Dialogue Phase

The dialogue phase is the core of the competitive dialogue procedure. It is the period during which the contracting authority engages in confidential, structured discussions with each shortlisted candidate separately, with the goal of developing one or more solutions capable of meeting the buyer's needs. Unlike the negotiation phase in competitive procedure with negotiation, the dialogue phase is not about refining offers against a fixed specification: it is about developing the specification itself.

What is the Dialogue Phase?

Article 30(4) of Directive 2014/24/EU establishes that contracting authorities may discuss all aspects of the contract with the candidates during the dialogue phase. The authority conducts bilateral discussions with each candidate separately. These discussions are confidential: candidates' proposed solutions, pricing approaches, technical ideas, and other commercially sensitive information disclosed during dialogue must not be shared with competing candidates without the candidate's consent.

The dialogue continues until the contracting authority has identified one or more solutions capable of meeting its needs. The authority declares the dialogue complete and invites all remaining candidates to submit final tenders based on the solution or solutions developed.

During the dialogue phase, the following types of discussion are common: technical architecture and delivery approach, legal and contractual structure (particularly for PPP and concession arrangements), financial model and risk allocation, performance metrics and measurement frameworks, and transition or implementation planning. There is no prescribed format for dialogue sessions; they may be meetings, written exchanges, or both.

The authority may progressively reduce the number of candidates during the dialogue phase by applying the award criteria to successive rounds, provided this was stated in the contract notice or descriptive document. This narrows the field before final tenders are invited.

Why it matters for bidders

The dialogue phase is uniquely valuable for suppliers with genuinely innovative or differentiated solutions. Because the specification is being developed during the dialogue, a candidate who articulates a compelling solution concept can influence the final requirement in ways that align with their strengths. This is sometimes called "shaping the specification."

However, the process is resource-intensive. Preparing for, attending, and following up from multiple rounds of dialogue over many months requires dedicated teams, significant executive time, and sustained investment in proposal development. Candidates who under-resource the dialogue phase tend to produce weaker final tenders.

Confidentiality protection is real but limited: you must disclose enough of your solution to make the dialogue productive, but you should be thoughtful about disclosing core intellectual property that you cannot afford to have replicated.

Example

A Belgian regional government runs competitive dialogue for a 25-year concession to design, build, finance, and operate a new wastewater treatment facility. The dialogue phase runs for eleven months with three shortlisted candidates. The authority conducts eight bilateral sessions per candidate, covering technical design options, financing structures, risk allocation frameworks, and environmental performance standards. After round seven, one candidate is eliminated after applying the award criteria. The remaining two submit final tenders based on the agreed solution parameters.

Frequently Asked Questions

How is the dialogue phase different from the negotiation phase?

In the negotiation phase of competitive procedure with negotiation, the minimum specification is already fixed before negotiations begin. The negotiation phase refines offers against that specification. The dialogue phase in competitive dialogue has no fixed specification at the outset: the dialogue itself creates the specification. The dialogue phase is therefore broader and less constrained.

Must all candidates receive the same information during the dialogue phase?

The authority must not share one candidate's proposed solution with another without consent. However, general information about the buyer's needs, priorities, and constraints that is relevant to all candidates must be provided equally. Selective information provision that gives one candidate an advantage is prohibited.

Can a contracting authority terminate the dialogue with one candidate before others?

Yes, if it has stated this possibility in the contract notice and has applied the award criteria to reduce the field. The authority must inform candidates of their elimination in writing with reasons.

How long does the dialogue phase typically last?

There is no prescribed minimum or maximum duration. For large infrastructure or PPP contracts, dialogue phases of twelve to thirty-six months are not unusual. For complex IT or services contracts, six to eighteen months is more typical. The authority declares the dialogue complete when it is satisfied that solutions have been identified.