All bids submitted by businesses are critically and objectively examined (evaluated).

The goal of the evaluation process is to achieve value for money using a fair, objective, and transparent process that ensures the most appropriate supplier is selected to meet the procurement objectives.

After you submit a bid for a tender, it will be evaluated with all other bids against the evaluation criteria to determine which bid best meets the requirements and provides value for money.

Steps in a common evaluation process

Each evaluation process is tailored to achieving the specific outcomes that procurement however, there are some common steps that generally occur in all evaluations.

An authorised person will approve the evaluation strategy (evaluation plan) prior to any approach to the market. This will determine

  • who will evaluate bids (evaluation team)
  • how a bid will be evaluated (evaluation methodology)
  • the qualities that a bid will be evaluated against (evaluation criteria)

Once the tender closes, the evaluation team is briefed on how to evaluate bids and the evaluation bids is conducted inline with the approved evaluation strategy.

Members of the evaluation team are asked if they have any conflicts with the businesses (people or business) that have bid. If there is a conflict, perceived or actual, is identified, the conflict is managed by the chair of the evaluation teams. Sometime this results in the team member being removed from the evaluation.

Members of the evaluation team individually assess each bid against the published evaluation criteria outlined in the tender documentation. A numerical score is given to each criteria of a bid.

All members of the evaluation team meet to discuss their individual assessments and agree on the best value for money bid(s). Sometimes this may include

  • shortlisting businesses
  • seeking clarification on bids
  • presentations from businesses
  • taking reasonable due diligence steps

After the assessment, members of the evaluation team recommends a supplier(s) that provides the best value for money and seek approval for the selection(s) prior to awarding the contract(s).

Once the selection is approved, contracts can be signed and all successful and unsuccessful businesses are offered feedback on their bid.

What are evaluation criteria?

Evaluation criteria are the criteria used to help agencies assess which bid best meets its requirements and provides value for money. Evaluation criteria are included in tender documentation and helps businesses prepare their best bid.

Typical evaluation criteria will generally assess a combination of quantitative (cost) and qualitative (non-cost) considerations. These considerations may include the business':

  • bid price / whole-of-life cost
  • relevant experience and past performance
  • capability and capacity to deliver the intended outcomes
  • ability to comply with the specification and contractual terms and conditions
  • financial viability and risks

Generally, there are three types of criteria:

Mandatory criteria - are the minimum standards that are essential. Bids that fail to meet one or partially meet any of the mandatory criteria do not proceed in an evaluation.

Weighted criteria - assesses the capabilities and qualities of a bid which are given a weighting based on their relative importance to achieving the outcome.

Non-weighted criteria - are not scored and not mandatory. They may be used to determine potential risks or value add opportunities and are not scored.