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Quantity Surveyor’s Pocket Book
Competitive dialogue – the introduction of this procedure addresses the need to grant, in the opinion of the European Commission, contracting authorities more flexibility to negotiate on Public Private Partnership (PPP) projects. Some contracting authorities have complained that the existing procurement rules are too inflexible to allow a fully effective tendering process. Undoubtedly, the degree of concern has depended largely on how a contracting authority has interpreted the procurement rules as there are numerous examples of Public Private Partnership projects which have been successfully tendered since the introduction of the public procurement rules using the Negotiated Procedure. However, the European Commission recognised the concerns being expressed, not only in the UK but also across Europe, and it has sought to introduce a new procedure which will accommodate these concerns. In essence, the new competitive dialogue procedure permits a contracting authority to discuss bidders’ proposed solutions with them before preparing revised specifications for the project and going out to bidders asking for modified or upgraded solutions. This process can be undertaken repeatedly until the authority is satisfied with the specifications that have been developed. Some contracting authorities are pleased that there is to be more flexibility to negotiations; however, for bidders this reform does undoubtedly mean that tendering processes could become longer and more complex. This in turn would lead to more expense for bidders and could pose a threat to new entrants to the PPP market as well as existing players. According to the Commission’s DGXV department the introduction of this procedure will enable: • Dialogue with selected suppliers to identify and define solutions to meet the needs of the procuring body, and • Awards to be made only on the basis of the most economically advantageous basis. In addition: • All candidates and tenderers must be treated equally and commercial confidentiality must be maintained unless the candidate agrees that information may be passed onto others • Dialogue may be conducted in successive stages. Those unable to meet the need or provide value for money, as measured against the published award criteria, may drop out or be dropped, although this must be conveyed to all tenderers at the outset