Following market engagement to identify sufficient suitable providers, the Bank chose a ‘competitive dialogue’ procurement process, where potential bidders developed their design proposals in consultation with the Bank. The Bank saw the procurement as a “foundational phase” that allowed it to test capacity and capability and enter the delivery phase as an “intelligent customer”.26 The Bank’s procurement strategy included a practical “competed design” exercise—not often seen in the public sector—in which the final three bidders designed and built a simplified payment system. This helped test bidders’ technical approach and their 21 C&AG’s Report, paras 1.14-1.16 22 Q 3 23 Q 9 24 Q 3 25 Qq 4 and 53 26 Q 4 10 responsiveness to customer needs.27 The Bank recognised the exercise would be a “big effort”. To incentivise all bidders and reduce any barriers to continuing with the procurement, it decided to pay towards the cost of the exercise, with the two unsuccessful bidders each receiving £125,000.28