1. Open
In this single-stage process, any interested supplier submits one fully priced proposal. The tender is assessed based on predetermined criteria, and the highest scoring bidder is awarded the contract according to the specified award criteria. Additionally, there’s an open accelerated procedure available for urgent situations, which follows the same process but with shorter timeframes.
2. Restricted
It’s a two-stage procedure that begins with creating a shortlist of the most suitable suppliers by having them complete a selection questionnaire initially. The full tender process occurs during the Invitation to Tender (ITT) stage, where companies are evaluated based on predetermined criteria. The contract is awarded to the bidder with the highest score. Similar to the open procedure, there’s also an accelerated restricted procedure available.
This approach is typically employed when a large number of bidders are anticipated, and in England, the use of the restricted procedure must be justified to the Cabinet Office.
3. Competitive Dialogue
This method is employed for intricate procurements, particularly in cases where the authority struggles to define the technical aspects or the legal/financial structure of the requirement. It’s also a two-stage process.
Shortlisted suppliers, who have successfully pre-qualified, engage in a dialogue with the authority to develop appropriate solutions. Following this, the suppliers are invited to submit their bids.
4. Competitive Procedure with Negotiation
This is a multi-stage procedure that permits negotiation with suppliers after they’ve submitted their bids. The contracting authority must specify the minimum requirements for tenders to participate upfront, and no deviations from these minimum requirements will be entertained.
Contracting authorities are obliged to negotiate all tenders to enhance their content, except for final tenders, unless they’ve explicitly reserved the right not to do so in the prior information notice (PIN) or invitation to tender. Additionally, they are prohibited from altering the award criteria and recitals once the competition is in progress.
5. Negotiated Procedure Without Prior Publication
This procedure is reserved for extraordinary circumstances and involves contracting authorities directly engaging one or more suppliers to negotiate a contract. Approval for using this procedure can be granted if any of the following situations arise:
No bids, suitable bids, requests to participate, or suitable requests to participate have been received following an open or restricted procedure.
The requirements can only be fulfilled by a specific supplier due to factors such as the purchase or creation of art, lack of other competitors/alternatives, or the need to safeguard exclusivity rights.
Unforeseeable events have arisen, creating a procurement need that must be urgently addressed.
6. Innovation Partnership
This procedure is unique and is utilized when there are no existing goods, services, or works available to fulfill the procurement need. Contracting authorities can choose partners through a competitive process by asking them to develop an innovative solution tailored to their specific requirements. The competitive phase of the tender occurs upfront, and once selected, tenderers collaborate with the contracting authority to develop a new solution as needed.
The research and development phase can be segmented into several stages, during which the number of partners may gradually decrease based on whether they meet predefined criteria. The partner(s) who remain will then deliver the solution for the contracting authority.
Other Procurement Tools
Framework Agreement
A framework can be established using any of the aforementioned procedures, but the outcome is an overarching agreement involving all successful suppliers. This agreement delineates the terms, particularly concerning price, quality, and quantity, under which individual contracts (known as call-offs) can be awarded at any point throughout the framework’s duration. Frameworks are commonly utilized when the buyer has identified a need for specific products or services but is uncertain about the scope or timeframe.
These agreements grant buyers access to a pool of qualified suppliers, eliminating the need for frequent re-tendering. However, being part of a framework doesn’t guarantee work, as multiple suppliers may offer the same goods, works, or services. In such cases, mini-competitions or assessments of best value determine the winner of the contract.
Frameworks typically endure for five years, during which no additional suppliers can be added to the agreement.
Dynamic Purchasing System (DPS)
A DPS, or Dynamic Purchasing System, functions similarly to a framework but with some key differences. New suppliers can join a DPS at any time, and it’s typically used for goods, works, and services that are readily available on the market. Setting up a DPS requires the restricted procedure, and the entire process must be conducted electronically. Unlike a framework, there’s no limit on the number of suppliers that can join a DPS, and any supplier can join during the tender’s lifespan. DPSs are utilized to streamline procurement for both buyers and suppliers, as suppliers only need to demonstrate suitability once. This allows buyers to award contracts more quickly compared to other procurement methods.
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