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<aside> <img src="https://s3-us-west-2.amazonaws.com/secure.notion-static.com/e0c0299b-feee-479e-ae01-26f317243ddd/Ellipse_2_(2).svg" alt="https://s3-us-west-2.amazonaws.com/secure.notion-static.com/e0c0299b-feee-479e-ae01-26f317243ddd/Ellipse_2_(2).svg" width="40px" /> Competitive dialogue allows the contracting authority to discuss, and sometimes even negotiate, an assignment with potential bidders. This process usually consists of two phases: a dialogue phase and a bidding phase.
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Many procurement teams within London boroughs are familiar with the competitive dialogue, and the competitive procedure with negotiation. However, its application in technology contracts, especially for innovative products or services, remains limited.
For a more detailed breakdown of the competitive dialogue, and the competitive procedure with negotiation, look at the guidance from GCF, as part of the Outsourcing Playbook.
The innovation potential of this procedure consists in the wide range of solutions that can be proposed by the participants. By engaging into a close and thorough negotiation with the public procurer, candidates should have enough time to receive all relevant information from the public procurer that is necessary for satisfying its need and for providing a tailor-made innovative solution. The innovative character may consist in technical, financial or administrative aspects or in completely reshuffling the operational process of the public procurer.
The competitive dialogue is a two-round procedure. The authority describes its needs in a descriptive document or contract notice, sets the minimum requirements for candidates and defines the contract award criteria.
Following a PQQ phase, the authority initiates a 'competitive' dialogue with the selected candidates. The negotiation takes place individually with each candidate, ensuring confidentiality of each solution, if required by the participants. The authority is encouraged to set milestones that help evaluate the progress of negotiations and eventually create a shortlist of the candidates.
Having completed dialogues with selected suppliers, authorities then can design a full set of specifications, including award criteria, which will be used to run a tendering process.
When looking to drive innovation in their technology contracts, boroughs should consider how to run the negotiation phase in a way that is optimised for buying good technology. This includes using the negotiation as a way to see the product or service in action (if it exists), or to see wireframes, data architectures and process flows (if it does not). Having face-to-face time with suppliers can sometimes be the best way to allow them to showcase how they can add value and deliver on the contract requirements.