Competitive Dialogue (CD) - Driving innovative solutions

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COMPETITIVE DIALOGUE: DRIVING INNOVATIVE SOLUTIONS

BY PETER DEGRAAFF, SENIOR ADVISOR

Competitive dialogue (CD) is one form of interactive tendering to drive a solution that best meets the needs of the purchaser and respondents. It is a collaborative process which facilitates open interaction and dialogue with respondents prior to the submission of proposals.

It allows proposed solutions to evolve and different technical approaches to be considered, to achieve a tailored, innovative solution, including co-design and de-risking proposals. Compared to a conventional tendering process, where there is less proactive engagement with industry in solution definition, CD provides opportunities for innovation and continuous business improvement.

For example, technical and pricing assumptions in proposals can be tested in CD, allowing shortlisted respondents to de-risk proposals whilst allowing both the purchaser

and respondents to define better the client requirements through co-design whilst maintaining competition and remaining within probity guidelines.

Conducted well, CD significantly improves the chances of:

›› Achieving best value for money

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Designing innovative technical solutions

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Reducing technical and pricing risk

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More effectively meeting the needs of both parties

Key benefits of CD include:››

Providing respondents the opportunity to explore and reduce areas of uncertainty and risk in the purchaser’s requirements (that is, technical, schedule, cost or commercial)

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Providing participating respondents with the opportunity to update and improve the potential value for money of their responses following feedback

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Allowing the purchaser to understand proposed responses better, and to seek clarification and additional detail without the constraints that apply in conventional tendering processes

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Maintaining strong competition while obtaining the flexibility described above

When should CD be employed?

The CD process is flexible and suitable where the purchaser seeks to discuss aspects of proposed solutions with prospective respondents before submission of proposals. Usually for complex procurement processes - CD is employed where the purchaser:

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Is unsure about current technologies and industry advances in the area of interest

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Cannot define the technical, financial, legal or other requirements fully and clearly at the commencement of the procurement

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Is seeking innovative approaches to meet its requirements, including alternative approaches to its existing approach

Proximity can help you achieve good procurement results through effective management of your procurement process, including an integrated CD process. This can include:

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Developing a procurement strategy, including an integrated CD process

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Approach to market documentation

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CD documentation, advice and support

Contact us on 1800 959 885 or enquiries@proximity.com.au

THE PULSE ISSUE TWO