How are tenders evaluated?
The criteria that will be used to assess your tender will be specified in the tender documents. They are used by the contracting agency to assess the relative strengths and weaknesses of each tender.
Knowing how your tender will be evaluated will enable you to focus your efforts on those areas, which are considered important by the contracting agency.
Conditions of participation and contract conditions
First and foremost, your tender will be assessed to see if it complies with mandatory tender (Conditions for Participation) and contract conditions. If it doesn't, it may be considered to be invalid and eliminated from further evaluation.
An assessment is then undertaken against each of the non-cost evaluation criteria. These will be specified in the tender documents and may include:
- the technical merit of your proposal;
- the capability of your business to fulfil the requirement including: technical and management competence, financial viability and relevant experience;
- the relevant skills, experience and availability of key personnel;
- quality assurance requirements; and
- the risks or constraints associated with your offer.
Value for money
A value for money assessment of each tender is then undertaken. This does not necessarily mean choosing the cheapest price.
When assessing value for money the contracting agency will weigh up the benefits of your tender against the whole-of-life costs of your tender. The value for money assessment may include consideration of wider benefits to the State, such as providing local employment opportunities.