Evaluation Methodology

Evaluation methodology is the method a contracting authority uses to evaluate suppliers' responses, either at the selection stage or at the tender/award stage. Public procurement glossaries use the term in this sense, as in the West Yorkshire Combined Authority glossary of public procurement terms.

In Canadian federal procurement, the term covers the planned evaluation approach. That includes the mandatory and point-rated criteria, the selection method, the evaluation procedures and the basis on which the contract is awarded. The Office of the Procurement Ombudsman describes these elements together as evaluation criteria and selection plans in its 2023 procurement practice review.

The parts of an evaluation methodology

An evaluation methodology is built from several connected pieces:

• Mandatory criteria: conditions a bid must satisfy to remain responsive.
• Point-rated criteria: scored criteria used to distinguish between compliant bids.
• Selection method: the rule used to identify the successful supplier.
• Evaluation plan and evaluator instructions: internal procedures that support consistent and documented assessment.

Federal practice calls for a process that evaluates bids consistently with the planned approach, supported by an evaluation plan and evaluator instructions, as set out in the Procurement Ombudsman's review.

Selection methods used by federal departments

The selection method is the part of the methodology that decides who wins. The Department of National Defence has used the lowest-priced responsive bid, with or without technical criteria. It has also used the highest combined rating of technical merit and price. These are described in the Procurement Ombudsman's 2022 review of DND procurement.

Under a lowest-price approach, a bid first has to be responsive. Under a combined-rating approach, technical merit and price are both counted in the final result. The solicitation document states which approach applies.

Disclosure and equal treatment of bidders

The Treasury Board Contracting Policy requires that evaluation criteria and the weighting assigned to them be communicated to bidders, to support fairness and transparency. The Procurement Ombudsman reported on this requirement in its review of Employment and Social Development Canada procurement. The same review states that evaluation criteria and selection methods must be established consistently with applicable law, regulations and policy.

Evaluators must apply the stated criteria strictly and equally to all bidders. They cannot add criteria after bids are submitted or apply the stated ones unevenly.

How evaluation runs in practice

The Procurement Ombudsman's review of Parks Canada procurement shows the steps that sit inside an evaluation process. They include the evaluation plan, evaluator instructions, individual and consensus evaluation, clarification of bids, financial evaluation, selection of the winning bidder and notification of results.

What it means for a supplier bidding on Canadian public contracts

The evaluation methodology in the solicitation document is the scoring rulebook for your bid. Read the mandatory criteria first, because a bid that misses one is not responsive. Then address each point-rated criterion in the manner and format the solicitation requires, so evaluators can find and score your answer.

Check the selection method before you price. A lowest-priced responsive bid and a highest combined rating of technical merit and price reward different bid strategies. Because criteria and weightings are communicated in the solicitation, you can plan your response around them. The sources do not set out one universal supplier procedure for every Canadian procurement, so rely on the instructions in each solicitation.