How a Bid is Selected

Table of Contents

Selection on the basis of the lowest-priced bid

Only those bids that meet the mandatory technical criteria will be considered responsive (i.e. qualify for further consideration).

Within this category of responsive bids, price is the determining factor in selection.

The difference between the successful and unsuccessful bidder could be as little as 5 cents, which is why you should be as competitive as possible in your pricing.

Selection on the basis of best overall value

Bid solicitations usually include mandatory and point-rated technical criteria.

A point rating scale is developed and selection is often based on the the lowest evaluated price per point. This is determined by dividing the bid price by the total points achieved in the technical evaluation of the bid.

Other methods, besides price per point, may also be used to determine best overall value. The method being used will be set out in the solicitation document.

Selection on the basis of the highest technical bid within a stipulated budget

This method is used when seeking the best possible technical solution within a stipulated budget.

A supplier is invited to propose a solution to a problem or a method of achieving an objective.