The changes from the Procurement Act 2023 seem to be unending, and the Competitive Flexible Procedure is yet another example of this.

Introduced in February 2025, alongside the rest of the Procurement Act’s legislation, the Competitive Flexible Procedure was introduced as the exclusive way that buyers can award work when utilising Dynamic Markets.

The combination of the two is an additional example of the government’s attempt  to give public authorities greater flexibility when procuring goods and services from suppliers.

But we’re getting ahead of ourselves. If you’re looking for an overview of the Competitive Flexible Procedure and what it means for public procurement, keep reading.

What is the Competitive Flexible Procedure?

To put it simply, the Competitive Flexible Procedure is a new tender process that allows public authorities to mould their procurement processes as they see fit. With no template for procurement stages and timelines, buyers don’t have to rely on a one-size-fits-all approach as they would have with previous processes.

As long as authorities offer all suppliers equal opportunities, remain transparent in their decision-making, and adhere to the new MAT (Most Advantageous Tender) approach, they’re free to use the Competitive Flexible Procedure as they see fit.

This renewed approach avoids the rigidity that was present within older tender processes while also providing suppliers with a greater ability to negotiate and engage with buyers.

However, this flexibility needs to be outlined at the start of any process within the Competitive Flexible Procedure, as changes can’t be made once that particular procurement process has begun.

Why has the government introduced the Competitive Flexible Procedure?

The core aim of the Competitive Flexible Procedure, and the Procurement Act 2023 as a whole, is to level the playing field for suppliers across the board.

With a greater focus on social value and innovation, smaller suppliers are being given the opportunity to speak with public authorities more frequently.

A push for more dialogue, demonstrations, and touchpoints means established procurement relationships are now being challenged by suppliers who can offer more innovation and efficiency.

The ideological intent is obvious with the government clearly wanting to create a procurement space which doesn’t just cater to the largest suppliers and instead gives SMEs and regional suppliers a chance, which is both good for competition and for local economies.

When will the Competitive Flexible Procedure be used?

While the Competitive Flexible Procedure is the only method in which buyers can award work in Dynamic Markets, it can also be utilised elsewhere, and the government has given some broad outlines about where it may be best used:

• When a buyer is procuring for an off-the-shelf product/service, and they need to limit the number of suppliers submitting tenders.
• When a buyer wants to drive better value for money by increasing supplier engagement and discourse.
• When a buyer is procuring for a very niche product/service and needs suppliers to showcase their ability to understand and deliver the tender-specific details.
• When a buyer is looking for tender and project guidance from expert suppliers.
• When a tender requires something that is not currently available within the market, and the buyer needs to see new prototypes.

All of the above scenarios would be best supported by the use of the Competitive Flexible Procedure rather than a more rigid tender process, like those traditionally.

What are the key benefits and flaws of the Competitive Flexible Procedure?

Now we’ve provided some general context and applications for the Competitive Flexible Procedure, let’s lay out the pros and cons:

Pros:

• Improved flexibility gives authorities the power to shape tenders on a case-by-case basis, driving sensible decisions and outcomes.
• Reduced barriers for SME suppliers gives them a seat at the procurement table.
• Minimised bid submissions from suppliers who don’t meet entry requirements, reducing unwanted administrative tasks.
• Increased opportunities for innovation, both from a product/service perspective, and from a procurement perspective.
• More room for negotiation, which should result in a greater return on investment, both financially and from a social value perspective for public authorities.

Cons:

• With flexibility comes complexity; the Competitive Flexible Procedure may cause unnecessarily long-winded and convoluted procurement processes which may negatively impact outcomes for both suppliers and authorities in worst-case situations.
• Not having a singular structure means that processes and procedures aren’t as clear cut, potentially leading to more legal challenges where details are vague.
• Changing processes on a tender-by-tender basis will be more resource intensive, meaning authorities may have to re-allocate staffing resources to accommodate.
• By challenging the norm and introducing new processes to contend with, suppliers may be reluctant to bid, potentially lowering the total number of bids that authorities receive, narrowing options.

Balancing nuanced processes with limited resources will be a challenge for authorities, but if done correctly we should see an increase in efficient procurement processes.

Where can we expect to see Competitive Flexible Procedures?

Obviously, being the sole way that public authorities can award work within them we’ll see Competitive Flexible Procedure processes when dealing with Dynamic Markets.

(We’ve written more about Dynamic Markets and how they’re going to impact public procurement here.)

But don’t be surprised if you start seeing this new procedure used within complex procurement projects outside of Dynamic Markets.

They’re especially likely to appear within the Construction and ICT markets – markets of considerable complexity which could benefit from a more flexible approach. This is particularly true where supply chain management is a crucial aspect of a project.

The Competitive Flexible Procedure is more than just another reform under the Procurement Act 2023 – it’s a chance to reshape how public procurement works, in the right circumstances. For suppliers, it means new opportunities to compete on a more level playing field. For authorities, it offers flexibility to deliver better outcomes if handled well. The question now is whether buyers and suppliers are ready to embrace the change.