Evaluating the bids

Evaluating the bids is the stage of a competitive procurement where the buyer assesses each submitted bid against the requirements, evaluation criteria and selection methodology stated in the solicitation. The purpose is to determine the winning bid, or the best responsive bid. Indigenous Services Canada describes the bid evaluation as the step that determines the winning bid.

The term is standard procurement language, not an abbreviation. Canadian federal organizations, NATO procurement bodies and other public-sector buyers all use it. In each case the evaluation normally checks compliance with mandatory requirements first, then applies any point-rated criteria and the price or other selection factors named in the solicitation.

The order of evaluation: mandatory requirements, then rated criteria

Treasury Board of Canada Secretariat guidance says federal bids are first evaluated against mandatory requirements, and compliant bids are then assessed against point-rated criteria. A bid that does not meet a mandatory requirement does not move on to scoring.

Indigenous Services Canada applies the same sequence in its tendering-policy guidance. Bids received by the closing deadline are assessed against mandatory requirements on a pass/fail basis. Technical evaluation follows, using the pre-established criteria and weightings. Price or other stated selection factors are then applied as the solicitation describes.

Who evaluates bids in the federal government

Treasury Board guidance says technical proposals are evaluated by the project authority. It recommends an evaluation team of at least three people who understand the requirements and can evaluate the bids. Evaluators assess the bids independently. They then agree on whether mandatory requirements are met and on the scores for point-rated criteria. The guidance is set out on the Treasury Board evaluation criteria page.

Accessibility Standards Canada adds a planning point in its procurement standard. Bid evaluation determines the best responsive bid under the evaluation and selection methodology in the solicitation, and the process should allow sufficient time to assess accessibility requirements.

Rules evaluators must follow

The Office of the Procurement Ombudsman describes federal practice as evaluating bids according to the criteria in the bid solicitation. Evaluators must not use undisclosed criteria or factors, and they must review bids diligently and thoroughly. The criteria a supplier sees in the solicitation are therefore the only criteria that can decide the outcome.

How NATO evaluates bids

NATO follows the same principle. The NCIA states that bids are evaluated against the requirements outlined in the solicitation. NATO's procurement procedure requires solicitation documentation to specify the methodology and criteria used to evaluate bids or proposals. NATO's procurement opportunities guidance adds that bids are evaluated case by case by the relevant NATO procuring body.

What bid evaluation means for a supplier

• Submit a complete bid by the stated closing deadline.
• Demonstrate compliance with every mandatory requirement. A single failed pass/fail item can remove the bid from consideration.
• Address each rated criterion using the format, evidence, certifications and other instructions the solicitation specifies.
• Do not assume evaluators will consider information or criteria that the solicitation did not request.
• Read the evaluation and selection methodology closely before writing. It sets the weightings and the order of assessment that your bid will be judged against.

Evaluation is a structured comparison of your bid to the solicitation's own text. Bid teams that mirror that text in their responses give evaluators what they are required to look for.