What is evaluating offers?
The evaluation process must follow the method set out in the evaluation plan.
Steps include:
- Determine the evaluation team
- Identify, manage, and review conflicts of interest
- Distribute copies of the offer documents
- Assess mandatory and weighted criterion
- ensure probity and fairness to all suppliers
- Identify the submission(s) that best meets the procurement requirements
- Achieve optimal value for money
- Mitigate risk
How to evaluate offers
Step 1: Determine the evaluation team
The evaluation team will assess the offers against the mandatory and weighted criterion set out in the evaluation plan.
The evaluation team should consist of 3-5 people. Using a team of people will ensure submissions are given a fair and objective evaluation.
The team may include technical specialists, cultural, financial, or legal expertise depending on the procurement requirements.
Make sure each panel member:
- understands the skills, knowledge and expertise required to ensure a robust evaluation
- is available to participate over the evaluation process timeline
- follows processes for declaring and managing conflicts of interest
- follows processes to maintain confidentiality
Step 2: Manage probity and conflicts of interest
Conflicts of interest can arise during this task. Identify, declare, and manage these.
Use of a probity advisor or probity auditor may be required, depending on the value of the procurement. See:
- For goods and services – Guide to probity
- For construction – Managing probity in public construction procurement (Construction Direction and instruction 4.2)
See, the Victorian Public Sector Commission, ethics and behaviours during conflict of interest.
Step 3: Distribute copies of the offer documents
Distribute copies of the offer documents to members of the evaluation team.
Ensure that all parts of the distribution meet security and confidentiality requirements.
Step 4: Follow the evaluation plan
Follow the evaluation methodology defined in the evaluation plan.
Mandatory evaluation criteria
Check that all mandatory criteria are submitted. The offer will receive a pass or fail. If any of the mandatory criteria are missing, the offer is non-conforming or incomplete. Non-conforming tenders should be eliminated from the evaluation process.
Alternative offers
Participants may submit an alternative offer. An alternative offer may meet an Agency’s need by offering different:
- goods, services or works to that outlined in the specification
- pricing method
- source of supply – overseas or local
- delivery times
- delivery volumes
Check the approach to market documents to see if alternative offers can be considered.
All alternative offers must meet the mandatory evaluation criteria otherwise it is non-conforming and cannot be considered.
Weighted evaluation criteria
Evaluate the weighted criteria based on the methodology in the evaluation plan. This section will have a high or low score depending on the response. The weighted criteria must be applied fairly and equability to all offers.
Document each decision so it can be recorded in the evaluation report.
For goods and services, see Evaluate and select offers - goods and services guide.
Step 5: Special evaluation requirements
Additional evaluation requirements may apply under procurement-related policies.
See, Evaluate commitments under procurement-related policies.
Step 6: Follow local procedures to ensure probity and fairness to all suppliers
Probity and fairness must be applies at all stages of procurement.
During the evaluation process Agencies must always act fairly. Agencies need to think about how actions may be interpreted by participants.
Agencies should have probity and fairness controls in place to avoid corruption and encourage transparency. Follow these rules.
More information:
Step 7: Identify the offer(s) that best meets the procurement requirements
If the procurement is:
- Low risk
- Low complexity
- Low response
Go to Select the preferred offer.
Review the submission and remove the offers that are:
- Non-conforming
- Non-compliant
- Non-competitive in comparison to other submissions that demonstrate higher levels of potential value for money
This process should create a short-list of participants. The shortlist offers must
- Achieve optimal value for money
- Mitigate risk
Consider:
Address Agency rules
Consult Agency procurement team for advice on meeting:
- procurement rules and policies
- Agency specific rules and policies
Follow Agency specific rules on when to seek an approval and who can give the approval.
Follow Agency specific rules for recording decisions and storing records.
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