Size and type of contracts let under Competitive Dialogue

2.30  The ERG defines a complex procurement as "one where the specification is difficult to define or is complex or innovative, the procurement is high risk, the competition is restricted to a limited market, the contract will be based on unusual commercial models (e.g. PFI or a PPP variant) or where the procurement involves spend in a number of categories."5

2.31  Our research found 44% of those projects which responded to the survey were for contracts of 5 years or less, rising to 67% for 10 years or less. In terms of cost, 52% of projects had a capital value of £5m or less, 41% with a services value of £5m or less.

2.32  While we would not suggest there is always a direct relationship between project value or duration and complexity, given the length of time and internal resources it takes to prepare for and deliver a Competitive Dialogue procurement, these numbers raised some concerns.

2.33  It was clear from our research that a wide range of obviously complex projects have taken advantage of the flexibility that Competitive Dialogue offers to secure policy outcomes. These include large scale IT projects, hospital and prison PFI projects and urban regeneration partnerships.

2.34  However, we were concerned to note others which were not so obviously complex, for example purchasing annual insurance policies, occupational clothing, and detergents, printing a local government newsletter and obtaining cleaning services for a single school.




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5  http://www.ogc.gov.uk/procurement_documents_complex_procurement_.asp