Technical evaluation of bids

Technical evaluation of bids is the stage of a public procurement where evaluators assess what a bidder proposes to deliver. They measure the technical response against the mandatory and point-rated criteria set out in the solicitation, using the evaluation method and weightings fixed in advance. The result is a decision on technical compliance and, where the solicitation uses rated criteria, a technical score.

That score or compliance result is then used with price to select the successful bid, often on a best-value basis. The term is a general public procurement term, not a standard with a single formal definition. Related terms include mandatory technical criteria, point-rated criteria, technical merit, evaluation grid, two-envelope process and basis of selection.

Three ways Canadian buyers evaluate technical merit

CanadaBuys identifies three approaches to technical evaluation: mandatory technical criteria only, point-rated technical criteria only, or a combination of both. The tender notice tells bidders which approach applies and what the criteria are. Evaluation teams assess the technical bid against those published criteria.

CanadaBuys also states that technical information is assessed separately from financial information to support fairness. Indigenous Services Canada says the same thing in its tendering guidance, noting that technical criteria are assessed using the pre-established methodology and weightings in the call for tenders or proposals.

Mandatory criteria and non-compliance

Mandatory technical criteria are pass or fail requirements. A published RCMP solicitation states that failure to meet any mandatory technical criterion makes an offer non-compliant and ineligible for further consideration. A bid that fails one mandatory criterion is not scored on its other strengths.

Buyers are expected to keep these requirements reasonable. The Office of the Procurement Ombudsman states that technical evaluation criteria should be limited to what the requirement needs and should be proportionate to its complexity. PSPC guidance adds that mandatory criteria must not unfairly restrict competition.

Point-rated criteria and minimum scores

Point-rated criteria let evaluators distinguish between compliant bids on quality. PSPC guidance for professional services says these criteria must describe the requirement clearly, align with the statement of work, and state any minimum score needed to proceed. A bid that falls below a stated minimum, overall or on an individual criterion, does not advance.

PSPC fairness-monitoring reports show how this works in practice. Construction and facilities projects document technical evaluation plans, evaluation grids, individual evaluator assessments and consensus meetings.

Envelopes, testing and verification

Some solicitations ask for technical and financial information in separate envelopes. Indigenous Services Canada describes a two-envelope process in which technical details go in the first envelope and the bid price in the second.

For technology and equipment, technical evaluation can go beyond reading the written bid. A PSPC fairness-monitoring report on a body camera and evidence management procurement records written-bid assessment, performance testing and usability testing before financial evaluation.

What it means for a supplier

• Address every mandatory technical criterion explicitly and include the evidence the solicitation requires.
• Answer point-rated criteria in the requested format, because evaluators score only against the published criteria and method.
• Follow submission instructions, including any separate technical and financial envelopes.
• Meet any stated minimum technical score, overall or per criterion.
• Make sure proposed products, samples or demonstrations can pass any stated testing.
• Where the solicitation says mandatory technical requirements continue for the contract term, keep meeting them after award.