Bid evaluation

Bid evaluation is the process of assessing submitted bids or proposals against the evaluation criteria and selection methodology stated in the solicitation. Its purpose is to determine the successful bidder and to achieve best value or another stated basis of selection. The buyer does not invent the rules after bids arrive. The criteria and the method are set out in the solicitation documents before suppliers respond.

NATO sets the same expectation for its competitive procurements. It requires formal evaluation procedures that are objective and non-discriminatory, and it requires the solicitation to specify the evaluation methodology and criteria (NATO procurement procedure). Canadian federal procurement follows a similar logic, with bid evaluation forming part of the solicitation and contract-award process.

How federal bid evaluation is structured in Canada

Public Services and Procurement Canada (PSPC) states that bids are normally evaluated on technical merit and overall best value, according to the basis of selection in the solicitation (PSPC, bidding on opportunities). The basis of selection explains how the successful bidder will be chosen.

The Treasury Board Directive on the Management of Procurement gives contracting authorities responsibility for designing and conducting bid evaluation, financial assessment and due diligence (Treasury Board directive). For professional services procurements, bid-solicitation files are expected to identify the statement of work, security requirements, mandatory and point-rated criteria, certifications, evaluation procedures and basis of selection (PSPC bid solicitation preparation).

Mandatory and point-rated criteria

CanadaBuys identifies three federal technical-evaluation methods: mandatory criteria only, point-rated criteria only, or a combination of the two. The evaluation team assesses the technical bid against the criteria in the tender notice (CanadaBuys, how bids are evaluated and selected).

• Mandatory criteria must be satisfied for a bid to remain eligible for further evaluation. The Treasury Board directive requires mandatory technical criteria to be limited to essential requirements.
• Point-rated criteria assign points for value-added elements above the mandatory requirements.
• Basis of selection states how the winning bid will be chosen once the evaluation is complete.

PSPC states that suppliers must fulfill all mandatory criteria to proceed in the evaluation process (PSPC, preparing a bid).

Fairness, transparency and separate financial assessment

CanadaBuys states that financial information is assessed separately from technical information to support fairness. The Public Service Commission of Canada says bid-evaluation criteria must be provided in request-for-proposal documents and applied in an open, fair and transparent manner (Public Service Commission, audit of procurement).

The Canada Revenue Agency describes the process as assessing bids against pre-established evaluation criteria, with a selection methodology that determines how the winning bid will be chosen (CRA contract bidding and awards process audit).

What bid evaluation means for a supplier

A supplier must respond to every applicable criterion and provide the requested evidence. The bid has to clearly demonstrate the supplier's ability to perform the work, because evaluators assess what is written in the bid against the stated criteria. A missed mandatory criterion ends the bid's progress, however strong the rest of it is.

Meeting every requirement does not guarantee an award. Contracts go to the most competitive bidder, based on the evaluation of competing bids against the stated criteria. Read the evaluation criteria and basis of selection in the solicitation before writing, and structure the response to match them.