Contract evaluation process

The procedure outlined below was adopted as our corporate policy for evaluating tenders in March 2005. You can download a more detailed version at the bottom of this page.

The policy aims to provide an evaluation process that is vigorous, open and auditable.

Evaluation procedure

As part of the tender specification drafting process, the following procedure should be observed:

Tender evaluation panel

A tender evaluation panel will be established. Its composition will be determined by the value of the procurement.

The composition of an evaluation panel will be determined by the value and complexity of the procurement. For low-value straightforward tenders, a panel may consist of two or more officers from the originating department. When more complex tenders require a range of expertise, the composition of the panel should reflect this.

Price/quality split

A price/quality ratio for evaluating the tender responses will be agreed.

This will vary according to the requirement, and there is no fixed ratio. For example, where the goods required are identical and can be obtained from a number of suppliers, the only decision criterion is likely to be price, and the cheapest supplier should be awarded the contract. In general, the tighter the tender specification is drawn, the more emphasis there will be on price. Where it is more difficult to state exactly what is required and similar solutions can be offered, all of which are capable of meeting the requirement, the element of quality in the evaluation process will be more significant.

Quality criteria

The quality criteria will be established and will be published in the Invitation to Tender document (ITT).

There is no definitive list of criteria, as this will vary depending on the nature of the requirement. As a rule, the list of criteria should be published in the ITT, in order of importance. It should also be clearly indicated if criteria are mandatory or desirable. This avoids resources being wasted in compiling and evaluating tenders where mandatory criteria cannot be met. Mandatory criteria should be evaluated first: any tender not complying with such criteria should be rejected at this stage without further consideration. For some tenders, this may be done at a pre-qualification stage.

Although there is no definitive list of criteria, the following might be included:

• financial standing (mandatory for contracts valued in excess of £100,000)

• insurances (mandatory for contracts valued in excess of £100,000)

• technical references (mandatory for contracts valued in excess of £100,000)

• acceptance of East Renfrewshire Council’s standard terms and conditions of contract

• capability

• capacity

• experience

• performance standards

• quality

• after sales service

• warranties

• spares availability / cost of spares

• inspection

• standardisation

• provision of training / training manuals

• management information

• aesthetic value

• sustainability / environmental issues.

• overall financial budget **

** If there is a maximum budget for a project, it should be stated in the ITT. A clear statement that a maximum budget applies will cut out work and costs for both the potential bidder and the evaluator.

Weightings

Weightings will be established for each of the criterion.

Once criteria have been established, a weighting must be applied to each one, according to its importance to the performance of the contract. The individual weightings should total 100%.

Weightings will be established for each of the criterion.

Evaluation scoring model

An Evaluation Scoring Model should be compiled, detailing the criteria to be included and the price/quality split. A copy should be dated and filed with the tender documentation, to provide proof for future audit purposes that the evaluation process has been determined prior to the issue of the ITT.

A scoring or rating system scores the tenderer’s proposals against each of the criterion set. The system gives a mark for the tenderer’s ability to meet each of the criterion on a scale of 0 – 5 as follows:

The total weighted price and quality scores are adjusted in terms of the pre-determined price/quality split and added to provide a total score.

Evaluation scoring records

Following the opening of the tender responses, each member of the Evaluation Panel will complete an Evaluation Scoring Sheet, which will be dated and retained with the tender documentation.

The individual evaluation scores will then be combined to determine the overall ranking of the tender. Where tenders are issued via our Central Purchasing and Procurement Section, the amalgamation of scores will be undertaken by an officer of that section. Details of the amalgamated score will be kept with the tender documentation.

Variance from standard procedure/guidance

Due to the variety and complexity of certain procurement exercises that we undertake, there may be occasions when alternative methods of weighting and scoring are appropriate. In such circumstances, the officer(s) involved would have to justify any departure from the advice contained above. However, irrespective of the weighting/scoring model adopted, the following steps must be followed:

During the tender specification drafting process:

• establish a Tender Evaluation Panel

• establish a price/quality split

• determine the evaluation criteria to be used, and include them as part of the tender specification

• record details of the above steps in the tender record file

Following the evaluation of tenders submitted:

• record details of the evaluation process and include them in the tender record file

It is essential that officers involved in the tender evaluation process can demonstrate that the evaluation methodology adopted was determined prior to the invitation of tenders.

Contact

For further advice or information, use the links on the left hand side of this page, or contact our Procurement Section at:

Email: procurement@eastrenfrewshire.gov.uk

Related Documents

Evaluating Tenders (PDF 233.3kb)