News

New OGC/HMT guidance to facilitate better use of the competitive dialogue procedure

Released on 03/06/2008

The Office of Government Commerce (OGC) and the Treasury (HMT) have published further practical guidance to assist contracting authorities with the competitive dialogue procedure, which is used when procuring complex projects.

Introduced by UK Regulations in January 2006, competitive dialogue allows contracting authorities to discuss all aspects of the proposed contract with prospective bidders. The new guidance aims to clarify a number of issues, with a view to lead to a reduction in the time and cost of many public sector procurements.

The introduction of the new guidance complements previous guidelines and follows extensive discussions with parties working on complex public sector projects, including contracting authorities, financial and legal advisors, and contractors. The new guidance provides additional advice based on the practical experience of those who have undertaken the procedure.

The guidance addresses the need to consider legal boundaries more carefully, and it covers technical issues such as protection of intellectual property and the scope for discussion once dialogue has been formally closed.

Commenting on the new guidance the OGC's Executive Director of Policy, Standards and Capability, Sally Collier said:

"The new guidance should help all parties to use competitive dialogue to the best effect in the most efficient way possible. This guidance should help to raise further the standards in this important and challenging area".

Notes to Editors

About competitive dialogue

The new guidelines can be accessed from the OGC website.

Background

• The competitive dialogue procedure was introduced in the UK in January 2006 through the Public Contracts Regulations 2006.
• The procedure was adopted at EU level in 2004 through Directive 2004/18/EC, which covers procedures for the award of public sector contracts.
• Competitive dialogue is only available for the award of particularly complex contracts.
• Before 2004, EU member states often used the competitive negotiated procedure for complex contracts. The European Commission questioned this practice, as the competitive negotiated procedure is only available for use in exceptional circumstances.

New guidance

• The new guidance is approximately 30 pages long and aimed specifically at contracting authorities, which are using or are preparing to use the competitive dialogue procedure. 
• The guidance is specific to competitive dialogue and has no sector bias. It complements rather than replaces previous guidance, and it provides links to other relevant information.
• It stresses the importance of ensuring that competitive dialogue is the correct procedure for the procurement in question.
• The new guidance provides practical advice to help ensure that projects stay within their initial scope throughout the procurement process.
• It highlights the need for extensive planning in advance of the procurement process, which can reduce the overall time and cost of tenders.
• It encourages early engagement with the supply market.
• It also describes approaches for structuring the dialogue stages of the process.

Earlier guidance

• The OGC published guidance in January 2006 when the regulations came into force, and since then has published further information including a Procurement Policy Note and a case study.
• Other parts of the public sector have also published guidance on the procedure, tailored to their specific sector. Examples include: Building Schools for the Future guidance on how to conduct a competitive dialogue procedure and Department of Health PFI guidance on how to conduct a competitive dialogue procedure.
• The European Commission has published an explanatory note on competitive dialogue.

About OGC

The Office of Government Commerce (OGC) leads government departments and the wider public sector to make improvements in buying goods and services. As an office of HM Treasury, the OGC works with central Government departments, and other public sector organisations, to ensure the achievement of five key goals:

• Delivery of value for money from third party spend;
• Delivery of projects to time, quality and cost; realising benefits;
• Getting the best from the Government's £30bn estate; 
• Driving forward the improvement of central Government capability in procurement, Project and Programme Management, and estates management through the development of people skills, processes and tools; 
• Assisting departments in the delivery of Government's policy goals on sustainability, innovation, equality and support for small and medium sized enterprises.

OGC is an expert in providing guidance and standards on procurement best practice, fostering productive partnerships and realising the benefits of collaborative solutions to meet the buying needs of the public sector.

It provides innovative ways to develop further central Government's capability in procurement, and leads the Government Procurement Service, which supports those operating as procurement professionals and those working towards gaining professional status within the civil service.

Media Contact:
Michael Dunning
T: 020 7271 1318
F: 020 7271 1345
E: press@ogc.gsi.gov.uk

Contact details:
OGC Service Desk
Tel: 0845 000 4999
E-mail: ServiceDesk@ogc.gsi.gov.uk