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Evaluation Criteria in Tenders

May 15, 2012

Evaluation criteria are standards that are used to assess how well a supplier bid meets an authority’s requirement during a procurement process. All evaluation criteria must be linked to the subject matter of the contract. There are two types of evaluation criteria which are called ‘Selection’ criteria and ‘Award’ criteria:
  • Selection criteria focus on a supplier’s past experience and track record only in order to filter out the suitably qualified and experienced suppliers capable of providing the Authority’s requirement.
  • Award criteria relate to the specific contract and are forward looking. Contracts are normally awarded on the basis of the “most economically advantageous tender” which means, the tender offering best overall value for money both in terms of price and quality.
These are two distinct stages which are normally evaluated separately. For example, if the PQQ requests suppliers evidence a Risk Management Policy as a minimum standard for selection, the award criteria for the quality evaluation may request suppliers demonstrate how they will apply their risk management policy to identify and manage the risks associated with the contract.
Assessment of supplier responses to the evaluation criteria are made solely on the information that suppliers provide in either their pre-qualification questionnaire (PQQ) or Written Bids in response to an invitation to tender (ITT). No decisions should be made on previous experience or knowledge of working with a supplier in the past. All questions should have a sound purpose, help make an assessment of supplier suitability, and be underpinned by a defined method for scoring it which can be pre-published to the supplier.

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