Mandatory Criteria vs. Point-Rated Criteria

Mandatory criteria and point-rated criteria are the two main kinds of technical evaluation criteria in Canadian government solicitations. Mandatory criteria set the minimum requirements that are essential to successfully completing the work. They are assessed on a pass/fail basis, and a bid that fails one receives no further consideration.

Point-rated criteria assess value-added factors and the relative technical merit of each proposal. They use an assigned scoring scale so evaluators can distinguish one compliant proposal from another and identify the best overall value to the Crown. The Treasury Board of Canada Secretariat sets out both definitions in its guidance on evaluation criteria.

How Canadian buyers define each criteria type

Mandatory criteria answer a yes or no question: does the bid meet the requirement? There is no partial credit. A bid either demonstrates compliance or it is set aside.

Point-rated criteria answer a different question: how well does the bid meet the requirement? They are used to compare proposals and reward quality beyond the minimum. Both are evaluation criteria, not contract types. A solicitation can use mandatory technical criteria only, point-rated technical criteria only, or a combination of the two, as the PSPC guidance on bidding explains.

The order of evaluation: mandatory first, rated second

Government guidance states that bids are evaluated against the mandatory requirements first. Only bids that satisfy every mandatory criterion move on to point-rated evaluation. The CanadaBuys Buyer's Guide on specifying evaluation criteria says that only offers meeting all mandatory criteria are subject to point rating.

This means a strong technical proposal cannot make up for a missed mandatory requirement. A high score on rated criteria is only reached if the bid has first passed every pass/fail test.

Examples of mandatory and rated requirements

CanadaBuys identifies several typical mandatory criteria:

• required licences;
• minimum equipment performance characteristics;
• delivery dates or conditions;
• essential qualifications or experience of proposed personnel; and
• budget limitations.

Point-rated criteria typically assess value-added elements. The PSPC bidding guidance lists these examples:

• strategy;
• principles;
• methodology;
• company experience;
• team or resource experience; and
• facilities and equipment.

Solicitations signal the difference through their wording. A CanadaBuys tender notice, the crowdsource data service solicitation, states that requirements identified with "must" or "mandatory" are mandatory, while rated requirements are identified as "rated" or by reference to a score. The exact wording and evaluation consequences are controlled by each solicitation.

Scoring scales and minimum thresholds

CanadaBuys requires solicitations to state the maximum points available for each rated criterion and any minimum thresholds needed for compliance. A minimum score can apply to an individual rated criterion, to the overall technical score, or to both. The PSPC Centralized Professional Services System applies the same approach in its assessor guidance for supply arrangement requirements.

A minimum threshold on a rated criterion works as a second gate. A bid can pass every mandatory criterion and still be found non-compliant if it falls below a stated minimum score.

What this means for a supplier bidding on Canadian public contracts

Treat every mandatory criterion as a gate. Satisfy each one fully, and provide the evidence the solicitation asks for. Failing a single mandatory requirement can make the bid non-compliant and end the evaluation.

Then write to earn points. Address each rated criterion in the required format, with enough detail for evaluators to score it. Check the stated maximum points and any minimum thresholds before you decide where to spend your effort. Read the solicitation's own wording closely, because it determines which requirements are mandatory and which are rated.