Professional Services

EU Procurement Reform: Procedures, Negotiation and Direct Awards

How changes to procedures could affect competition, supplier participation and procurement strategy.

In this briefing
  1. Introduction
  2. Negotiation Under the Existing and Proposed EU Rules
  3. Proposed Changes to the Open Procedure
  4. Dynamic Procurement: Proposed EU Rules and the UK Approach
  5. The Proposed Five-Phase Innovation Procurement Procedure
  6. Direct Awards Without Competition: Permitted Circumstances
  7. About the Author
  8. References
  9. Disclaimer

Introduction

Directive 2014/24/EU gives a public buyer five named procedures to choose from — open, restricted, competitive dialogue, competitive procedure with negotiation, and innovation partnership — plus a sixth, exceptional route: the negotiated procedure without prior publication, reserved for tightly defined cases1. The Commission's proposal collapses the first five into three: an open procedure that can include negotiation on its own terms, a dynamic procedure, and an innovation procedure — plus the same kind of exceptional route for tightly limited circumstances2. Four ways to buy, not six. Parts 1 and 2 of this series covered the structural shift and the exclusion regime. This part covers the mechanics a buyer and a bidder actually live inside once a tender opens.

Negotiation Under the Existing and Proposed EU Rules

Today, negotiation is not something a buyer can simply choose. Competitive dialogue and the competitive procedure with negotiation are only available where specific conditions are met — where the buyer's needs cannot be satisfied by adapting an off-the-shelf solution, where the contract requires design work or innovative solutions, where prior negotiation is required by the complexity or legal and financial structure of the contract, or where an open or restricted procedure has already produced only irregular or unacceptable tenders3. A buyer reaching for either procedure has to justify that choice against those triggers and record the justification. Get the justification wrong and the choice of procedure itself becomes a ground for challenge.

The restricted procedure sits alongside those two as the current default for anything more complex than a straightforward open tender:…

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This briefing reflects the author's analysis and understanding of the market, based on professional experience and information available at the time of publication. It is provided for information and discussion and is not legal, financial, investment or other professional advice. Full disclaimer.

About the author

Ajay Channana is a senior procurement and commercial practitioner with more than two decades of senior commercial leadership experience across public and private sector organisations. He established Ipso Facto Consulting Limited in 2016.

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