Mandatory Criteria (M-Criteria)

Mandatory criteria are the minimum requirements that a bid must satisfy to be considered further in a procurement. Each one is evaluated on a simple pass/fail basis. Public Services and Procurement Canada (PSPC) states that a bid failing any mandatory criterion is non-compliant and will receive no further consideration.

In Canadian federal procurement, the established expression is "mandatory criteria" or "mandatory evaluation criteria." They are usually written with imperative words such as "shall," "must," or "will," and they sit apart from rated criteria, which earn points. A bid has to clear every mandatory criterion before its other strengths are looked at.

How pass/fail evaluation works under PSPC guidance

PSPC's evaluation criteria guidance defines mandatory requirements as the minimum requirements for bids to be considered. Evaluators do not assign them a rating. A criterion is either met or it is not, and the evaluator records the result accordingly.

The same guidance says mandatory requirements must not be changed or relaxed after bid closing. Evaluators therefore cannot overlook a missed criterion because the rest of the bid is strong. The Office of the Procurement Ombudsman describes mandatory criteria as part of the standard federal evaluation process and says that failing one must result in disqualification. It also notes that they identify the minimum requirements essential to successfully completing the work.

Mandatory criteria compared with rated criteria

The two types of criteria do different jobs in an evaluation:

• Mandatory criteria set the essential minimum. They are pass/fail and carry no points.
• Rated criteria (also called point-rated criteria) let evaluators score bids and compare their relative merits.

PSPC advises that mandatory criteria be restricted to the essential elements and capabilities needed to perform the work, and that they be kept separate from point-rated criteria. A requirement that is only desirable belongs in the rated section, where a bidder can still earn partial credit.

What mandatory criteria commonly cover

The research on federal practice lists several kinds of requirements that appear as mandatory criteria:

• financial stability
• licensing and certifications
• essential equipment-performance characteristics
• minimum personnel qualifications
• delivery commitments
• technical compliance
• budget limits

Mandatory criteria also carry environmental requirements. PSPC publishes mandatory green procurement criteria that must be included in applicable procurement instruments. They cover greenhouse gas disclosure and reduction targets, environmentally preferable packaging, and embodied carbon in construction.

What mandatory criteria mean for a supplier bidding on Canadian public contracts

Canada.ca bidding guidance states that suppliers must fulfill all mandatory criteria to move forward in the evaluation process. A bid team should treat the mandatory criteria as a checklist to complete before any effort goes into rated sections.

• Read the mandatory criteria and the bid instructions closely.
• Provide the evidence or documentation requested for each criterion.
• Meet every mandatory requirement by the stated deadline.
• Show compliance in the form the solicitation requires.

Because one missed criterion removes the whole bid, a final compliance review against the solicitation text is worth the time before submission.