How bids are evaluated and selected
Get an overview of how a bid is evaluated and how the selection process works. With this information you will know what to look for while preparing your bid solicitation.
Bids are normally evaluated on relevant technical merit and overall best value, in line with the selection method specified in a tender notice. To ensure fairness, financial information is assessed separately from the technical information.
The evaluation team must assess the technical bid using the evaluation criteria outlined in a tender notice. They may use three methods of evaluation:
- On the basis of mandatory technical criteria only
- On the basis of point-rated technical criteria only
- A combination of mandatory technical criteria and point-rated technical criteria
The evaluation team uses rated criteria to assess various elements of the technical bid and each bid is ranked based on its relative merits. They use point-rated criteria to evaluate the factors over and above the mandatory requirements of the tender opportunity.
The minimum points that must be achieved and the maximum points that can be achieved for each criterion are identified in the tender notice. If you have any questions about point rating, be sure to ask the contracting officer by the deadline for questions.
Methods for selecting a bid
Once it has been determined that your bid has met the mandatory criteria, it will enter the selection phase of the procurement process. The method that PSPC will use to select a winning bid will be outlined in the tender notice. The following will give you an idea of what these methods are.
Lowest-priced bid
This method is used for bids where the lowest price is the determining factor in selection. The difference between the successful and unsuccessful bidder could be as little as 5 cents, which is why you should be as competitive as possible in your pricing.
Best overall value
This method uses a point rating scale, which is often based on the lowest evaluated price per point. This is determined by dividing the bid price by the total points achieved in the technical evaluation of the bid.
Other approaches, besides price per point, may also be used to determine best overall value. This will be set out in the tender notice.
Highest technical bid within a stipulated budget
This method is used on bids seeking the best possible technical solution within a specified budget. A supplier is invited to propose a solution to a problem or a method of achieving an objective.