Evaluation procedures

Evaluation procedures are the formalized procedures a buyer uses to assess bids or proposals objectively and without discrimination. NATO's competitive procurement procedure states that the procurement authority must develop and follow such procedures for the evaluation of bids. The term belongs to competitive procurement, where a buyer assesses supplier bids against the requirements, criteria and selection method published in the solicitation.

Canadian federal sources describe the same concept in related words. CanadaBuys speaks of evaluation criteria and the selection method in the tender notice, and the Office of the Procurement Ombudsman refers to the procedures stipulated in the bid solicitation. For a supplier, evaluation procedures are the rules that decide how a bid will be read, tested and ranked.

What NATO's procurement rules require of evaluation

The NATO procurement procedure sets the basic obligation: formalized evaluation procedures must exist, and they must be followed so that evaluation is objective and non-discriminatory.

The NATO procurement manual explains what evaluation involves. It includes a preliminary examination of valid offers for responsiveness to the solicitation's specifications and requirements, an analysis of cost and benefit, and a determination of price and value. A designated Evaluation Panel or Proposal Evaluation Team conducts the work. That team uses the criteria and method predetermined in the Source Selection Plan and stated in the solicitation. The manual treats the requirement definition, the criteria and method, and the evaluation together as the basis for selecting the offer that best serves the Organization's interests.

How CanadaBuys describes bid evaluation

On how bids are evaluated and selected, CanadaBuys states that bids are normally evaluated on relevant technical merit and overall best value, according to the selection method specified in the tender notice. The evaluation team assesses the technical bid against the evaluation criteria in that notice.

The Office of the Procurement Ombudsman's review of PSPC procurement practice adds a compliance point. Bid evaluation must follow the procedures stipulated in the bid solicitation, and bids must be tested for responsiveness to the solicitation's contractual, technical and financial requirements.

Mandatory, point-rated and combined approaches

CanadaBuys identifies three ways of evaluating the technical bid:

• Mandatory technical criteria only: a bid either meets each requirement or it does not.
• Point-rated technical criteria only: the team scores the bid against rated criteria.
• Mandatory and point-rated criteria combined: a bid must first meet the mandatory requirements, then earns points on the rated ones.

The tender notice states which approach applies, so the approach is known before a supplier starts writing.

Selection methods applied after mandatory requirements

Once mandatory requirements are assessed, the buyer applies the selection method stated in the tender notice. CanadaBuys describes these methods:

• The lowest-priced bid.
• The best overall value.
• The highest technical bid within a stipulated budget.

NATO uses the same logic. Its best value approach follows the method specified in the solicitation and may combine technical merit and price.

What evaluation procedures mean for a supplier

A bid should be prepared against the specific evaluation procedures, criteria and selection method in the solicitation. A supplier must satisfy every mandatory requirement, address any rated criteria in the format requested, and provide the technical and financial information the buyer asks for. A bid that fails a mandatory requirement or is not responsive to the solicitation can be set aside before rated criteria or price come into play. Read the evaluation section of each solicitation closely and build your response around it.