Procurement Process

Evaluation Criteria

Definition: The specific factors, weightings, and standards that a government agency uses to assess and compare tender responses in order to determine which supplier offers the best value for money.

What are Evaluation Criteria?

Evaluation Criteria are the published factors that a government agency uses to assess tender responses. They define how submissions will be scored and compared, and they are a critical element of every Request for Tender, RFP, and RFQ. Under Australian procurement rules, agencies must evaluate responses only against the criteria stated in the tender documents.

Common Types of Evaluation Criteria

While criteria vary by procurement, common categories include:

  • Technical capability — does the supplier have the skills, experience, and resources to deliver?
  • Methodology and approach — is the proposed approach sound and well-considered?
  • Relevant experience — has the supplier delivered similar work successfully?
  • Key personnel — do the proposed team members have the right qualifications and experience?
  • Price — is the pricing competitive and does it represent Value for Money?
  • Risk management — has the supplier identified and mitigated key risks?
  • Local Content — does the supplier use Australian or local businesses and workers?

How Are Criteria Weighted?

Agencies typically assign weightings (as percentages or relative importance) to each criterion. For example:

  • Technical capability: 30%
  • Methodology: 25%
  • Price: 25%
  • Experience: 15%
  • Risk: 5%

Under the Commonwealth Procurement Rules, agencies must state the relative importance of criteria. Some state jurisdictions allow criteria to be listed in order of importance without specific percentings.

Tips for Tenderers

  • Structure your response around the criteria — use the same headings and numbering as the tender documents.
  • Allocate effort proportionally — spend the most time on heavily weighted criteria.
  • Provide evidence, not assertions — back up every claim with examples, data, or references.
  • Address every criterion — a blank or weak response to any criterion can significantly impact your overall score, even if you excel elsewhere.

Related Terms

Aboriginal and Torres Strait Islander Procurement Policy IPP

An Australian Government policy that sets mandatory targets for Commonwealth agencies to contract with Indigenous businesses, supporting economic development in Aboriginal and Torres Strait Islander communities.

Best and Final Offer BAFO

A stage in a multi-phase procurement process where shortlisted tenderers are invited to submit their most competitive revised offer, typically after clarification discussions with the procuring agency.

Conflict of Interest COI

A situation where a person involved in a procurement process has a personal, financial, or professional interest that could, or could appear to, improperly influence their decisions or actions.

Due Diligence

The process of investigating and verifying a tenderer's claims, financial standing, capability, and suitability before awarding a government contract, conducted by the procuring agency.

Goods and Services Tax (GST) in Procurement GST

The 10% consumption tax applied to most goods and services in Australia, which tenderers must correctly account for in their pricing and which agencies must manage in accordance with tax law.

Local Content Requirements

Government procurement policies that encourage or require tenderers to use local suppliers, workers, materials, or services, supporting Australian industry and regional economic development.

Non-Conforming Tender

A tender submission that fails to meet one or more mandatory requirements specified in the tender documentation, which may result in the bid being excluded from evaluation.

Probity

The ethical standards, fairness, and transparency requirements that government agencies must uphold throughout the procurement process to ensure all suppliers are treated equally and decisions are defensible.

Request for Proposal RFP

An invitation for suppliers to propose a solution to a problem or need, where the agency defines the outcome it wants but allows respondents flexibility in how they deliver it.

Request for Tender RFT

A formal invitation from a government agency for suppliers to submit a detailed bid to deliver specific goods, services, or works against clearly defined requirements and evaluation criteria.

Returnable Schedules

Standardised forms and templates included in tender documentation that tenderers must complete and return as part of their submission, covering areas such as pricing, capability, compliance, and referees.

Statement of Requirements SOR

The section of a tender document that details exactly what goods, services, or works the government agency needs, including specifications, deliverables, timelines, and performance standards.

Value for Money VFM

The core principle of Australian government procurement requiring agencies to consider the overall benefits of a purchase relative to its total cost, not just the lowest price.

Weighted Criteria Assessment

An evaluation methodology used in government procurement where each assessment criterion is assigned a percentage weighting reflecting its relative importance, and tender responses are scored against each weighted criterion to determine the best overall submission.

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