Competitive Flexible Procedure: 6 SME Steps (2026)

By Aoba Works · Published October 26, 2026 · 20 min read

How this guide was made: drafted with AI assistance from the official sources linked below, then passed an automated editorial check before publishing. Our process

• Procurement Act 2023
• Tendering
• Sme
• Vcse

The competitive flexible procedure (CFP) is one of the two competitive tendering routes in the Procurement Act 2023. Under it, the buyer designs its own process (stages, shortlisting, negotiation, demonstrations) instead of running the single-stage open procedure. For an SME, that means each CFP tender has its own rules, and those rules are written in the tender notice and tender documents. Read those first, plan your bid around the stages they set out, and then follow the six steps below.

Which option is right for you?

Choose your starting point based on how often you bid and how much time you have. Every route below uses free official pages.

The beginner row is usually the right first move for everyone. A CFP is defined by its own documents, so no general guide (this one included) can stand in for reading the notice.

What Is the Competitive Flexible Procedure?

The competitive flexible procedure is a non-prescribed procurement route under the Procurement Act 2023 that lets the buyer design a bespoke process instead of following a fixed procedure. Section 20(2) sets out two competitive tendering procedures. One is the open procedure, a single stage with no restriction on who can submit a tender. The other is "such other competitive tendering procedure as the contracting authority considers appropriate". That second one is the CFP.

The Act came into force on 24 February 2025 (legislation.gov.uk). It replaced the old menu of restricted, competitive dialogue, competitive procedure with negotiation and innovation partnership. Buyers who used to choose one of those can now build something similar, or something new, inside the CFP.

The freedom has three legal limits that matter to you as a bidder:

• Proportionality. Section 20(3) says the buyer must ensure the procedure is "a proportionate means of awarding the public contract, having regard to the nature, complexity and cost" of the contract (s.20). A five-round negotiation for a small cleaning contract would be hard to justify.
• Transparency. Section 20(1) requires the procedure to run "in accordance with a tender notice and any associated tender documents". If a stage isn't in the documents, the buyer can't add it halfway through.
• Equal treatment. The GOV.UK short guide says all suppliers must get the same treatment and the same negotiation opportunities (GOV.UK short guide).

Section 20(4) lists things a CFP may do. It may limit the number of participating suppliers, either generally or for particular tendering rounds. It may refine award criteria under section 24. It may also stop suppliers who were knocked out in an earlier round from taking part again (s.20).

Example (illustrative): a council wants a new case-management system for its housing team. It runs a CFP with a participation stage, initial tenders from five shortlisted suppliers, a demonstration day, one negotiation round with the top three, and final tenders. Under the old rules this would have been a competitive procedure with negotiation. Under the Act it is simply a CFP that the council designed.

Competitive Flexible Procedure vs Open Procedure

The open procedure is a single-stage, fixed process open to all bidders with no negotiation. The CFP can have several stages, a shortlist and negotiation, all designed by the buyer for that contract. Both start with the same notice, the UK4 tender notice, which Find a Tender describes as "published to advertise for tenders or requests to participate" (Find a Tender notice types).

How you write the bid changes more than the legal mechanics. In an open procedure you have one chance, so the written tender has to be complete. In a CFP your first submission may only be a request to participate or an initial tender, and later rounds give you room to improve your offer.

Pitfalls when comparing the two:

• Treating an initial CFP tender as a draft. Under the fourth design in the Cabinet Office guidance there is no separate participation stage: initial tenders are scored to pick finalists (Cabinet Office guidance). A weak first tender can end your bid. Fix: write every scored round as if it were the final one.
• Expecting negotiation that isn't there. A CFP can be a simple two-stage process with no negotiation at all. Fix: look in the notice for an explicit statement on whether negotiation will happen. The short guide says buyers should state it (GOV.UK).
• Missing the tender because you only filtered for one platform. Low-value and above-threshold opportunities can show up in different places. See Contracts Finder vs Find a Tender to set up your searches properly.

Competitive Flexible Procedure Stages

Stages vary by contract. Most CFPs include some mix of participation and shortlisting, initial tenders, dialogue or negotiation rounds, refinement of requirements and final tenders, all set out in the tender documents. The Cabinet Office describes four example designs that buyers often start from (Guidance: Competitive Tendering Procedures):

1. Simple two-stage. Participation stage, then tendering, with no negotiation. This is close to the old restricted procedure.
2. Multi-stage with limited negotiation. Participation, initial tenders, negotiation, final tenders.
3. Dialogue or negotiation to develop requirements. Several negotiation rounds, with intermediate assessments that narrow the field.
4. No separate participation stage. Everyone submits initial tenders, those are scored, and finalists are invited to submit final tenders.

Here is how a typical multi-stage CFP runs from the supplier's side:

1. Tender notice (UK4) published. It invites either requests to participate or first tenders. Ward Hadaway's summary of the guidance confirms the notice can be used both ways (Ward Hadaway).
2. Participation stage. You answer the conditions of participation (financial standing, technical ability and so on) and any selection questions used to shortlist. Under the Act these must be "a proportionate means of ensuring the supplier's relevant capacity or ability" (Welsh Government guidance). For how to answer these, see Selection Questionnaire Procurement Act 2023: 7 SME Steps.
3. Shortlist. The buyer applies the objective criteria from the notice and invites a limited number of suppliers to the next stage.
4. Initial tenders and intermediate assessment. These tenders are assessed, but they are not the final tenders that lead to award. The guidance says buyers should check exclusions "at key points" in multi-stage procedures (Welsh Government guidance), so keep your exclusion declarations up to date.
5. Negotiation, dialogue, demonstrations or site visits. The guidance lists negotiation, dialogue, demonstrations and site visits among the activities a CFP can include. The short guide notes that negotiations "could last a few hours on a single topic or take many months" (GOV.UK short guide).
6. Refinement of award criteria (optional). Only allowed if the documents provided for it, and only before final tenders are invited (s.24).
7. Final tenders. These are scored against the award criteria to find the most advantageous tender. For how scoring works, see Most Advantageous Tender: 5 Steps and a Scoring Example.
8. Assessment summary, contract award notice (UK6), standstill. Every supplier that submitted an assessed tender gets an assessment summary before the UK6 is published (s.50). Publishing the UK6 starts a mandatory standstill of eight working days (s.51).

The guidance also says every stage in a CFP should have a commercial purpose (Cabinet Office guidance). If a stage looks like it exists only to wear bidders down, you can raise it as a clarification question.

Competitive Flexible Procedure Timescales

The CFP has statutory minimum periods for the participation stage and the first tendering stage. Beyond those, the buyer sets the timetable, and it has to be reasonable for the contract. The minimums below come from section 54 and the Cabinet Office Guidance: Time Periods (as of October 2026).

Participation period (CFP only):

Tendering period (open and CFP):

A planned procurement notice counts as "qualifying" only if it was published "at least 40 days and no more than 12 months before the tender notice" (Guidance: Time Periods). If you spot a UK3 for a contract you want, expect the tender window to be as short as 10 days and start preparing then.

Two more rules protect you. Time limits must be the same for every supplier. They must also take account of "the nature and complexity of the contract" (s.54). The minimums are a floor, so a complex CFP should give you more than 25 days.

Timescale pitfalls and fixes:

• Assuming later rounds get 25 days too. The Act sets no fixed minimum for each negotiation round or for re-submitted tenders. Fix: copy every deadline from the procurement timetable in the tender documents into your diary on the day you download them. Block time for each round, including meetings.
• Light touch contracts with no minimum. Many health, social care and education services are light touch, so a CFP for them can move quickly. Fix: if your sector is light touch, keep standard documents (policies, insurance certificates, case studies) ready so you can turn round a participation response in days.
• Confusing calendar days with working days. Participation and tendering periods are given in days. The standstill period is in working days. Fix: check the wording in the timetable and ask a clarification question if it is unclear.

Competitive Flexible Procedure Examples

The CFP suits complex or innovative requirements: IT system builds, redesigned services, and contracts where the buyer wants to negotiate on price, quality or terms. The short guide says negotiation is usually used to "seek lower prices and whole life cost; improve quality; and/or improve contractual terms and conditions" (GOV.UK short guide). The four scenarios below are illustrative, built on the official designs. They are not real tenders.

Example A: simple two-stage CFP for a training contract (design 1). A university wants staff mental-health training. It runs a participation stage with light conditions of participation and shortlists five suppliers using published criteria. Those five submit tenders, and there is no negotiation. For a small training provider this feels much like the old restricted procedure. The participation stage is short to write, and the full proposal comes later.

Example B: negotiation on a software build (design 2). An NHS trust shortlists four suppliers. Each submits an initial tender, and the trust holds one negotiation meeting per supplier on price and service levels before final tenders. A small software firm needs someone senior who can attend a negotiation and commit to price changes on the spot.

Example C: developing the requirement with the market (design 3). A combined authority wants to redesign a community transport service and doesn't yet know whether the answer is buses, demand-responsive vehicles or volunteer drivers. It runs two dialogue rounds with intermediate assessments, refines its award criteria before inviting final tenders, and puts weight on social value. A social enterprise with local knowledge can shape the requirement during dialogue, but it has to commit time over several months.

Example D: no participation stage, with a demonstration (design 4). A council asks every interested supplier for an initial tender plus a recorded product demonstration, scores them, and invites the top three to submit final tenders. The guidance confirms CFPs can include demonstrations and site visits (Welsh Government guidance).

Pitfalls across these examples:

• Under-resourcing the long middle. In Example C, the cost to you is staff time across rounds, not the written tender. Fix: before you submit a request to participate, count the meetings and rounds in the timetable and name who will attend each one.
• Leaving social value until the final tender. When the buyer refines its criteria, social value commitments often become more specific. Fix: draft measurable commitments early. Social Value in Tenders: PPN 002 Steps and Answer Examples shows how to structure them.
• Assuming a CFP means a big contract. Proportionality cuts both ways, and a buyer may use the simple two-stage design for modest contracts. Don't skip a CFP just because the label sounds complicated.

Does a Competitive Flexible Procedure Limit the Number of Participating Suppliers?

Yes. A buyer can lawfully limit how many suppliers take part in, or move on through, the stages of a CFP, as long as the limit and the criteria are set out in advance. Section 20(4) allows a CFP to "limit the number of participating suppliers, generally or in respect of particular tendering rounds". Section 20(5) allows exclusion by reference to conditions of participation and intermediate assessment of tenders.

The Act sets no maximum or minimum. The short guide says so directly: "The Act does not set a maximum or minimum number" (GOV.UK short guide). The Cabinet Office does suggest working figures, though (as of October 2026, Guidance: Competitive Tendering Procedures):

The guidance adds that "one size does not fit all". The right number depends on the contract, how much interest the market shows and how complex the procedure is. Buyers must use objective criteria from the tender notice to decide who goes through (Welsh Government guidance).

Section 24 adds a safeguard. A buyer can't refine award criteria in a way that would have let a supplier who was knocked out earlier get through, had the refinement been made at the start (s.24). The goalposts can't move in a way that makes earlier eliminations unfair.

Pitfalls and fixes:

• Not knowing the shortlist size. If the notice says "up to five suppliers will be invited to tender", only your rank against the others counts, not whether you meet a pass mark. Fix: find the shortlisting criteria and weightings and put your strongest evidence (contract examples, accreditations) against the questions with the highest scores.
• Ignoring tie-break rules. Some documents explain what happens if suppliers tie at the cut-off. Fix: read the tie-break rule and answer the deciding question in full.
• Being cut on a condition you could meet by contract start. The guidance allows buyers to let suppliers meet some conditions "before the award of the contract", if this is disclosed upfront (Welsh Government guidance). Fix: if you're mid-way through getting something like Cyber Essentials, check whether the documents allow this and say clearly when you will have it.

Competitive Flexible Procedure Template (PA23)

There is no one template that sets out how every CFP must run, because each procedure is designed for its contract. The government does publish a drafting template that many buyers start from. The (PA 2023) Competitive flexible procurement template, its template guidance and a stages list sit on the Cabinet Office's Procurement Pathway under "Procure > Finalise and publish procurement pack". The template guidance describes itself as "a starting point for the drafting of supplier facing documentation which might feature in a competitive flexible procedure".

According to Bevan Brittan, the template was published on 7 January 2025, ahead of go-live. It is "a series of headings of sections, which the contracting authority must complete", covering requirements and objectives, preliminary market engagement, the procurement process and timetable, service levels and KPIs, and contract risks and terms. Using it isn't mandatory.

This matters to you because many central government CFP packs will follow those headings. Once you know the layout, you can go straight to the section on the procurement process and timetable and the section on participation and award criteria.

How to use the template as a supplier (example workflow):

1. Open the template guidance page and download the Word document. The page advises using "the most recent version uploaded on the tool".
2. Note the section headings, and when a real tender pack arrives, compare its sections with them.
3. Write down any heading that is missing or empty in the buyer's pack (for example, no timetable for negotiation rounds). Each gap is a clarification question to ask.

Pitfalls:

• Expecting the template to tell you the rules of your tender. It is a blank structure. Fix: the buyer's completed documents are the only rulebook that counts.
• Assuming every buyer uses it. Councils, NHS bodies, universities and devolved bodies may use their own formats. The Welsh Government publishes its own guidance, for example (gov.wales). Fix: search the documents for the procedure description, wherever it sits.
• Copying a "CFP bid template" from a third-party site. Paid bid templates can be useful for structure but they can't predict a buyer's stages. Use them for formatting only.

6 Steps SMEs Should Follow When Bidding Under a Competitive Flexible Procedure

Work through these six steps for every CFP tender: read the process, confirm the shortlisting rules, prepare for negotiation, track the timetable, document compliance and use the feedback. They are built around the CFP's main feature, which is that the rules change from one tender to the next. If you haven't registered on the Central Digital Platform yet, do that first. Find a Tender Registration: 5 Steps for UK Suppliers 2026 covers it.

Step 1: Map the buyer's process from the tender notice

1. Open the UK4 Tender notice on Find a Tender (notice types).
2. Confirm the procedure is the competitive flexible procedure and find the description of how it will be carried out.
3. Download every associated tender document at once. Check whether the buyer says some documents will follow later, because staggered documents trigger the 30-day electronic minimum (s.54).
4. Sketch the stages on one page (participation → initial tender → negotiation → final tender, or whatever the buyer has designed) and match each to one of the four Cabinet Office designs.

Common mistake: going straight to the questions. Fix: don't write anything until you can draw the process.

Step 2: Confirm conditions of participation and shortlisting criteria

1. List each condition of participation and mark it as met, not met, or met by contract start.
2. Find the shortlist size and the scoring method for the participation stage.
3. Check whether the buyer allows conditions to be met before award (Welsh Government guidance).
4. Decide whether to go ahead. A useful rule of thumb (an example, not an official test): if you fail a pass/fail condition outright and can't meet it by award, stop now.

Common mistake: a turnover requirement that seems out of proportion puts you off. Fix: section 20(3) requires proportionality. Ask a clarification question politely, or look at bidding with a partner.

Step 3: Prepare for negotiation or dialogue before you are shortlisted

1. Check the documents for whether negotiation will happen and which subjects are open to it. The short guide says "any subject" can be negotiated "provided it is proportionate and relevant" (GOV.UK short guide).
2. Choose one negotiator who has authority to change price and terms.
3. Set your walk-away position on price, service levels and liability caps before the first meeting.
4. Keep a written record of every change you offer, since the final tender should match what you agreed in the room.

Common mistake: discounting in negotiation without changing the delivery model, then losing margin. Fix: tie every concession to a change in scope, volume or term.

Step 4: Track the bespoke timetable and every clarification

1. Put all the deadlines from the procurement timetable into a shared calendar: clarification deadlines, submission times, meeting slots and the expected standstill.
2. Check each deadline against the statutory minimums (25 days participation; 25 to 35 days tendering; 10 days where a qualifying UK3 or urgency applies) (Guidance: Time Periods).
3. Read every clarification response and every republished document. Under section 24, refined criteria come with republished documents (s.24).

Common mistake: missing a refined award criterion because you worked from the original pack. Fix: before each round, download the latest documents again and compare version numbers.

Step 5: Document compliance at every stage

1. Answer exactly the question asked, within any word limits, in the format required.
2. Keep your exclusion information and supplier details current, since buyers may recheck exclusions at key points (Welsh Government guidance).
3. Keep a dated copy of everything you submit in each round.
4. If the buyer cancels, look out for a UK12 Procurement termination notice (Find a Tender) rather than assuming the process has stalled.

Common mistake: leaving a change of circumstances (new subcontractor, change of ownership) out of a later round. Fix: update your details before each submission.

Step 6: Use the assessment summary and the standstill period

1. When your assessment summary arrives, compare your scores with the winner's. Section 50 requires information on your tender and, if different, the most advantageous tender (s.50).
2. Note the UK6 Contract award notice date. The eight-working-day standstill starts that day (s.51).
3. If you think the procedure departed from its own published rules, raise it with the buyer within standstill and get legal advice quickly.
4. Write down three lessons for your next CFP bid while the tender is still fresh.

Common mistake: filing the assessment summary away unread. Fix: go through it question by question and rewrite your weakest answer in your content library.

Next steps

You can do the first two actions today in less than an hour.

DIY actions for today:

1. Read the GOV.UK short guide The Competitive Flexible Procedure and Negotiation. It is short and sets out what buyers should tell you.
2. Search Find a Tender for open UK4 tender notices in your sector, pick one that is a CFP, and map its stages as in Step 1. Practising on a live tender is the quickest way to learn the format.
3. Download the (PA 2023) Competitive flexible procurement template guidance so you recognise the headings when a central government pack arrives.

If you would rather not do it yourself: you can hire a freelance bid writer or a bid consultancy. They usually charge by the day or a fixed fee per bid. There is no official rate, so ask for a written fixed quote that says which rounds are included (as of October 2026; check each provider's own terms). This suits firms that have a strong service but little writing time, or that are facing a multi-round CFP for the first time. It is a poor fit for very small contracts, where the fee could take most of the margin. A writer also can't attend negotiations with authority to commit your business, so you still need your own person in the room for Step 3. All the official guidance and Find a Tender itself cost nothing to use.

Related guides on this site:

• Selection Questionnaire Procurement Act 2023: 7 SME Steps
• Most Advantageous Tender: 5 Steps and a Scoring Example
• Social Value in Tenders: PPN 002 Steps and Answer Examples
• UK Public Procurement: Contracts Finder vs Find a Tender
• Find a Tender Registration: 5 Steps for UK Suppliers 2026

FAQ

What does CFP stand for in procurement?

CFP stands for competitive flexible procedure. Under section 20 of the Procurement Act 2023 it is one of the two competitive tendering procedures, alongside the open procedure. The buyer designs it for each contract, within the limits of proportionality and its own tender notice.

Is the competitive flexible procedure part of the Procurement Act 2023?

Yes. It is set out in section 20(2)(b) and has applied since the Act came into force on 24 February 2025. It replaced the older restricted, competitive dialogue and negotiated procedures from the previous regulations.

Where can I find official competitive flexible procedure guidance?

Start with the GOV.UK short guide on the CFP and negotiation, then the Cabinet Office Guidance: Competitive Tendering Procedures and Guidance: Time Periods. The drafting template is on the Procurement Pathway. Bidders in Wales should also read the Welsh Government version.

Can SMEs bid under the competitive flexible procedure?

Yes. Any supplier can request to participate or submit a tender, unless it is excluded or fails the published conditions. The Cabinet Office guidance warns buyers that "unnecessarily complex and/or time-consuming procedures" could put SMEs off, and the proportionality duty in section 20(3) backs that up. Plan for the staff time a multi-round process needs before you commit.

Sources

• Procurement Act 2023, section 20: Competitive tendering procedures
• Procurement Act 2023, section 24: Refining award criteria
• Procurement Act 2023, section 50: Contract award notices and assessment summaries
• Procurement Act 2023, section 51: Standstill periods
• Procurement Act 2023, section 54: Time limits
• GOV.UK: The Procurement Act 2023 – The Competitive Flexible Procedure and Negotiation
• GOV.UK: Guidance – Competitive Tendering Procedures
• GOV.UK: Guidance – Time Periods
• Welsh Government: Procurement Act 2023 guidance – competitive tendering procedures and tender notices
• Procurement Pathway: (PA 2023) Competitive flexible procurement template guidance
• Procurement Pathway: (PA 2023) Competitive flexible procurement template stages list
• Find a Tender: Notice types and sequences
• Bevan Brittan: Government releases its Competitive Flexible Procedure template
• Ward Hadaway: Procurement in a Nutshell – Guidance: Competitive Tendering Procedures

Spotted something out of date or wrong? Tell us at shigoto.ai.note@gmail.com. Guides are re-checked against official sources on a rolling schedule.