The Different Types of Public Procurement Procedures Explained

When a public buyer launches a tender, they don’t just pick suppliers at random. 

They follow a specific procedure - essentially, the set of rules that governs how suppliers can compete. These procedures matter because they determine how much work you’ll need to do, how much competition you’ll face, and how much dialogue (if any) you’ll have with the buyer.

For suppliers, understanding these procedures isn’t optional - it’s a competitive advantage. If you know what type of procedure you’re dealing with, you can plan better, allocate resources wisely, and decide whether it’s worth pursuing in the first place.

Let’s break down the five most common procurement procedures, why buyers use them, and what they mean for you as a supplier.

1. Open Procedure: The Most Accessible Route

If there’s one procedure every supplier comes across, it’s the open procedure. This is the simplest way governments buy: the notice is published, and any supplier can submit a full bid. There’s no pre-qualification, no shortlisting - just one big, open competition.

When buyers use it
You’ll see open procedures for straightforward purchases where the requirements are clear - things like catering, cleaning, or IT hardware. The buyer doesn’t need complex negotiations; they just want the best mix of quality and price.

What it means for you

• Pro: Accessible to everyone - great for SMEs or suppliers new to public procurement.
  
  

• Con: Because it’s open to all, competition is often intense. You’ll need a compliant, well-structured bid to stand out.

Example
A local municipality puts out a tender for school furniture. The specification is detailed: tables, chairs, and delivery times. It’s an open procedure, meaning every furniture supplier in the region - and beyond - can submit a bid.

2. Restricted Procedure: For the More Qualified Few

The restricted procedure adds a filter to the process. It’s two stages: first, suppliers complete a Selection Questionnaire (SQ) or ESPD to show they meet minimum requirements. Only shortlisted suppliers are then invited to submit full bids.

When buyers use it
Buyers use restricted procedures when contracts are larger, more complex, or higher risk. They don’t want to sift through dozens of weak bids, so they narrow the field early.

What it means for you

• Pro: If you’re shortlisted, your chances of success increase since you’re competing with fewer, qualified suppliers.
  
  

• Con: If you don’t make the cut at the qualification stage, you’re out - no matter how strong your bid could have been.

Example
A regional transport authority needs cleaning services across 50 train stations. They issue a restricted procedure, inviting suppliers with proven experience in large, multi-site contracts. Only the strongest make it to the final round.

3. Negotiated Procedure (Competitive with Negotiation): Refining the Offer

In this procedure, buyers shortlist suppliers, collect initial bids, and then enter negotiations to refine the offers. It’s a more flexible process that allows buyers to shape solutions alongside suppliers.

When buyers use it
This is common for high-value or technically complex projects where the buyer knows what they want but needs to refine details with suppliers.

What it means for you

• Pro: You get a chance to adjust your offer based on buyer feedback.
  
  

• Con: It’s resource-intensive - negotiation rounds can be lengthy, and competition is tough.
  
  

Example
A healthcare trust wants to implement a new patient records system that integrates with existing software. Because integration requirements are complex, the buyer invites shortlisted IT providers to negotiate terms, features, and costs before awarding the contract.

4. Competitive Dialogue: When the Buyer Needs Your Input

Competitive dialogue is a step beyond negotiation. Here, buyers don’t have a clear idea of the best solution at the start. They invite shortlisted suppliers into structured discussions to help define what the solution should look like - before asking for final bids.

When buyers use it
For large-scale, innovative, or complex projects where the solution isn’t obvious. Think infrastructure, smart city technology, or new digital platforms.

What it means for you

• Pro: A chance to showcase your expertise and shape the buyer’s requirements.
  
  

• Con: It takes time - dialogues can run for months, and the process is demanding.

Example
A city government wants to build a smart transport system using real-time data, but they don’t know the best technical solution. Through competitive dialogue, suppliers help define what’s possible before submitting final proposals.

5. Innovation Partnership: Creating Something New

The innovation partnership is designed for situations where no suitable solution exists on the market. Buyers partner with one or more suppliers to co-develop a product or service and, if successful, purchase it afterward.

When buyers use it
For research-heavy projects or new technologies. Often linked to sustainability, healthcare, or digital transformation initiatives.

What it means for you

• Pro: Close collaboration with the buyer and potential for a long-term relationship.
  
  

• Con: It’s high-risk. Development projects can fail, and timelines are usually long.

Example
A public catering authority wants fully compostable packaging for school meals, but current products don’t meet requirements. They launch an innovation partnership, selecting suppliers to co-create a new packaging solution.

Turning Procedures Into Strategy

Procurement procedures aren’t just bureaucracy - they define how you compete. For suppliers, knowing the differences is crucial:

• Open procedures give you broad access, but with heavy competition.
  
  

• Restricted procedures reward suppliers with strong credentials.
  
  

• Negotiated and dialogue procedures allow more engagement but demand more resources.
  
  

• Innovation partnerships reward creativity but carry higher risks.

Understanding these nuances helps you make smarter choices about which opportunities to pursue and how to prepare.

That’s where Mercell helps. Our platform doesn’t just show you tenders - it shows you the procedure type, timelines, and requirements upfront, so you can qualify opportunities faster and plan your bidding strategy with confidence.