Rated Requirement

A rated requirement is an evaluation criterion that assigns points or scores to bidders based on how well they meet specified needs beyond just the minimum threshold. Unlike pass/fail mandatory criteria, these let you differentiate between qualified suppliers by measuring quality, depth of experience, or extent of capability. Multiple vendors could do the job? Rated requirements help you identify the best fit.

How It Works

The Government of Canada Supply Manual establishes the framework for defining requirements in competitive procurements, though it doesn't use the specific term "rated requirement." In practice, these point-rated criteria show up most often in professional services arrangements and complex technical procurements. Public Services and Procurement Canada's assessor guidance breaks down a typical example: a resource evaluation might total 110 points—35 for education, 15 for certification, and 60 for experience.

Here's the evaluation sequence: bidders must first pass all mandatory criteria to be considered responsive. Only then do evaluators score the point-rated elements. The Procurement Ombudsman's 2022 review of Department of National Defence practices examined 10 procurement files and found that point-rated criteria awarded scores on a scale for factors like past performance and relevant experience. The highest-scoring compliant bid wins, assuming it also meets any financial evaluation requirements under the basis of selection.

PSPC's guidance on supply arrangements notes that simplified processes using point-rated criteria typically apply to procurements above $40,000. The criteria must be clear, measurable, and directly aligned with your statement of work. They can't be overly restrictive or favor specific suppliers. When you're designing these criteria, establish the scoring scale upfront—whether it's a simple 0-5 range or something more granular—and document exactly what performance or quality level corresponds to each score.

Key Considerations

• Subjectivity requires documentation: Unlike binary mandatory requirements, point-rated criteria involve judgment calls. Your evaluation framework must be detailed enough that different assessors would reach similar scores for the same proposal.

• Weight matters as much as points: A criterion worth 10 points weighted at 40% of the technical score carries more influence than a 20-point criterion weighted at 15%. Design your weighting to reflect actual priorities.

• Avoid "nice to have" creep: The Procurement Ombudsman's findings are clear—criteria must be appropriate to the requirement. Don't award points for capabilities you won't actually use. It inflates costs and may be challenged.

• Technical vs. financial split: Most federal competitive processes separate technical point-rated evaluation from financial evaluation, then combine them according to a predetermined formula to identify the highest-ranked bid.

Related Terms

Mandatory Criteria, Basis of Selection, Financial Evaluation, Technical Evaluation, Statement of Work

Sources

• Government of Canada Supply Manual - Official federal procurement policy and procedures

• Assessor Guidance for Supply Arrangement Requirements - PSPC guidance on point-rated technical evaluation criteria

• Procurement Practice Review of the Department of National Defence - Procurement Ombudsman analysis of point-rated criteria application

Transparency protects you when designing rated requirements. Clear scoring matrices and documented evaluation rationales withstand scrutiny far better than vague criteria that leave bidders guessing.