs.reward:.2f} ...")
if obs.done:
final_score = obs.reward
break
print(f"[END] success={...} steps={step} score={final_score:.2f} ...")
LLM Prompt
SYSTEM_PROMPT = """You are a professional procurement negotiator. Your goal is to negotiate the best possible deal for your company.
You will receive a supplier's message and current offer terms. You must respond with a JSON action:
{
"move_type": "make_offer",
"terms": {"price": 42000, "payment_days": 45},
"message": "Your natural language response to the supplier"
}
move_type must be one of: make_offer, accept, reject, bundle
message should be professional and collaborative when possible."""
End-to-End Example
Here's a full negotiation episode for single_issue:
Round 0: Reset
env.reset(task_id="single_issue", seed=42)
# Returns:
# supplier_message: "Thanks for reaching out. Our standard pricing for this package is $52,400..."
# current_offer: {"price": 52400.0}
# buyer_constraints: {"price": {"target": 36000, ...}}
# rapport_hint: "neutral"
Round 1: Agent Makes Offer with Collaborative Language
action = NegotiationAction(
move_type="make_offer",
terms={"price": 48000},
message="I value our potential partnership and believe we can find a fair price that works for both of us. We're flexible on timeline."
)
obs = env.step(action)
# Returns:
# supplier_message: "I appreciate you working with us. Based on our costs, $49,600 is where we can be."
# current_offer: {"price": 49600.0}
# rapport_hint: "positive" (because message contained collaborative signals)
# reward: 0.0 (still negotiating, no reward yet)
Round 2: Agent Concedes
action = NegotiationAction(
move_type="make_offer",
terms={"price": 47000},
message="I understand your cost constraints. Let's work together to find a solution."
)
obs = env.step(action)
# Returns:
# supplier_message: "I think we're close. If you can do $46,700, I can get this approved today."
# current_offer: {"price": 46700.0}
# rapport_hint: "positive"
Round 3: Agent Concedes Again (Consecutive!)
action = NegotiationAction(
move_type="make_offer",
terms={"price": 46000},
message="We can move to $46,000 as a final compromise."
)
obs = env.step(action)
# Returns:
# supplier_message: "That works for us. Let's move forward at those terms."
# done: true
# reward: 0.52 (good score for getting to $46K efficiently)
# info: {"deal_price": 46000}
Grading This Episode
- Opening: $52,400
- Target: $36,000
- Range: $16,400
- Improvement: $52,400 - $46,000 = $6,400
- value = $6,400 / $16,400 = 0.39
- Round 3 β efficiency = 1.0 - (3/6)^1.5 Γ 0.4 = 0.71
- Score: 0.39 Γ 0.71 = 0.28
Docker Deployment
Dockerfile
FROM python:3.11-slim
WORKDIR /app
COPY requirements.txt .
RUN pip install --no-cache-dir -r requirements.txt
COPY . .
ENV PORT=7860
EXPOSE 7860
CMD ["python", "-m", "uvicorn", "server.app:app", "--host", "0.0.0.0", "--port", "7860"]
Key points:
- Port 7860 (not 8000) β required by HF Spaces
ENV PORT=7860β tells the app which port to listen on- Uses
python -m uvicornwith full module path
Running
# Build
docker build -t procure-rl .
# Run
docker run -p 7860:7860 procure-rl
# Test
curl -X POST http://localhost:7860/reset -H "Content-Type: application/json" -d '{"task_id": "single_issue"}'
Health Check
The server exposes a health endpoint:
GET /health β {"status": "ok", "service": "procure-rl"}
Calibration and Testing
Test Files
test_graders.py
Verifies all graders return scores in [0.0, 1.0] range, even with edge cases.
test_rl_properties.py
Tests fundamental RL properties:
- Reproducibility: Same seed β Same opening message
- Language sensitivity: Collaborative language β Higher rapport
- Sequential decisions: Consecutive concessions tracked in state
- Delayed reward: Only terminal state has non-zero reward
- Accept terminates:
move_type="accept"ends episode - Reset cleans state: Fresh state after reset
test_calibration.py
Verifies score spread between random and strategic agents:
single_issue: Random avg=0.371, Strategic avg=0.487, Spread=0.116 β
multi_issue: Random avg=0.364, Strategic avg=0.535, Spread=0.171 β
adversarial: Random avg=0.304, Strategic avg=0.607, Spread=0.303 β
A healthy spread means the environment actually differentiates good vs bad behavior.
Score Calibration Targets
| Task | Random Agent | Base LLM | Goal (Trained) |
|---|---|---|---|
| single_issue | 0.15β0.25 | 0.35β0.45 | 0.68β0.78 |
| multi_issue | 0.08β0.15 | 0.20β0.30 | 0.55β0.65 |
| adversarial | 0.03β0.10 | 0.12β0.20 | 0.45β0.55 |
Summary: How Everything Fits Together
User runs inference.py
β
βΌ
LLM agent receives observation (supplier message, current offer, constraints)
β
βΌ
LLM decides action (make_offer with terms + collaborative message)
β
βΌ
Environment.step(action) is called
β
βββΆ Opponent responds (language β rapport β concession rate β counter)
β
βββΆ State is updated (round_number++, rapport_score, consecutive_concessions)
β
βββΆ Observation returned (supplier_message, current_offer, rapport_hint)
β
βΌ
If episode done: Grader scores the deal (relative to opening price, efficiency, patterns)
β
βΌ
Score in [0.0, 1.0] returned
The agent learns through many episodes:
- What language gets better rapport β better concession rates
- When to concede vs hold β efficiency bonus
- How to bundle multiple issues β multi-issue tasks
- How to avoid consecutive concession patterns β adversarial task
The environment is designed to be learnable but not trivial β requiring genuine strategic thinking from an LLM agent.