What are the Types of Tendering Procedures?

Discover the various types of tendering procedures, their role in European public procurement and strategies to optimize your responses.
7 minutes read

Table of contents
  • Open tendering procedures
  • Restricted tendering procedures
  • Competitive procedures with negotiation
  • Competitive dialogues
  • Innovation partnerships
  • Conclusion

What are the Types of Tendering Procedures?

Open tendering procedures

This is the type of procedure most commonly used among those provided for in European public procurement law. It is defined in Article 27 of Directive 2014/24/EU and is characterised by its total openness to competition: any interested economic operator may submit an offer without a pre-selection phase. In order to do so, the contracting authority shall publish a contract notice to which applicants will be able to submit a tender within the time limit set.

Simplicity and transparency are the two main words of this type of procedure, since it consists of only one stage, namely the submission of tenders followed by their evaluation. In order to ensure transparency, the award criteria must be clearly indicated as soon as the publication takes place. These criteria may include price, quality, or elements related to sustainable development and innovation.The directive also covers the deadlines for this type of tender.The minimum time limit for submitting a tender is in principle 35 days from the publication of the notice. However, it may be reduced to 15 days in certain situations (e.g. in case of prior publication of a duly justified notice of information or urgency).

What are the Types of Tendering Procedures?What are the Types of Tendering Procedures?

Restricted tendering procedures

Article 28 of Directive 2014/24/EU lays down the procedures for the restricted procedure, which takes place in two successive stages. The first step is similar to the open call for tenders, except that, in place of the publication of the full call for tenders, the contracting authority publishes a contract notice and invites interested operators to submit their applications.The undertakings concerned must then provide the requested documents (economic, financial and technical capacities) in order to justify their meeting the selection criteria. Once this step has been completed, the contracting authority shall communicate the list of pre-selected candidates, who shall then be invited to submit an offer.

This type of tender retains the open aspect of public procurement while allowing the authority to enter the tendering phase only with the most qualified candidates. The directive also regulates the deadlines to be met, which are at least 30 days for the receipt of applications from the publication of the notice, as well as 30 days for the submission of tenders from the sending of the invitation to the successful candidates (these may again be reduced under certain conditions).

The restricted procedure is preferred by the public body when it wishes to ensure high quality of tenders by limiting final competition to the most suitable undertakings, without hindering the transparency and initial opening of the procedure.

Competitive procedures with negotiation

The competitive procedure with negotiation offers greater flexibility while maintaining openness to competition. It is taken up in Article 29 of Directive 2014/24/EU. For contracts with a high degree of complexity, it is sometimes difficult for the contracting authority to define precise technical specifications in advance, as would be necessary in an open procedure. This may also be the case where innovative solutions are required. In these particular cases, a competitive procedure with negotiation may be useful.

This type of public procurement begins with the publication of a contract notice, followed by the submission of applications from interested operators. The public authority concerned will then select a limited number of candidates who will be invited to submit a first tender. Following this first tender, several rounds of negotiations will follow. The objective of these negotiations will be to discuss, clarify and adapt offers in order to better meet the specific needs of the public buyer. Once these cycles have been completed, the remaining candidates are invited to submit their final offer, which will form the basis for the award of the contract.

This method of operation may prove to be more technical than other types of procedures and requires careful preparation by the applicant companies, who must not only master the European regulatory framework, but also show flexibility and adaptability.

Competitive dialogues

An additional procedure to the competitive procedure with negotiation is specifically designed for particularly complex public procurement: competitive dialogue, defined in Article 30 of Directive 2014/24/EU. This type of tender will be used where the contracting authority is not in a position to define the technical means to meet its needs alone or to establish in advance the legal or financial structure of the project.

The operation of this procedure is very similar to that of the previous one. Collaboration during the negotiation phases will be a little closer. The procedure starts in the same way, with the publication of a contract notice. Next, the interested operators submit their applications, before the buyer selects the candidates he considers most suitable to participate in the dialogue. This dialogue engages with each of them in order to identify and develop the most appropriate solutions to satisfy the expressed need. On the basis of the solutions that have been discussed, the candidates will be able to submit their final offer.

Competitive dialogue has this special feature of being highly collaborative. In-depth exchanges between the buyer and the applicants will be essential to the success of these markets, while promoting innovation and the development of tailor-made projects. However, this mode of operation also imposes constraints on the participating companies, including high adaptability, significant resources and a fine understanding of the expectations of the contracting authority. Despite these requirements, this is a real opportunity for candidate companies, since this competitive dialogue is particularly suited to strategic and large-scale projects, where the search for innovative and adapted solutions takes precedence over standardisation.

Innovation partnerships

In order to meet the requirements of certain complex and specific projects requiring a particular approach, the European Union has defined the Innovation Partnership, which corresponds to Article 31 of Directive 2014/24/EU. This procedure is designed to encourage the research and development of innovative solutions in public procurement. Public bodies which consider that no solution already available on the market can adequately meet their needs can initiate this type of procedure.

The procedure begins with the publication of a contract notice. Secondly, the following phases, which were negotiation phases under the two previous procedures, are more collaborative phases. Interested operators must first apply, and the buyer will select those that demonstrate both their ability to innovate and their ability to deliver the expected results. From this choice arises a partnership between the authority and one or more operators, who will be able to participate in the successive phases necessary for the preparation of the final project: research, development, prototyping, then production and supply of the final solution if it meets the defined requirements.

The innovation partnership is distinguished by its flexibility: it combines financing for the development of new solutions. It also offers the public authority the possibility of directly acquiring the resulting product or service. For companies, the benefit is twofold: on the one hand, it represents a strategic opportunity to co-develop new solutions with the public sector and, on the other hand, it offers them a secure legal framework.

Conclusion

In a landscape as large and complex as that of European public procurement, the control of the various tendering procedures is one of the crucial points that every company must face in order to maximize its chances of success. These tendering procedures are designed to take different forms in order to best adapt to the project in question. Whether they are open, restricted, negotiated, competitive or competitive, each has its own specificities and its distinct benefits. If you wish to take full advantage of all these opportunities, it is essential that you fully understand the regulatory and administrative processes of each procedure. It is thanks to this in-depth understanding that you will be able to respond effectively and accurately to the strict requirements of each market.

In order to secure more contractual opportunities, your company needs to develop and follow a tailor-made strategy for each type of public procurement procedure. To increase your chances, it is recommended to carefully adapt your approach to the characteristics of each tender. Preparing responses that demonstrate strict compliance and clear added value will help you distinguish yourself in the competitive context of public procurement.

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