Competitive Flexible Procedure

What is the competitive flexible procedure?

  • Any competitive procedure you consider appropriate to award the public contract.
  • Buyers must explain in the tender notice the process they intend to use to run the procedure.
    • This could be as simple as running a process akin to a restricted, i.e., a simple two stage process with no scope for negotiation.
    • Or they could tailor the process to include negotiation or dialogue.
    • They could invite tenders from all and then invite the top scores to negotiate and determine the MAT following best and final tenders.
  • There is lots of potential, and it gives buyers the freedom to use their commercial skills to get the best from the market.

Why two competitive tender procedures?

  • The Procurement Act consolidates a number of currently separate regulations; the new rules needed to be flexible enough to cover them all.
  • The Cabinet Office also wanted to give contracting authorities flexibility to use their commercial skills to get the best for their procurement.
  • The open remains as a standalone procedure.
  • The competitive flexible is a balance – there is freedom, but there remains scope to run a straightforward procedure.

Example process without a separate participation stage

Example competitive flexible with limited negotiation

Tools or processes buyers could use in a competitive flexible procedure.

Competitive flexible that is a simple two stage tendering procedure

  1. Preliminary market engagement, develop procurement strategy, prepare tender notice, and associated tender documents.
  2. Publish tender notice and any associated tender documents inviting requests to participate.
  3. Following the participation period, receive requests to participate, assess conditions of participation, exclusions and any other objective criteria set to limit suppliers.
  4. Inform suppliers who will not be invited to tender.
  5. Invite those who have made it through the participation stage to tender by issuing the invitation to tender.
  6. Following the tendering period, and once you have received the tenders, evaluate tenders against the award criteria and determine the most advantageous tender (MAT)
  7. Inform suppliers of the outcome and issue assessment summaries
  8. Publish the contract award notice (triggering the mandatory or voluntary standstill period where appropriate, with a minimum of 8 working days)
  9. Publish the contract details notice and a copy of the contract (if required).

How?

Use it responsibly:

  • Need to be useful – but don’t run away with IP and USPs: no bidder likes to see their good ideas replayed verbatim as a contract requirement.
  • Don’t just pay it lip service: bidders won’t engage fully in the process if they cannot see any impact.
  • Don’t create a problem for potential bidders:
  • Must treat the supplier as an excluded supplier if the PME has put the supplier at an unfair advantage / advantage cannot be avoided (see section 16(4) and (5))
  • Don’t rush it: need time to incorporate results into the design or substance of the competition.

Different methods

  • Surveys, questionnaires, B2B meetings, webinars, conferences, presentations, interviews, demonstrations, site visits etc.
  • Can be quite arms-length or involved.
  • Keep a record (see section 98)
  • Consider feeding back and publish results- to avoid an advantage being conferred.

When?

  • Section 16(1): BEFORE publishing a tender notice (can be after the planned procurement notice – see section 15).
  • Built into the procurement programme.
  • Must publish a ‘preliminary market engagement notice if carrying out PME (s 17(1))
  • Before tender notice OR provide reasons why you didn’t PME in the tender notice (s 17(1)(b))

When?

Section 16(1) Procurement Act 2023:

  • Develop the requirements and approach to the procurement.
  • Designing the procedure (including conditions of participation / award criteria)
  • Preparing the tender notice and tender documents
  • Identifying potential suppliers
  • Identifying likely contractual terms
  • Building capacity among suppliers in relation to the contract
  • Can help:
    • Openly and transparently discuss the procurement and get a better understanding of the issues.
    • Design of the competition and timing: is it going to work for your bidders?
    • Warm up the marketplace: get them excited in the opportunity.
    • Help articulate the requirement – how much is it going to cost / what are the barriers to overcome.
    • Opportunities for innovation, social value, net zero aspects

This flowchart demonstrates the notices and other information that you may publish throughout the end-to-end procurement lifecycle (depending on the procurement procedure followed, the nature of the contract and I or the contracting authority). This is for illustrative purposes only.

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