3.10 HM Treasury was keen to explore the reality behind the perception that Competitive Dialogue is stifling competition by excluding all but the largest and most experienced private sector providers.
3.11 Roundtable discussions with bidders and advisers to both the public and private sectors suggested that the perception of high bid costs, lengthy time-frames and convoluted processes, does seem to be discouraging some bidders, particularly small to medium sized companies.
3.12 While not specific to Competitive Dialogue, contracting authorities should refer to the ERG guidance on Small and Medium sized Enterprises when preparing for procurement to try and combat unintentional barriers to entry and to ensure fair competition.2
3.13 To inform new entrants, and to address some of the more common impressions about what can be expected during a Competitive Dialogue procurement, a short 'Suppliers' Guide to the Competitive Dialogue Process' should be developed. Such a publication could outline how bidders can get the best out of a Competitive Dialogue procurement as well as the information and behaviours they are entitled to expect from the contracting authority.
3.14 Larger, more experienced companies are also pausing for thought before bidding on Competitive Dialogue procurement, regardless of how substantial the end contract may be. Bidders are increasingly likely to undertake extensive due diligence on the contracting authority to understand the resources being devoted to the process, the experience and expertise of the procurement team and depth of preparation undertaken by the contracting authority and may forgo the opportunity where inexperience and/or lack of preparation is evident. This increases the responsibility on the contracting authority to prepare properly for bids so as to ensure high levels of competition.
3.15 As part of their pursuit of the best value for money solution, contracting authorities should be cognisant of the private sector's 'auditioning' process. They should use Bidders' Days OJEU Prior Information Notices and Contract Notices to showcase their preparation and demonstrate to all bidders their capacity, capability and commitment to delivering an efficient, time conscious procurement process.
3.16 And while there may be some contention over establishing competition, once the procurement process is underway both sides are in agreement that the process is capable of maintaining sufficient competition. Over 90% of public sector respondents felt their procurements maintained competitive tension throughout the process. When the private sector respondents were asked the comparable question, the percentage remained above 90%.
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2 OGC, Small Supplier, Big Opportunity, 2010. http://www.ogc.gov.uk/documents/Contract_Flagging.pdf