Once tender documents have been filled in by the tenderers and submitted before the deadline the evaluation process will take place. Use this page to understand how the evaluation process works.
How it works
We evaluate against a set criteria when evaluating tender applications. We also consider value for money, social value and complete thorough financial checks before offering an applicant a contract.
A panel made up of subject matter experts and those likely to make use of the contract will evaluate tender responses against the pre-determined list of factors, and make an assessment of both the quality and cost of the tendered response.
The balance between quality and price will depend on the particular service area or product tendered for.
When evaluating an application, we consider the following criteria:
- Product quality and range
- Customer service standards
- Supplier capacity to deliver the requirements
- Whole life cost of the product
We consider value for money
We usually award contracts on the basis of value for money (often referred to as Most Economically Advantageous Tender or ‘MEAT’). This means that contracts will be awarded to organisations best able to meet our contract specification.
We consider social value
In accordance with the Social Value Act, we also consider the potential added social value of an application. This means that we will consider the added social benefits of choosing a particular application, ensuring that the community of Bath & North East Somerset will actively benefit from our procurement choices.
As part of our evaluation process, we also carry out financial checks on potential tenderers before we award a contract.
Suppliers to the council must be in a sound financial position to provide the goods, works or service that we require.
When undertaking the financial assessment, we look at the two most recent sets of the applicant's accounts [one if PAS91], which shows three years of financial information [two if PAS91], along with those of any parent company (if applicable and acting as guarantor).
The financial assessment is conducted in two stages.
We have 4 key minimum requirements for financial considerations. If your organisation fails to meet 3 of the 4 requirements, your bid will be excluded from further consideration. You will not proceed to stage 2 of the Economic and Financial Standing assessment.
The 4 requirements are:
- The value of the contract must be no more than 51% of your annual turnover.
- The organisation must be financially strong enough to meet the payment schedule of its current assets.
- The organisation's account must not show continual losses.
- If the net worth of a tenderer is in a negative position, this will be deemed a fail.
Expand the links below for more detail on our requirements.
1. The value of the contract must not exceed 51% of your annual turnover
2. The organisation must be financially strong enough
3. The organisation's account must not show continual losses
If your tendering organisation passes at least 3 of the 4 key criteria, a full financial assessment will take place.
The full financial assessment could include the following:
- Selected ratio analysis of account figures
- Any CCJ's you may have against you
- Any adverse information on company directors
- Commercial Delphi Score (risk rating)
We run an Experian check which provides averages for the industry, information on any County Court Judgements (CCJ), information on directors and a Commercial Delphi Score.
What is an Experian check?
Measuring the results
Each ratio and other criteria will carry a points score. 0 for a fail, and 1 for a pass. Points are tallied at the end of the assessment to give an overall score. The score is then matched to a predetermined risk based scoring model where tenderers will be assessed as low, medium or high risk.
Making the final decision
The final decision regarding the acceptability of your organisation’s financial standing relies on a degree of professional judgement from the council. If we decide that your financial standing is insecure, that you do not have the ability to perform the contract and your organisation represents an unacceptable risk to the council, then your organisation will be excluded from further consideration in this process.
We inform applicants of our decision
You will be informed in writing of the outcome of your submission. Unsuccessful applicants will be provided with feedback about their bid. With careful consideration for commercial confidentiality, the Responsible Officer will inform you of which areas of your tender were strongest and where there may be room for improvement and development.
Though it is not common, during the tender evaluation stage we may invite you to give a presentation, attend an interview or a site visit may be arranged as part of your submission. Not all applications require this. If we do decide to request a presentation or interview, you will be informed with plenty of notice and the process is only for clarification purposes.