Procurement Procedures

Competitive Dialogue

Competitive dialogue is a procurement procedure designed for particularly complex contracts where the contracting authority cannot define the technical solution, legal structure, or financial arrangement in advance. It involves a structured dialogue phase with pre-qualified candidates before final tenders are submitted.

Definition

Competitive dialogue is a multi-phase procurement procedure used for complex contracts. After publishing a contract notice, the contracting authority selects qualified candidates and enters into a dialogue to identify the best solutions. The dialogue continues until the authority can define the solution(s) that meet its needs. Candidates then submit final tenders based on the solutions developed during the dialogue phase. It is regulated by Section 36 of the Public Procurement Act (1397/2016).

Legal Reference

Public Procurement Act (1397/2016), Section 36

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Practical Example

A city plans to build a new public transport hub combining rail, bus, and cycling infrastructure with commercial spaces. Since the optimal technical and financial solution is unclear, competitive dialogue is used. Three consortia participate in a six-month dialogue phase before submitting final tenders.

Common Mistake

Suppliers sometimes share their proprietary solutions too freely during the dialogue phase. Each participant's solutions are confidential, and the contracting authority may not disclose one participant's proposals to another without consent.

Frequently Asked Questions

How does competitive dialogue differ from the negotiated procedure?

In competitive dialogue, the authority has not yet identified the solution and develops it through dialogue with candidates. In the negotiated procedure, the authority has a clearer idea of the solution and negotiates terms based on initial tenders. Competitive dialogue is typically used for more complex procurements.

Can the contracting authority pay participants for their contributions during dialogue?

Yes, the contracting authority may provide prizes or payments to participants in the dialogue phase. This is encouraged especially when significant effort is required from participants to develop solutions.

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