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What is the Meaning of Dialogue Competition?

Published in Procurement Method 3 mins read

Dialogue competition, also known as Competitive Dialogue, is a specific procurement procedure used primarily in public sector contracting. It is a method that allows the awarding authority to engage in a structured dialogue with potential suppliers to develop suitable solutions for complex projects where standard tender procedures or negotiated procedures without prior publication are not appropriate.

Understanding Competitive Dialogue

At its core, Competitive Dialogue is designed for situations where the authority knows what it needs but doesn't know how best to achieve it, or where the technical specifications or legal/financial makeup of the project are too complex to be defined precisely upfront.

Based on the provided reference:

  • Competitive Dialogue allows bidders to submit initial solutions after being successful at the selection stage.
  • It allows you to negotiate proposed solutions with bidders.
  • This may help to open up cross-border markets by encouraging bidders to discuss possible solutions.

How the Process Works

The Competitive Dialogue procedure typically follows several key stages:

  1. Selection Stage: Potential suppliers are invited to tender and are selected based on their capability and experience.
  2. Dialogue Stage: The authority engages in dialogue with the selected bidders to develop and refine potential solutions. This is an iterative process where different aspects of the project and proposed solutions are discussed and clarified.
  3. Final Tender Submission: Once the dialogue concludes and the authority has identified the solution(s) capable of meeting its needs, bidders are asked to submit final tenders based on the refined solution(s).
  4. Evaluation and Award: The final tenders are evaluated based on the predefined award criteria, and a contract is awarded to the winning bidder.

Why Use Competitive Dialogue?

This procedure is particularly useful for:

  • Large infrastructure projects
  • Complex IT systems
  • Public-private partnerships (PPPs)
  • Projects requiring innovative solutions

It provides flexibility and allows both the authority and the bidders to explore different technical, legal, and financial options before committing to a final solution. The negotiation aspect ensures that the final solution is robust, realistic, and meets the authority's specific requirements.

Benefits

Aspect Benefit
Solution Clarity Develops clear, tailored solutions for complex needs.
Innovation Encourages bidders to propose novel and efficient approaches.
Risk Mitigation Addresses potential issues and clarifies uncertainties during dialogue.
Market Engagement Fosters discussion and can facilitate participation across borders.

In summary, dialogue competition (Competitive Dialogue) is a procurement method specifically designed for complex projects, enabling authorities to select potential partners, engage in dialogue to refine solutions, and ultimately procure the most suitable outcome through a structured, negotiated process.

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