Technical Evaluation

Technical evaluation is the assessment of a supplier's technical bid or offer against the technical requirements and evaluation criteria stated in a solicitation. Canadian procurement guidance describes it as evaluating technical merit using mandatory criteria, point-rated criteria, or a combination of both. Financial information is assessed separately. CanadaBuys explains how bids are evaluated and selected.

The term is used in competitive public procurement where the buyer must determine technical compliance, technical merit or best value, either before or separately from evaluating price. The evaluation is carried out against the criteria published in the solicitation, so what a bidder submits is judged only on what the solicitation asks for.

The three technical evaluation methods on CanadaBuys

CanadaBuys identifies three methods: mandatory technical criteria only, point-rated technical criteria only, or a combination of both. The tender notice states which selection method applies, and bids are normally evaluated for relevant technical merit and overall best value under that method. The CanadaBuys bid evaluation page sets out these options.

• Mandatory criteria are assessed on a pass/fail basis.
• Point-rated criteria are scored factors used to compare offers that meet the mandatory requirements.
• Combined methods apply mandatory criteria first, then score the offers that pass.

Pass/fail rules and non-responsive offers

The client is responsible for the technical evaluation of offers, and mandatory criteria are assessed pass/fail. An offer that fails any mandatory criterion is considered non-responsive. CanadaBuys guidance on conducting a technical evaluation states both points.

PSPC guidance for professional services adds a check on the buyer's side. Mandatory technical criteria must be consistent with the statement of work and must not unfairly restrict competition. Point-rated criteria must also be consistent with the work described and clearly explain the requirement. See the PSPC guidance on bid solicitation preparation.

Two-envelope evaluation and the separation of price

Technical and financial information are assessed separately to support a fair evaluation. Under a two-envelope process, technical details and criteria are submitted apart from bid prices, and technical proposals are evaluated first. Indigenous Services Canada describes this process in its tendering guidance.

Technical evaluators must not receive financial offers until the technical evaluation is complete. This rule appears in the CanadaBuys evaluation process guidance.

Who evaluates and what gets documented

The client is responsible for the technical evaluation, while PSPC is accountable for the procurement process and must ensure that evaluations are fair and follow the solicitation. In other departments the technical authority carries out this work. The National Research Council lists drafting the statement of work and technical evaluation criteria, and evaluating bids against them, as technical authority responsibilities.

Evaluators record their work in a technical evaluation report. In supply arrangement and task authorization processes, the report must record the points assigned to point-rated criteria, the rationale for those points, and compliance with applicable minimum scores. PSPC assessor guidance covers these requirements. PSPC standing-offer templates likewise state that offers are assessed using the technical and financial evaluation criteria specified in the solicitation, as in the request for standing offers template.

The Office of the Procurement Ombudsman reviewed Environment and Climate Change Canada files and found that most competitive solicitations included a technical evaluation. It examined evaluation consistency, adherence to the planned approach and documentation as controls. Read the Ombudsman review.

What technical evaluation means for a supplier

Your bid is judged only against the criteria in the solicitation, so write to them directly.

• Address every mandatory technical requirement explicitly and provide the requested evidence, certifications and supporting information.
• Respond to each point-rated criterion in the format and level of detail the solicitation requires.
• Make sure proposed personnel, resources, methods, deliverables and experience satisfy the stated requirements.
• Follow submission instructions that separate technical and financial information where a two-envelope process is used.
• Do not rely on material outside the bid unless the solicitation permits it.

Missing a single mandatory requirement makes the offer non-responsive, whatever the strength of the rest of the bid.