- How Are Bids Evaluated in Tenders?

Bids submitted in tenders are evaluated through several stages based on specific criteria set by the announcing entity, with the aim of selecting the best offer in terms of quality and cost. Below are the basic steps for evaluating bids in tenders:

1. Technical Evaluation

In this stage, the technical proposal submitted is examined to ensure it matches the tender requirements, and it includes:

• Reviewing Product or Service Quality: Ensuring the technical specifications of the bids meet the project requirements.
• Previous Experience: Considering the company's past experiences in executing similar projects, as experience increases the chances of bid acceptance.
• Technical Capability: Evaluating the company's possession of the necessary technical and human resources to efficiently execute the project.

2. Financial Evaluation

After passing the technical evaluation, the process moves to financial evaluation to ensure the submitted bid aligns with the specified project budget, focusing on:

• Proposed Costs: Analyzing the costs included in the bid, including resource costs, wages, and administrative expenses.
• Suitability with the Service or Product: Evaluating the financial offer's fit with the quality and services provided, ensuring appropriate value.

3. Quality and Compliance Standards

The supplier's adherence to quality according to the required time and execution standards are reviewed, including:

• Quality Standards: Ensuring that the supplier adheres to the quality standards set by the announcing entity, through performance and quality measures.
• Adhering to Schedule: Evaluating the supplier's ability to execute the project according to the submitted timeline and adhere to deadlines.

4. Comparing Offers

The technical and financial offers of all participants are compared with the aim of balancing quality and cost:

• Balance Between Quality and Price: Selecting the offer that provides the best value based on achieving acceptable quality within the allocated cost range.
• Competitive Capability: Selecting the most competitive offer, which achieves the balance between service quality and its price.

5. Final Decision

Based on the technical and financial evaluation, the announcing entity makes the final decision:

• Selecting the Most Suitable Offer: Choosing the offer that provides the best balance between quality and cost.
• Communicating with the Winner: After making the decision, the winning supplier is contacted to proceed with contract finalization and execution arrangements.

These steps aim to ensure the selection of the best offer that meets the project needs and provides the best value to the announcing entity in terms of quality and cost.