Restricted Procedure
A two-stage procurement: selection questionnaire first, then full tender from a shortlisted pool of qualified suppliers.
Definition
The Restricted procedure is a two-stage procurement where buyers first assess supplier capability (via a Selection Questionnaire or PQQ) and then invite only qualified suppliers to submit a full tender. Restricted is used where the buyer expects a large number of bidders but wants to evaluate only a shortlist; the shortlist size is typically capped at 5 to 10 suppliers depending on contract size and complexity. PA 2023 absorbs Restricted into the new "Competitive Flexible" procedure umbrella but the two-stage shape continues in practice.
How it works in practice
Stage 1 (selection) issues an SQ or PQQ alongside the contract notice. Suppliers respond with information on financial standing, relevant experience, exclusion grounds, and case studies. The buyer evaluates the responses and shortlists the top N suppliers (the cap is published in the contract notice). Stage 2 (tender) issues the full ITT to the shortlisted suppliers only; they submit a complete bid evaluated against the published award criteria. The Restricted procedure is procedurally heavier than Open: two stages mean two response windows, two evaluations, and two opportunities for challenge. The benefit is evaluation cost reduction: only the shortlist of 5-10 receives a full bid evaluation rather than every supplier who expressed interest. Statutory minimum response windows under PCR 2015 are 30 days at SQ stage and 30 days at ITT stage (these can be shortened with a prior PIN). Restricted suits high-value or strategic contracts where the buyer expects 15+ bidders and wants to invest evaluation effort on the strongest candidates. For sub-strategic or below-threshold contracts the lower procedural overhead of Open usually wins out. Under PA 2023 the Competitive Flexible procedure inherits the two-stage shape but with more flexibility on timeline and structure.
Common questions
When is Restricted procedure used?
For high-value or strategic contracts where the buyer expects a large number of bidders (15+) and wants to evaluate only a shortlist of the strongest candidates. Common in major construction, IT outsourcing, and managed service contracts. The Procurement Act 2023 absorbs Restricted into the Competitive Flexible procedure but the two-stage shape continues.
How is the shortlist size decided?
The buyer publishes the shortlist cap in the contract notice (typically 5 to 10 suppliers). The PCR 2015 minimum is 5; many authorities cap at 5 to keep evaluation costs manageable. The cap is fixed at publication and cannot be changed during the procurement.
How long does Restricted procedure take?
Typically 6 to 9 months from contract notice to award. The SQ stage runs 30+ days, evaluation 4-8 weeks, then ITT 30+ days plus 6-12 weeks evaluation, plus 10 days standstill. Complex high-value Restricted procurements can run 12 months or longer.