What is EMVI?

EMVI stands for Most Economically Advantageous Tender. It is an evaluation method used in tenders to look not only at the lowest price, but also at other important aspects such as quality, sustainability, planning, and innovation. By using EMVI, contracting authorities can evaluate tenders on a wider range of criteria, leading to a more balanced and valuable choice. EMVI ensures that the contract is awarded to the party offering the best value for money, rather than simply to the cheapest bidder.

How does EMVI work?

EMVI is used to evaluate bids based on various criteria set out in the tender documents. These criteria are weighted and scored based on how well the tenderer meets each requirement. The purpose of EMVI is to determine the overall value of a tender by considering not only the price but also the added value a tender offers.

The EMVI process consists of the following steps:

Establish award criteria:

The contracting authority determines which criteria are important for the project, such as price, quality, sustainability, innovative capacity, and time schedule. These criteria are included in the tender documents.

Weighting criteria:

Each criterion is given a certain weighting depending on its importance to the contract. For example, price may count for 40%, while quality counts for 30% and sustainability for 30%.

Review of entries:

Tenders are evaluated on each criterion and given a score. These scores are then multiplied by the weighting of the criterion.

Determining overall score:

The total score is calculated by adding together the weighted scores of all criteria. The bid with the highest total score wins the tender.

Example of EMVI application

Suppose a contracting authority has a construction project and uses the following criteria: price (50%), quality (30%), and sustainability (20%). Three companies bid with the following scores:

  • Company A: Price = 90, Quality = 80, Sustainability = 70
  • Company B: Price = 85, Quality = 85, Sustainability = 80
  • Company C: Price = 80, Quality = 90, Sustainability = 90

The weighted total scores are:

  • Company A: (90 x 0.5) + (80 x 0.3) + (70 x 0.2) = 81
  • Company B: (85 x 0.5) + (85 x 0.3) + (80 x 0.2) = 83
  • Company C: (80 x 0.5) + (90 x 0.3) + (90 x 0.2) = 85

In this example, Company C wins because it has the highest overall score despite not offering the lowest price. This illustrates how EMVI allows for a more balanced choice.

Why is EMVI used?

EMVI is increasingly being used because it allows for a comprehensive assessment of tenders, including more than just price. This is especially important in complex or large projects where quality, sustainability and innovation play a major role. By using EMVI, contracting authorities can ensure that they get the best value for money, rather than simply choosing the cheapest option.

Benefits of EMVI:

  • Better value for money: EMVI encourages choosing the tender that offers the best balance between price and quality.
  • Encouragement of innovation: Bidders are encouraged to offer innovative and sustainable solutions as these can earn extra points.
  • Increased quality: By not focusing only on price, parties are encouraged to improve the quality of their offerings.
  • Sustainability: EMVI allows environmentally friendly and sustainable options to be included in the evaluation, contributing to corporate social responsibility.

Disadvantages of EMVI:

  • Complexity: Drafting and assessing EMVI criteria can be time-consuming and complicated, slowing down the process.
  • Subjectivity: While the criteria are clear, the assessment of quality or sustainability can sometimes feel subjective.

EMVI in practice

In practice, EMVI is often applied in sectors such as construction, infrastructure, IT services, and government projects. Examples of EMVI criteria include technical specifications, schedules, references from previous projects, and sustainability certificates. By establishing clear and well-considered criteria, contracting authorities and bidders can jointly contribute to a more efficient and effective procurement process.

Conclusion: What is EMVI and why is it important?

EMVI, or Most Economically Advantageous Tender, is an evaluation method that looks beyond price. It allows tenders to be evaluated on a wide range of criteria, leading to better value for money, more innovation, and sustainable solutions. By using EMVI, contracting authorities can select the tenderer that offers the most value for their project, resulting in better outcomes for both the contracting party and the performing party.

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