The Competitive Dialogue Procedure has only been around for three years now, but HM Treasury have recently launched a review of the procedure and, in many people's view, the review has been a long time in coming.
Unlike the negotiated, open and restricted procedures, competitive dialogue is aimed at more complex procurements such as PFI/PPP projects and aims to increase the bidders' understanding of requirements, increase openness between the public and private sector and promote competitive tension.
However, competitive dialogue has not been without its problems. Concerns have been raised, for example, over the increased costs for bidders, the unnecessary time delays in reaching preferred bidder stage, and the overall uncertainty on application of the rules. Despite having been used more than 1200 times in three years, the stringent implementation of the competitive dialogue procedure in the UK has been criticised by the partnerships industry in particular, who complain that projects take longer to close, and cost more to bid for than they do in other countries.
HM Treasury's review is aimed at gaining a better understanding of how the process has been working (or not, as the case may be) compared, in particular, to the negotiated procedure.
The Treasury has commissioned PricewaterhouseCoopers to undertake surveys and interviews on competitive dialogue.
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