Competitive flexible procedure
The competitive flexible procedure lets a UK buyer design its own above-threshold process, with negotiation, dialogue or demonstrations. Rules, stages and advice for SMEs.
Updated on September 5, 2026
The competitive flexible procedure is the route by which a UK public buyer designs its own above-threshold competition, including negotiation with the shortlisted suppliers before award. It is the alternative to the open procedure, in which everyone tenders once and nothing can be negotiated.
How it works
Section 20 of the Procurement Act 2023 (verified 2026-09-05) gives buyers in England, Wales and Northern Ireland exactly two competitive routes: the open procedure and the competitive flexible procedure. The second replaced the old restricted procedure, competitive procedure with negotiation, competitive dialogue and innovation partnership, and it is not limited to defined grounds. A buyer may use it whenever it judges the process appropriate for the contract, provided the design is proportionate and is described in the tender notice and associated documents.
It applies to contracts at or above the thresholds in force since 1 January 2026: £135,018 for goods and services bought by a central government authority, £207,720 for a sub-central authority, £415,440 for a utility and £5,193,000 for works, all inclusive of VAT.
In practice the procedure resembles a shortlisted competition: a tender notice, conditions of participation and a selection stage, initial tenders, then one or more rounds of negotiation, dialogue, presentations or trials, with the field reduced between rounds where that was announced. Award criteria may be refined between rounds only within the limits published in advance, and the buyer's minimum requirements cannot be negotiated away. Final tenders are then scored against the published criteria. In Ireland, buyers still use the restricted procedure, the competitive procedure with negotiation and competitive dialogue, each available only on the grounds set out in the 2016 regulations.
What it means for a bidder
Negotiation changes how you build an offer. Your first tender must be strong yet leave room to move: it will be discussed point by point, on price, programme and technical detail. Know which elements are firm and which can flex, and document your costs so you can justify each position.
For an SME this is also the chance to put forward a solution different from the one the buyer imagined, which an open procedure does not allow. Prepare negotiation sessions with the same care as your quality response: exchanges are recorded, and equal treatment obliges the buyer to give the same information to everyone.
Read the process description in the tender notice closely. Because each buyer designs its own procedure, the number of stages, the shortlist size and the rules on what may change vary from one competition to the next.
Example
A fictional English NHS trust wants a logistics management system interfaced with its existing tools, estimated at £1,500,000. Nothing on the market meets the need without adaptation, so it runs a competitive flexible procedure, shortlists four suppliers, holds two negotiation rounds and awards to a thirty-person software house that adjusted both its architecture and its price.
Frequently asked questions
Who decides that a contract needs this procedure?
The buyer, on its own responsibility. Unlike the old rules, it does not have to fit defined grounds, but the process it designs must be proportionate and clearly described.
Is everything negotiable?
No. The buyer's stated minimum requirements and the published award criteria stay fixed. Price, timescales and technical arrangements can move.
How does it differ from competitive dialogue?
Competitive dialogue, still a separate procedure in Ireland, explores possible solutions before tenders exist. Under the Act, dialogue is simply one of the stages a buyer can build into the flexible procedure.