Procurement Glossary
Competitive dialogue: definition, application, and advantages in Procurement
November 19, 2025
Competitive dialogue is an innovative procurement procedure used for complex procurement projects when conventional tendering procedures are not sufficient. This procedure enables public contracting authorities to enter into a structured dialogue with several bidders in order to develop tailor-made solutions. Find out below what competitive dialogue is, how it is carried out, and what advantages it offers for complex procurement projects.
Key Facts
- Procurement procedures for particularly complex procurement projects with a high need for innovation
- Enables structured dialogue between the contracting authority and several qualified bidders
- Two-phase process: dialogue phase for solution development, followed by submission of bids
- Legally enshrined in German public procurement law and EU public procurement directives
- Particularly suitable for IT projects, infrastructure projects, and innovative technology solutions
Contents
Definition: Competitive dialogue
Competitive dialogue is a special procurement procedure that is used for particularly complex procurement projects.
Basic concept and delimitation
In competitive dialogue, the contracting authority conducts structured discussions with several prequalified bidders in order to jointly develop optimal solutions. Unlike in open or restricted procedures, the focus here is on dialogue and joint solution finding.
- Interactive exchange between client and bidders
- Development of customized solutions during the process
- Flexibility in adapting requirements
Legal basis and conditions of application
The procedure is only permissible under certain conditions and requires a careful tendering strategy. The complexity of the procurement object must be such that it is not possible to provide a precise description of the services in advance.
Importance in modern Procurement
Competitive dialogue is becoming increasingly important, as modern procurement projects often require innovative and complex solutions. It enables technological developments and market innovations to be exploited to the full.
Methods and procedures for competitive dialogues
Competitive dialogue is conducted according to a structured process with clearly defined phases and methods.
Preparation phase and participant selection
Careful preparation forms the foundation for successful dialogue. First, suitable dialogue partners are selected based on suitability criteria.
- Definition of minimum requirements and evaluation criteria
- Preparation of a detailed award schedule
- Defining the dialogue structure and rules
Dialogue phase and solution development
During the actual dialogue phase, structured discussions take place with the selected bidders. This phase may involve several rounds of negotiations until satisfactory solutions have been developed.
Final phase and bid evaluation
Once the dialogue phase has been completed, bidders are invited to submit their final bids. The evaluation is based on the award criteria specified in advance and a structured evaluation matrix.
Tacto Intelligence
Combines deep procurement knowledge with the most powerful AI agents for strong Procurement.
Key KPIs for competitive dialogues
Measuring the success of competitive dialogues requires specific key performance indicators that evaluate both process and outcome quality.
Process efficiency key figures
These metrics evaluate the efficiency of dialogue implementation and help with the continuous improvement of the process.
- Average dialogue duration per phase and bidder
- Number of rounds of dialogue until a solution is found
- Ratio of effort to degree of innovation achieved
- Participation rate of qualified bidders
Quality and innovation indicators
These KPIs measure the quality of the solutions developed and the degree of innovation of the results. A structured scoring model supports objective evaluation.
Profitability and compliance metrics
The assessment of economic success and regulatory compliance is crucial for justifying the costly procedure. Regular audits of the award documents ensure compliance.
Risk factors and controls in competitive dialogues
Despite its advantages, competitive dialogue carries specific risks that must be minimized through appropriate control mechanisms.
Procedural risks
The complexity of the procedure increases the risk of procedural errors and legal challenges. Careful documentation of all dialogue steps in the award file is essential.
- Unacceptable preferential treatment of individual bidders during the dialogue
- Incomplete or incorrect procedural documentation
- Breach of confidentiality between dialogue partners
Time and cost risks
The intensive dialogue process can lead to significant delays and cost increases. A realistic award schedule and continuous project management are therefore essential.
Quality and outcome risks
There is a risk of suboptimal solutions if the dialogue is not conducted in a structured manner. Clear evaluation criteria and regular interim evaluations help to ensure the quality of the solution.
.avif)
Practical example
A municipal utility company is planning to modernize its IT infrastructure and requires an innovative cloud solution with specific security requirements. Since no standard solution is available, a competitive dialogue is conducted. Three IT service providers are invited to participate in the dialogue after pre-qualification. In four rounds of dialogue, they work with the client to develop customized solution concepts that take into account both technical innovation and cost-effectiveness.
- Dialogue phase: 8 weeks of structured discussions
- Result: Three innovative, different approaches
- Surcharge: Best solution with 15% cost savings compared to standard approach
Current developments and effects
Competitive dialogue is constantly evolving and is shaped by new technologies and changing market requirements.
Digitalization and AI integration
Modern technologies are revolutionizing the way competitive dialogues are conducted. Electronic tendering platforms enable more efficient communication and documentation.
- AI-supported analysis of dialogue content and proposed solutions
- Automated evaluation and comparison of complex offers
- Improved transparency through digital documentation
Sustainability and ESG focus
Sustainability is increasingly becoming a key issue in competitive dialogues. Clients are systematically integrating ESG criteria into their evaluation models and promoting innovative, sustainable solutions.
International harmonization
Procedures are increasingly being harmonized internationally, which facilitates cross-border procurement projects. Standardized processes and uniform evaluation methods are becoming increasingly important for complex, international projects.
Conclusion
Competitive dialogue is a valuable tool for complex procurement projects, enabling innovation and tailor-made solutions. Despite higher procedural costs and complexity, when used correctly it offers considerable advantages in terms of better solution quality and market innovation. Careful preparation, structured implementation, and continuous documentation are crucial for success. Modern technologies and digital platforms will make the process even more efficient and transparent in the future.
FAQ
When is competitive dialogue permissible?
Competitive dialogue is only permitted for particularly complex procurement projects where the contracting authority is objectively unable to define the technical means to satisfy its needs or to determine the legal or financial terms of a project.
How does dialogue differ from negotiation?
While the negotiated procedure involves negotiating existing bids, competitive dialogue allows the contracting authority and bidders to jointly develop new solutions. Dialogue is more interactive and solution-oriented than pure negotiations.
What are the costs of the procedure?
Competitive dialogue is more complex than standard procedures. Additional costs arise due to longer procedure times, intensive support for dialogue partners, and more extensive documentation. These additional costs are often offset by better solution quality and innovation.
How is confidentiality ensured?
The client is obliged to treat information provided by dialogue partners as confidential and not to pass it on to other bidders. Separate discussions and strict information isolation between bidders are essential for a legally compliant procedure.
.png)
.png)
.png)
