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Bid Negotiation using the Competitive Dialogue

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1 Bid Negotiation using the Competitive Dialogue
David Locke and Rob Hann 27 September 2007

2 Presentation Outline introduction and context setting
bid evaluation and negotiation techniques 4ps guidance Spending Review 2007

3 about 4ps we are: part of local government centrally funded
local government’s critical friend we have: helped many of the local government PFI and PPP schemes reach close extensive experience of structuring successful schemes we provide: transactor and project advisory support, legal advisory Network groups skills development Gateway reviews we work with: local government service providers central government other organisations

4 competitive dialogue process
March © Public Private Partnerships Programme

5 The Competitive Dialogue Funnel
Pre-Qualification Outline Solutions Detailed Solutions Refined Solutions Competitive Dialogue Evaluation Final Tender Preferred Bidder

6 Competitive Dialogue – Outline Solutions
open competitive dialogue – ITPD to all pre-qualified bidders issue ISOS to seek bidder’s outline solutions initial dialogue with each pre-qualified bidder Outline solutions submitted and preliminary evaluation dialogue on outline solutions finalise evaluation to select short-list for detailed dialogue ‘tweak’ project documentation where necessary

7 Competitive Dialogue – Detailed Solutions
issue ISDS to short-listed bidders (instructions (IGT), output specification, payment mechanism, model contract and schedules) weekly dialogue sessions with each bidder on all key aspects aim should be to provide constructive feedback on solutions ‘free‘ period at end for bid preparation detailed solutions submitted and preliminary evaluation further dialogue on detailed solutions finalise evaluation and determine next steps is there a need for a further stage of competitive dialogue (refined solutions) or are we ready to close dialogue & call for final tenders

8 Bid Evaluation award criteria – set out in OJEU notice and Information Pack should be consistency throughout evaluation stages evaluation should reflect overall aims of the project service delivery and technical method statements or outline proposal for that aspect financial and commercial delivery of the financing proposals and structure legal and contractual deliverability and acceptability of revisions to contractual terms overall price and best value of the solution (Price versus quality) effective dialogue during ISOS and ISDS should facilitate better evaluation

9 Negotiation and Dialogue
how do we maximise benefits of competitive dialogue use dialogue properly… regular meetings with bidders on each aspect of the project pre-planned meetings set out in ITPD/ISOS and IGT requires honesty from both parties, including on affordability requires detailed preparation from both parties have a view on… how you ‘flow’ issues from ISOS to ISDS what is acceptable to leave to preferred bidder acceptable solutions and how evaluation is to be used

10 4ps Guidance on Competitive Dialogue
Procurement packs Corporate and transactional services, fire and police, housing, joint service centres, social care, street lighting, waste management Map papers for PFI and LIFT

11 Opportunities for Local Government PFI
Corporate Property (JSC) £195 million Fire and Police £585 million Housing £1.83 billion Schools £3.9 billion Social Services £405 million Sport and Culture Transport £2.94 billion Waste Management £840 million Total £11 billion Base-line figures only - subject to departmental reallocations

12 Contact Details David Locke Operations Director +44 20 7296 6738
Rob Hann Director, Legal Services Layden House 76-86 Turnmill Street London EC1M 5LG

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