Qualification criteria

Qualification criteria are the minimum qualifications or requirements a supplier must satisfy before it can take part in a procurement. They answer one question: is this supplier permitted to compete? A bidder that does not meet them is not considered further, however strong its proposal might be.

NATO procurement material describes these requirements as "minimum qualifications" and "eligibility requirements". They can concern legal and regulatory competence, economic and financial standing, technical and professional capacity, and security risk. Canadian government guidance uses the same idea under the heading of qualification and eligibility criteria.

How NATO procedure defines an eligible vendor

NATO procurement procedures require the procurement authority to state vendor eligibility requirements, including any minimum qualifications or restrictions. An eligible vendor is defined by reference to four areas: legal and regulatory competence, economic and financial standing, technical and professional capacity, and security risk. The full procedure is published on nato.int.

NATO also states that eligibility requirements are specified in the documentation for each procurement call. A supplier cannot assume that the requirements from one competition carry over to the next. The NATO procurement opportunities page adds that these opportunities are generally reserved for firms registered in NATO member nations, subject to exceptions.

Qualification criteria compared with evaluation criteria

The two terms are often confused, but they do different work.

• Qualification criteria decide whether a supplier is allowed to participate.
• Evaluation criteria decide how compliant proposals are assessed and compared.

NATO procurement guidance requires evaluation criteria to be reliable, clear and measurable so that submissions can be assessed consistently. That requirement is set out in the NATO procurement manual. Qualification is the gate. Evaluation happens once a supplier is through it.

Typical qualification areas in Canadian government guidance

The Government of Canada's Trade Commissioner Service describes typical qualification and eligibility criteria in its guide to selling to governments and multinationals. The areas it lists are:

• legal existence and good standing;
• financial strength or turnover;
• relevant experience and references from similar projects;
• sector-specific certifications or accreditations;
• compliance with regulatory, anti-corruption, sanctions, human-rights, data-protection or similar requirements; and
• the ability to deliver in specified locations or meet service levels.

The guidance presents these as requirements a supplier should be ready to demonstrate when approaching government buyers.

NATO eligibility rules that reach Canadian suppliers

Canada is a NATO member nation, so Canadian firms can pursue NATO opportunities, and each call sets its own requirements. A NATO Allied Command Transformation solicitation requires bidders to be established in a NATO member nation, work in the required field, be legally authorized to operate where the contract is performed, and demonstrate relevant past performance.

The NATO Communications and Information Agency (NCIA) requires companies to hold a Declaration of Eligibility for each competition before they receive solicitation documents and participate. The agency explains this on its procurement types and methods page.

For procurement financed through common funding, NATO policy limits participation to suppliers from participating nations unless an exception applies. The policy looks at the supplier's country of origin and, among other factors, the location of its principal production facilities, effective management or beneficial ownership. See the NATO procurement policy.

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

Read the eligibility, mandatory and qualification sections of every solicitation before drafting anything else. Then assemble the evidence each one asks for. Depending on the procurement, that can include incorporation or registration documents, financial information, project references, certifications, declarations, personnel information and security documentation. Keep these records current so that a short bid window does not leave you unable to prove eligibility.