Competitive Dialogue in

Procurement

Dr David MoseyTrowers & Hamlins LLP

What is Competitive Dialogue?

• Competitive Dialogue (CD) is an EU procurement process, an alternative to the Restricted Procedure

• Not as scary/expensive as clients/bidders may think• Flexible procedure after prequalification – for example,

Invitation to Submit Detailed Solutions/dialogue with minimum of three bidders/Best and Final Offers

• Trowers & Hamlins have devised “lean” version of CD used with Affinity Sutton and echelon

When is Competitive Dialogue suitable?

• For a “particularly complex contract” where client cannot define technical means capable of satisfying its needs or objectives or specify either the legal or financial make up of the project

• Housing procurements suitable for CD where delivery structures/solutions not predetermined by the client

• Allows client to negotiate on key deliverables in a controlled and succinct way and to overcome inflexibility of Restricted Procedure

Context of the Affinity Sutton Competitive Dialogue

• Affinity Sutton building on experience of partnering (TPC2005) and of DLO (CBS)

• Options of wholly-owned subsidiary/joint venture/ conventional partnering contract dependent on detail of bidders’ proposals

• CD used to explore alternative options, including strength/ viability of attractive wholly-owned subsidiary model

Nick DudmanAffinity Sutton Group

Affinity Sutton55,000 homes, 3 repairs contracts, 1 DLO

Objectives

•Rationalise the geography•Refresh the cost •Benchmark the DLO•Simplify the management •Revise the incentives

• Fully developed contract structure from the start

• 5 panels, 3 contractors

• Project manager, logistics and cost

• Sticking to the timetable

Competitive Dialogue – the process

Lessons learned

• Panel membership, communication, consistency

• Residents’ role• Confidentiality – enhanced risk of slip-ups• It’s not an interview – or is it?• Improved comprehension• Project management and expert support

Mathew Baxterechelon Consultancy Ltd

The ASG Process

• Development of bespoke Price Per Property (PPP) Model – new to market

• Draw out risk elements through process• Focus on incentivisation through model• Flexibility for different delivery models (i.e.

isolation of labour/overhead/profit)• Detailed Term Brief developed with full stakeholder

input• Use of CD process to hone the delivery model and

PPP

Critical Milestones

• Preparation Stage – develop specific project team with project manager and resources & dates clearly identified upfront

• ISDS Stage – well developed Term Brief/PPP/KPI Handbook use of bidders day

• Evaluation Stages – full stakeholder involvement in scoring each solution

• CD Stage – clear structure and themes (full agenda/notes) – prescriptive on attendees

• BAFO Stage – workshop to review outcomes of CD stage, informs the BAFO documents, awareness of commercial sensitivities

Critical Success Factors

• Allow enough time – CD no more than 2 months over RP

• Scope properly (don’t hide behind CD!)• Go into CD stage with developed delivery model(s)• Ensure continuity and support of stakeholders involved

at all stages • Allocate necessary internal resources (dedicated client

project manager)• Use of shared IT platform (e.g. SharePoint)• Structure the dialogue stage – great opportunity to

inform the process

Contacts

Dr. David Mosey – dmosey@trowers.com

www.trowers.com

Nick Dudman - Nick.Dudman@affinitysutton.com

www.affinitysutton.com

Mathew Baxter – mathew@echelonconsultancy.co.uk

www.echelonconsultancy.co.uk