Generally, bid evaluation will be carried out in accordance with evaluation criteria or a selection methodology specified in the invitation to tender.
Bidding parties should submit clear and well-organised bids, but nonetheless, a great deal of thoroughness is required in the bid evaluation process to ensure that proposals are properly understood, bids are compliant with the invitation to tender, no information is overlooked and that the correct conclusions are reached.
An initial review of the offers received is generally undertaken to determine their responsiveness and conformity to the conditions in the invitation to tender documents.
A more detailed evaluation of compliant bids is then be undertaken against a number of pass/fail criteria. A technical determination should be made to ascertain whether the bidder’s technical solution is feasible, appropriate and deliverable within certain requirements, i.e. proposed material and costs.
There are a number of bases upon which a preferred bidder can be identified:
- Lowest price
- Most economically advantageous tender (MEAT)
- Understanding of the employer requirements
- Relevant experience
- Technical skills
- Resource availability
- Management skills and systems
- Past performances
While it is common for the lowest priced tender to be awarded the contract, other factors such as relevant experience and the perceived quality of the solution should also be taken into consideration as the lowest price does not always result in the best long-term value.