Definition
Competitive Dialogue
A procedure allowing structured discussion before final tenders.
Competitive dialogue was a procedure under the Public Contracts Regulations 2015 for complex contracts where the buyer could not define a solution upfront, allowing structured discussion with shortlisted bidders before final tenders. Under the Procurement Act 2023 it has been absorbed into the single competitive flexible procedure rather than existing as a separate named route.
How dialogue worked under PCR 2015
After a selection stage, shortlisted suppliers entered a dialogue phase with the buyer, exploring and refining possible solutions to a stated need — for example a complex IT system, a major infrastructure scheme, or a service redesign where the exact specification was not yet fixed. Dialogue could run across multiple rounds, sometimes narrowing the field of participants as it progressed.
Once the buyer was satisfied a solution or solutions had been sufficiently developed, dialogue closed and remaining suppliers submitted final tenders based on the solution(s) discussed, which were then evaluated against published award criteria.
- Used for legally or technically complex requirements where the buyer could not define the solution in advance
- Ran under regulation 30 of the Public Contracts Regulations 2015
- Multiple dialogue rounds possible, often with a reducing number of participants
- Concluded with final tenders based on developed solutions
Its status under the Procurement Act 2023
New procurements run under the Procurement Act 2023 from February 2025 do not use competitive dialogue as a distinct named procedure. Instead, a buyer wanting a dialogue-style process uses the competitive flexible procedure and designs a dialogue phase into it.
Some live or transitional procurements started under PCR 2015 may still be completing a competitive dialogue process, so the term will remain relevant to suppliers bidding into those legacy competitions for some time.
Frequently asked questions
- Can buyers still run competitive dialogue after the Procurement Act 2023?
- Not as a separately named procedure for new procurements. From February 2025, buyers wanting a dialogue-style process must use the competitive flexible procedure, which they can design to include one or more dialogue rounds, achieving a similar effect without following the old fixed regulation 30 format.
- What is the difference between competitive dialogue and negotiation?
- Dialogue involves developing and discussing potential solutions with bidders before final tenders are invited, and was typically used for complex, ill-defined requirements. Negotiated procedures involved discussing and refining actual tenders already submitted. Both are now folded into the Procurement Act 2023's flexible procedure.
- Why would a buyer have chosen competitive dialogue over the restricted procedure?
- Competitive dialogue suited requirements too complex or novel for the buyer to specify fully in advance, such as major infrastructure or bespoke IT systems. The restricted procedure assumes the buyer already knows what it wants to buy and simply shortlists then invites tenders against a fixed specification.
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