Decide how to approach your market or provider community - open competitive processes, closed competitive sourcing, direct sourcing or competitive dialogue.
The option you select to approach the market or provider community will differ depending on the:
This will affect the format of your requirements.
You'll use a request for proposals when:
You'll use a tender when:
An open approach means the opportunity is advertised openly on GETS (the Government Electronic Tender Service) and any supplier or provider can submit a proposal.
Open competitive processes are preferred as they:
An open competitive process can be run as a single stage process or a multi-stage process.
A multi-stage open process is helpful when the market is complex and you are looking to procure high-risk, high-value or unique goods and services.
Use an open process when:
When using a competitive process:
Competitive dialogue is the name for a competitive process created in the European Union to allow more flexibility when dealing with complex or unusual procurements.
Competitive dialogue allows:
Use competitive dialogue when:
In a closed competitive process, you invite a limited number of suppliers to respond to an opportunity directly, often through an RFP.
This is different to a direct procurement because those invited to respond are competing against each other.
Use a closed process if:
You can use GETS to issue closed contract opportunities to a selected group of suppliers. Using GETS:
Direct sourcing involves approaching suppliers directly. Direct sourcing includes:
Buying directly from any suitable supplier is typically only used for very low value, low risk purchases. When buying from a panel there may be a secondary process you need to follow as part of the panel participation agreement.
The selected supplier or group of suppliers may be asked to submit a proposal or they may be invited directly into negotiations.
You can direct source when:
If you direct source, you must still meet the Principles of Procurement.
You might use direct sourcing when: