Competitive Flexible Procedure

The Procurement Act 2023 reduced the number of prescribed procurement procedures and replaced many of the old EU-derived routes with a simpler two-procedure framework. For buyers who need more than the basic open procedure can offer, the Competitive Flexible Procedure (CFP) is the single flexible route for complex, innovative, or high-value procurements.

What is the Competitive Flexible Procedure?

The Competitive Flexible Procedure allows a contracting authority to design its own competition structure, subject to certain core requirements. Unlike the old EU-derived restricted procedure, competitive dialogue, or competitive procedure with negotiation (each of which had prescribed steps under the 2015 Regulations), the CFP merges these into one procedure that the buyer configures to suit the complexity and nature of the contract.

A buyer running a CFP must publish a tender notice describing the procedure it intends to follow, including the stages, the criteria for shortlisting, the award criteria and their weightings, and the basis on which it may negotiate or hold dialogue with suppliers. Once published, the buyer must follow the procedure it has described. It may include: an initial selection stage to produce a shortlist, one or more rounds of dialogue with shortlisted suppliers to refine requirements, submission of initial and revised tenders, negotiation on price and terms, and a final tender evaluation against the published criteria.

The CFP is appropriate for complex services, major works, innovative solutions, defence contracts, or any situation where the buyer cannot fully define requirements upfront or where dialogue with the market would improve the solution.

Why it matters for bidders

The CFP changes the bidding dynamic significantly compared to a simple open procedure. Suppliers invited into a dialogue or negotiation stage have the opportunity to shape the final specification, demonstrate thought leadership, and build a relationship with the buyer before submitting a final tender. This rewards suppliers who invest in understanding the buyer's underlying problem rather than simply completing a questionnaire.

However, the CFP also requires more resource: multiple tender submissions, attendance at dialogue sessions, and iterative refinement of proposals all add to bid costs. Suppliers must assess whether the opportunity justifies that investment. Reading the initial tender notice carefully to understand the planned procedure stages is essential before committing to participate.

Example

A government agency needs a new digital case management system. Requirements are not yet fully defined and the agency wants market input on the technical architecture. It runs a Competitive Flexible Procedure: an initial selection stage narrows the field to five suppliers, two rounds of technical dialogue refine the specification, suppliers submit outline proposals, the agency negotiates commercial terms with the top two, and final tenders are evaluated on a 60% quality / 40% price basis. The competitive award is then made to the highest-scoring final tender.

Frequently Asked Questions

Is the Competitive Flexible Procedure the same as competitive dialogue?

The CFP can be designed to work like competitive dialogue, but it is broader. The old competitive dialogue procedure was a specific set of prescribed steps. The CFP gives buyers freedom to design whatever combination of selection, dialogue, negotiation, and tendering stages best suits the contract, provided the approach is described in the tender notice and followed consistently.

Can a buyer change the procedure after publishing the tender notice?

Only within the limits described in the published notice. Material changes to the procedure that disadvantage suppliers who have already committed resources to the process are not permitted and would risk a legal challenge. Buyers who realise their published procedure is unworkable should issue a procurement termination notice and re-run the competition.

Is the Competitive Flexible Procedure available for all contract types?

It is available for goods, services, and works contracts above the relevant threshold. Some contract categories, such as certain light-touch regime services, have their own rules. The CFP is not available for below-threshold contracts, though buyers may voluntarily create a similar multi-stage process.