What you need to do

Evaluate tenders using an evaluation model based on the criteria defined in the evaluation strategy and lodged with the procurement unit before tenders are received.

If there has been a separate proposal evaluation stage, suppliers' solutions will already have been assessed. The evaluation will therefore need to revisit this to take account of any changes to their solutions, and consider the financial aspects of the bid. If there has been no separate proposal evaluation, all aspects of the bid will need to be fully evaluated.

After an initial evaluation to identify those suppliers offering the best potential value for money, it may be appropriate, where there has been no negotiation stage, to undertake post tender negotiation to see whether further vfm gains can be made. See the briefing on Post Tender Negotiation.

Evaluate financial and non-financial aspects separately (see briefing on VFM). Ensure that the financial aspects cover costs over the life of the contract. Confirm that stakeholders' needs will be met. Confirm that there is a shared understanding of risk, how it is to be allocated and agreement on how it is to be managed.

See also the guidance describing the methodologies for quantifying value for money gains from procurement activity in central civil government in England. Other public sector bodies may also wish to use this guidance.

Points to consider

Seek the bid that best meets the requirement and offers value for money:

• Meeting the requirement: ensuring that the bid covers everything that is currently required, to the required quality of service (note that assumptions about the business direction should continue to be checked throughout the procurement process).
• The most appropriate option: checking that all appropriate options have been considered before narrowing down the choices for the way forward.
• Achievability: checking that the tenderer fully understands the implications of implementing the service and can support this with appropriate plans for risk management and quality.
• Affordability: this should include checking that all relevant costs are included; any likelihood of significant cost changes over the life of the contract; any proposed changes in pricing structure over the life of the contract. There should also be continuing confirmation from within the department that funds are available.
• A sound commercial arrangement: value for money to the department and reasonable return for the provider
• There are two options when calling off contracts under a framework arrangement:

1. Call-off from the supplier who provides the best value for money offer, based on the award criteria used at the time the framework was established.

2. Where the award criteria of the framework are not precise enough for a simple call-off, then a mini-competition must be held with all suppliers in the framework who are capable of meeting the particular need.