Myths about dialogue in public procurement

The water industry together with Svenskt Vatten is working towards increased dialogue between the parties ahead of a procurement. The campaign Myths about dialogue in public procurement is based on material from The procurement authority about five common myths.

The Swedish Procurement Authority has identified five common myths about dialogue in connection with purchasing and procurement. The aim is to increase dialogue between contracting authorities and suppliers.

Preparation is key
to a successful project.

Myth 1. I shouldn't talk to suppliers if I'm about to start a procurement.

You can and should talk to suppliers, especially before a procurement. Dialogue is an excellent method for the authority to gain better knowledge of what is to be procured, of those who deliver the goods/services and of the conditions in the current market. It is part of the preparatory work that should be done before all procurements and forms the basis for well-functioning cooperation during the contract period. It also reduces the risk of misunderstandings, which often leads to more qualified and better tenders. Remember to conduct the dialogue in an open and equal manner by providing the same information to all suppliers. Also, don't forget to document what you do.

Myth 2. I have to invite all suppliers in Sweden/Europe if I organize a meeting.

If the purpose of the dialogue is for the authority to obtain information, it is appropriate to invite as broadly as possible in order to obtain the best possible basis. However, there is no rule that states that all potential suppliers must be invited. The authority must acquire sufficient knowledge of the market to be able to independently design a request for proposal, and none of the participating suppliers should be able to influence the design to their own advantage. It therefore does not mean that the principle of equal treatment has been violated if you have not invited all suppliers. Conduct a proper survey of the market and clearly justify why you choose to speak to only a selection.

Myth 3. I am not allowed to speak privately with a supplier.

Depending on the purpose of the individual meeting and the nature of the market, this may be both permissible and necessary. If the dialogue requires companies to provide information that could pose a competitive disadvantage if it were to become public knowledge, one-on-one meetings may be the only way for the authority to get answers to its questions. However, if you plan to invite one-on-one meetings, it is important that you have thought through the purpose and that there is a pre-set agenda that is strictly followed at all meetings. This is important for both the contracting authority and the supplier. Conduct meetings as exploratory interviews and be restrictive in sharing information about requirements, procedures and the like with the suppliers. It is also a good idea to keep minutes of what is discussed during the meeting.

Myth 4. I am not allowed to say when a procurement will be advertised.

On the contrary. If a supplier asks when a procurement will be carried out, it is fine to inform about the planned date, provided that you give the same answer to everyone who asks. This does not give any supplier an unfair competitive advantage but is a good way to create interest in the procurement. This increases the chances of receiving more bids and the possibilities of making a good deal become greater. Some contracting actors also choose to advertise their upcoming procurements in advance or to post information about upcoming procurements on their websites, which is a good way to keep the market informed about their plans.

Myth 5. I shouldn't burden suppliers with dialogue before a procurement – they have too much to do to answer questions.

In the vast majority of cases, this is not true at all. The vast majority of suppliers want increased dialogue and show great interest in communication and exchange of experiences with the public sector. For smaller companies with only a few employees, however, it can sometimes be difficult to free up resources to conduct dialogue, while at the same time they may have very valuable information. It may therefore be worth the effort to adapt the dialogue in such a way as to, for example, the scope and times of meetings, that even smaller companies have the opportunity to participate.

Dialogue & collaboration
gives you bang for your buck

Within the Water Industry, dialogue and collaboration are emphasized as crucial factors in increasing the project implementation rate. The Project Implementation & Procurement focus group within the Water Industry works with the long-term goal of improving business processes. By ensuring knowledge of and use of the right procurement method and agreement, unnecessary costs for the parties can be reduced.

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