GAR (UK) Limited
Tel: 01691 652831 Or 07889137444
Independent Consultants Interim Management
• What is Competitive Dialogue
Competitive Dialogue is a bidding procedure that sits between Competitive Negotiation and Restricted procedures. It was introduced in 2004 through the European Directive (2004/18/EC) and into the UK 2006 through Statutory Instrument No5 (No1 in Scotland) and set out in the Public Contracts Regulations 2006 and Public Contracts Scotland Regulations 2006.
The approach as similar to that of ‘Restricted’ up to and including the PQQ stage, also in a shortened final tender process following dialogue.
• Where is it used
The Procedure is now gaining momentum in the Public Sector where the benefits are being realised, the costs controlled and the risks understood. It is also used effectively in the Private sector for complex projects.
• When is it used
The Procedure was introduced for application when the buyer cannot objectively define the technical means capable of satisfying the objectives, or is unable to objectively specify the legal or financial make-up of a project.
What is the process
Following selection of Suppliers with the capability, capacity and resources to meet the objectives, an Invitation to Participate in Dialogue [ITPD] is issued followed by a launch conference. Competitive Dialogue is an interactive and iterative process throughout dialogue based on collaborative development with Suppliers through a series of pre-planned workshops and 1:2:1 sessions.
Dialogue can be in a single phase or multiple phases and include interim solutions which may be formally evaluated resulting in the down selection of suppliers.
What are the benefits
The key benefit is the specialist information and expertise available to provide detailed technical, operational and financial development of the solution(s) through an open, interactive and iterative process which is invaluable to the understanding of the business and design requirements. Alternatives and ‘what ifs’ can be investigated during the process to verify particular technical or cost improvement ideas.
What are the risks
Management challenges include stimulating open interaction whilst maintaining confidential IP, trade secrets and commercial information. Also managing the process to maximise benefit whilst maintain true competition in the final tender stage.
Thorough pre-planning is essential to maximise benefit and avoid unnecessary resource costs. Close attention should be given to allocating the most appropriate team with a concise brief each individually positioned to participate when their area of expertise is required during the procedure.
There is a very clear risk of failure if a communication strategy and procedures are not defined at an early stage, then effectively resourced, fully understood throughout the team and efficiently applied.
The Competitive Dialogue procedure must be conducted with transparency, with all Suppliers treated equally and without any discrimination. Any failure may result in legal challenge.
GAR (UK) has structured and conducted Competitive Dialogue procurement model for ICT system projects and the outsource of business services. We are well positioned to help your organisation achieve the benefits, avoid procedural risk and minimise costs.