What are award criteria?

Award criteria are the rules, conditions and specifications used to evaluate and select bids in tenders and tenders. These criteria help the contracting authority objectively determine which tender wins the contract. Award criteria can range from lowest price to best value for money (Economically Most Advantageous Tender, EMVI) and other specific requirements, such as sustainability or technical ability. The purpose of award criteria is to ensure transparency and fairness in selecting the best supplier or service provider.

How do award criteria work?

When a contracting authority publishes a contract, award criteria are established in advance and shared with all bidders. These criteria describe the basis on which bids will be evaluated. During the evaluation, the tenderers' offers are compared against the award criteria. The party that scores best on these criteria is usually selected for the contract.

Thus, the award criteria are of great importance because they guide bidders in how to design their offer. A good understanding of these criteria increases the chances of success in tendering.

Types of award criteria

Award criteria can be divided into several categories depending on the nature of the contract and the specific requirements of the contracting authority. Here are some common types:

Lowest price:

This is the simplest award criterion where the contract is awarded to the bid with the lowest price. The disadvantage of this criterion is that it does not always lead to the best quality or the most sustainable solution.

Most Economically Advantageous Tender (EMVI):

EMVI is an award criterion that looks beyond price alone. It involves assessing a combination of factors, such as price, quality, sustainability, planning, and risk. EMVI is often used to make a balanced choice between cost and other valuable aspects of a tender.

Quality:

This focuses on the quality of the service or product offered. Quality criteria may include, for example, technical specifications, previous experience, and references.

Sustainability:

Increasingly, sustainability and environmental performance are being included as award criteria. This can include, for example, the use of sustainable materials, CO2 reduction, or energy efficiency.

Innovation:

In some cases, innovation is used as a criterion, looking at how innovative and progressive a solution is. This can be important in projects where technological advances and improvements are desired.

Why are award criteria important?

Award criteria are crucial because they ensure the objectivity, fairness and transparency of the procurement process. By setting clear criteria, bidders know exactly what they must meet to have a chance of winning the contract. This helps ensure a level playing field and allows the contracting authority to select the most suitable party.

Benefits of clear award criteria:

• Objective evaluation: Bids are evaluated based on predefined and measurable criteria, ensuring fair selection.
• Transparency: All bidders have equal access to the criteria, making the process transparent and auditable.
• Quality assurance: By looking beyond price, contracting authorities can also include valuable aspects such as quality and sustainability in their choice.
• Encouraging innovation: Award criteria can encourage companies to offer innovative solutions that would not otherwise be considered.

How do you establish good award criteria?

Formulating good award criteria is a critical step in the procurement process. Here are some tips for formulating effective award criteria:

1. Be specific and measurable: Make sure the criteria are clearly defined and measurable. This prevents misunderstandings and ensures an objective assessment.
2. Consider objectives: Align award criteria with the objectives of the contract. If sustainability is important, make sure it weighs heavily in the evaluation.
3. Avoid excessive complexity: Overly complex criteria can confuse bidders. Keep criteria understandable and relevant.
4. Consult the market: Conduct a market consultation to find out what criteria are feasible and meaningful. This ensures a realistic and workable approach.

Award criteria in government procurement

In government procurement, award criteria are often strictly regulated by laws and regulations to ensure fair competition. Governments use clear criteria such as EMVI to reward not only the cheapest, but also the most valuable tenders. This contributes to better spending of public funds and achieving societal goals, such as sustainability.

Conclusion: What are award criteria and why are they essential?

Award criteria are the cornerstone of the selection process in bids and tenders. They ensure that tenders are assessed fairly, transparently and objectively. By establishing clear and relevant award criteria, contracting authorities can select the best party for their contract, contributing to quality, innovation and efficiency in project implementation. It is crucial for tendering companies to properly understand the award criteria and respond to them with their bid.