Rated Requirement (R)

When a procurement includes Rated Requirements—often marked with an "(R)" in solicitation documents—you're dealing with evaluation criteria that get scored on a point scale rather than simple pass/fail. These are the criteria that separate an acceptable bid from a winning one. Unlike Mandatory Criteria, which operate as absolute thresholds, rated requirements allow procurement officers to compare bidders and determine best value through competitive scoring.

How It Works

Evaluation happens in stages. The Supply Manual Section 4.35.1 is clear that mandatory technical evaluation criteria must be assessed first, using a simple "yes" or "no" answer for each requirement. Only after a bid passes all mandatory criteria does it move forward to rated evaluation. At that point, assessors award points based on how well each bidder meets the rated requirements.

In practice, these point-rated criteria might award higher scores for faster delivery times, more extensive experience, or superior technical specifications. A 2022 Procurement Practice Review of the Department of National Defence found 10 files containing point-rated evaluation criteria where, for example, "more points being awarded for having a faster vehicle, or a higher level of education, or more experience." The accumulated points from technical rated requirements typically combine with financial scores—often through a weighted formula—to determine which bid offers the best overall value.

The distinction matters. Rated requirements give you flexibility that mandatory criteria don't. While the Directive on the Management of Procurement emphasizes "limiting the number of mandatory technical criteria to those determined to be essential requirements," rated criteria let you differentiate between qualified bidders without risking unnecessary disqualification. You're measuring degrees of excellence rather than setting binary gates.

Key Considerations

• Sequence is non-negotiable: Bidders must pass all mandatory criteria before rated requirements even come into play. A bid that scores perfect points on rated criteria but fails one mandatory requirement gets eliminated.

• Clarity prevents challenges: Your rated requirements need transparent scoring methodologies. Vague criteria like "demonstrate innovation" without defined scoring bands invite bid challenges. Specify what earns 3 points versus 5 points.

• Don't create hidden mandatories: If something is truly essential, make it a Mandatory Criterion. Using rated requirements with minimum point thresholds can feel like a workaround, and evaluators need to ensure they're not unnecessarily restrictive in ways that favour certain bidders.

• Weighting reveals priorities: The point allocation across different rated requirements signals what matters most to your organization. A requirement worth 30 points clearly outweighs one worth 5 points in determining best value.

Related Terms

Mandatory Criteria (M): Pass/fail requirements evaluated before rated criteria. Point-Rated Criteria: Alternative term for rated requirements. Technical Evaluation: The assessment phase where both mandatory and rated requirements are scored. Best Value: The outcome determined by combining technical and financial scores.

Sources

• Supply Manual - Section 4.35.1: Mandatory technical evaluation criteria

• Procurement practice review of the Department of National Defence (2022)

• Directive on the Management of Procurement - Treasury Board Secretariat

When you're building your evaluation framework, think of mandatory criteria as the gate and rated requirements as the competition that happens inside. Get the balance right, and you'll identify the supplier who delivers genuine value—not just minimum compliance.