Competitive Dialogue in Procurement

Dr David Mosey Trowers & 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 Dudman Affinity Sutton Group

Affinity Sutton 55,000 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 Baxter echelon 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 – [email_address] www.trowers.com Nick Dudman - [email_address] www.affinitysutton.com Mathew Baxter – [email_address] www.echelonconsultancy.co.uk

Competitive Dialogue in Procurement

by echelonconsultancy on Jan 23, 2012

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Competitive Dialogue in Procurement — Presentation Transcript