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