The Evaluation Process

What is it
The Evaluation Process is the procedure by which a qualified evaluation panel receives, opens and evaluates the requested tender documentation from potential suppliers. The evaluation process is a complete review of the received proposals based on pre-defined evaluation criteria. The criteria should be comprehensive enough to determine the best value solution for the procuring entity so that a recommendation for award of contract can be made.

The evaluation panel
The receipt, opening, and evaluation of requested documentation from potential suppliers must be carried out by a competent evaluation panel and in accordance with all applicable laws, as well as the principles of impartiality and transparency. Those involved in the process must maintain integrity and professionalism in all aspects of evaluation. All submissions received must be kept secure during the evaluation process. The confidentiality of the submitted documents must also be maintained subject only to applicable freedom of information or public records legislation.

The evaluation panel must be able to identify the most appropriate tender outcome, by using the pre-determined evaluation criteria and making a recommendation to the procuring entity for award of contract.

Preparation and Planning – advance planning is important for the timely and proper conduct of the evaluation process. It is recommended that the evaluation panel hold a preparatory/planning meeting before the requested documentation is received. All members of the evaluation panel should understand:

Operation of the Panel – the way in which the members of the evaluation panel operate (e.g. whether or not they jointly or independently access the submitted documentation) depends on local law and regulation. Regardless of the operation method that is chosen, panel members must serve only the procuring entity's interests to ensure the fairness of the evaluation process, and must never manipulate or unfairly influence other members of the panel.

Impartiality and Non-Disclosure – all panel members should sign a declaration of impartiality and non-disclosure or similar kind of declaration before they start to evaluate the submitted documentation. By signing such a document each panel member:

Receipt/Opening
Depending on the type of procurement, the evaluation process may involve several stages. The first stage usually includes the receipt, opening and compliance validation of the submitted documentation.

Where e-tendering applies, the procurement portal will receive the tenders and the security built into the system only allows for opening after the final tender receipt time/date is reached. After this time, the procurement team will open the tenders and forward send them electronically, along with the evaluation score sheets, to the panel to enable evaluation to begin.

When paper-based tenders are received the following receipt and opening process applies:

Receipt – upon receipt of tender documentation, the representative for the procuring entity must record the following information:

In addition:

Opening – opening of the submitted documentation may be public or non-public.

Compliance
Once the tender documentation has been opened it should be checked for compliance with the requirements of the tender.

Preliminary Examination of Tenders

Non- Compliance
As a general rule, non-compliance with any of the fundamental procedural requirements, specifications, and other technical and substantive requirements will result in the rejection of non-compliant submissions. The evaluation panel should establish (prior to evaluation) which procedural requirements will be classified as substantive so that non-compliant submissions are easily identified.

However, there may be major or minor deviations on the compliance requirements and the evaluation team shall decide which are major and which are minor. For example, the submission of a number of copies that is fewer than the required number of copies may be considered as a minor deviation and the submission will not be rejected.

Additionally, if there is non-compliance with non-fundamental requirements this should not constitute a reason for the rejection of the submitted tender documentation, but should lead to a request for clarification that will rectify the error or omission.

Requests for Clarification
These requests from the procuring entity can be used for clarification of non-fundamental and fundamental requirements, but they may not be used to bring fundamental requirements into compliance. Requests for clarifications do not imply negotiations and any request for clarification and its corresponding response must be in writing and copied to all bidders.

Evaluation of Tenders
Following the compliance check process, the evaluation panel should apply the published evaluation criteria to evaluate the tenders received.

Evaluating for Lowest Price  
When evaluating for lowest price all bidders must have met the procedural requirements and all formalities, as well as the mandatory specifications and any other substantive requirements. Once this has been verified, the evaluation panel should examine the submitted tenders to ensure:

and record its findings on a compliance matrix to be included in the evaluation report.

Technical Evaluation  
When the compliance check is completed, the evaluation panel should examine the submitted tenders on the basis of the published evaluation criteria and their relative weightings. If a more detailed evaluation methodology was disclosed in the invitation to tender, that methodology must be followed. The members of the evaluation panel must:

The scores by each member of the evaluation team for each criteria or sub-criteria will be uploaded to a spreadsheet to allow for aggregation and the averaging of scores for each bidder.

Evaluation of Tenders for Complex Services
Where tenders have been issued for a complex services contract, e.g. for consultancy services, the technical and financial evaluations may be handled in a slightly differ manner. Because the procuring entity is seeking expertise rather than a physical commodity it is essential that each bidder demonstrates through its methodologies and the skills of the proposed experts that it has the capacity to successfully undertake the task or project. The World Bank has developed a system that is widely followed:

Technical Evaluation – the tender document will state that the technical evaluation is carried out first and each bidder must pass a defined threshold for its technical proposal. This threshold is frequently in the range 75% – 80% and only those bidders which pass this threshold will proceed to the financial evaluation.  This is to ensure that only technically competent bidders may be considered for contract award.

Financial Evaluation – the financial proposals are opened in a public meeting, at which the technical scores for each bidder are declared.

The total cost only of each bid is considered and the bidders are ranked in order of the lowest price which is allocated the highest percentage score with other bidders allocated percentages on a proportional basis.  

Combined Technical and Financial Evaluation
The percentage scores for technical and financial proposals are combined (on a published basis) and the bidder with the highest score is recommended for award of contract.

Evaluation Report and Recommendation to Award
Once the independent reviews have been carried out by the panel members, the evaluation panel will meet as a body to consider all evaluation findings for both technical and financial reviews and to establish the rankings of the individual bidders. At this meeting the evaluation panel will:

The recommendation to award will be issued to the body with contracting authority e.g. contracts committee or ministry procurement committee. The recommendation to award will be contained in the tender evaluation report.

The tender evaluation report should be prepared by the chairperson of the evaluation panel with support from panel members and should include the following: 

Award Approval
Depending on the applicable law and regulations the contracting authority will make the final approval for awarding the contract and:

Award Notice
Once the award approval has been given, the contracting authority shall notify the successful bidder in writing that its submission has been accepted for contract award. All other bidders must also be notified of the final decision to award.

Mandatory Standstill
Following written notice of award, a mandatory standstill period (the number of calendar days depends on applicable law and regulation) must elapse between the award notification and the signing of the contract to allow for any complaints or objections. Once the standstill period has passed, the contracting authority may continue with the conclusion of the contract in accordance with the conditions that were set forth in the contract tender documents.