Competitive Dialogue

A procurement procedure allowing public bodies to develop solutions through structured dialogue with selected suppliers before requesting final tenders.

How it works

Competitive Dialogue is a procurement procedure where contracting authorities engage in structured discussions with pre-selected suppliers to develop and define solutions before inviting final tenders. The process begins with publishing a contract notice and pre-qualifying candidates based on selection criteria. Selected participants then enter dialogue phases where they can discuss all aspects of the contract with the contracting authority.

During dialogue, suppliers may submit initial solutions which are refined through iterative discussions. The authority can reduce the number of participants at successive stages, provided this was stated in the procurement documents. Once the authority declares the dialogue closed, remaining participants submit final tenders based on the developed solutions.

When to use it

Under the Public Contracts Regulations 2015, Competitive Dialogue is particularly suitable for complex contracts where the authority cannot define technical specifications with sufficient precision upfront, or where the legal or financial make-up cannot be established without prior technical solutions. Common applications include major infrastructure projects, complex IT systems, or innovative service delivery models.

Key requirements

The procedure must maintain equal treatment throughout, with the same information provided to all participants at each stage. Confidentiality is crucial - solutions and information from one participant cannot be disclosed to others without consent. The authority must clearly define award criteria from the outset, typically using the most economically advantageous tender approach.

Why it matters

Competitive Dialogue enables public bodies to procure complex, innovative solutions while maintaining competitive tension and achieving value for money. It provides flexibility to develop optimal solutions collaboratively whilst ensuring transparency and fairness in the procurement process.