We launched a call for tenders and at the end of the bidding period we received several proposals. We come to the important stage of selecting the best proposal.
During the call for tenders, we identified points on which the bidders would be evaluated, but not only on the price. Here is an overview of a approach for evaluating the bids received.
We will have to make an evaluation grid of the different proposals. During the call for tenders, the different criteria were identified and a weighting was indicated for each.
Our table or evaluation grid will have one line for each criteria and a weighting for each. The table will also have one column per submission received.
| Criteria | Weighting | Bidder 1 | … | Bidder X |
| Concept | 30 | |||
| Project Manager | ||||
| … | ||||
| Total | 100 |
Our grid will have as many lines as we had evaluation criteria indicated during the call for tenders.
We will make a total of points for each bidder.
During the call for tenders, you indicated the weighting of the criteria and its impact on the evaluation of the bid. It is up to you to establish this weighting, before the call for tenders, and to indicate it in the RFP. Do you have a bonus for the most interesting bid before considering the price?
Our table will have a line for the amount submitted by each bidder. Each amount will be recalculated, influenced by the score on criteria. I encountered different methods of weighting the amount submitted. Some regions may by regulation impose a method. In this calculation, we integrate the respect of the criteria with the submitted price. For example, for the best bidder according to the criteria, the price is not changed. For other bidders, their prices are increased according to the difference with the best score. A 10% lower score would increase the bidder’s price by 10%.
| Criteria | Weighting | Bidder 1 | … | Bidder X |
| Concept | 30 | |||
| Project Manager | ||||
| … | ||||
| Total | 100 | 100 | 80 | |
| Price | 100 $ | 100 $ | ||
| Adjusted Price | 100 $ | 120 $ |
The last line of the table will represent the revised value of the proposed price for each of the bidders. If you want to select the lowest bidder, it will be based on this adjusted price.
Other criteria may also exist. Some streams of ideas advise eliminating bids that have not reached a point threshold, or have a deviation deemed too high, for example, 20% compared to other bids. Several laws and regulations may limit what can be done in the weighting, at the local level, of the country or world trade if the country making the call for tenders adheres to certain agreements or is a member of an organization such as WTO (World Trade Organisation).