RE: Financial Evaluation13 Mar 2019 09:03
@NoEasy. Normally the FE takes an hour or a day. I'll give you an example: Techncal evaluation takes place, which can take which can take a few days/weeks depending on the complexity of the RFP. A % score is given out of 100. The technical and financial scores normally have a ratio, say 70% technical and 30% financial. So the tech score as a % is then weighted, in this case x 7/10. So 100% will be weighted to 70% overall score. When they open the financial bids (they will be in a separate envelope) the lowest price gets top marks, in this case 30%. That is added to their overall weighted technical score to give an overall score. The next lowest price (or in this case the other price) is scored as follows: (30 x lowest price)/price being evaluated.
Once a winner is declared, there may be an initial negotiation with that bidder, and then the whole process goes to another department for audit. For example for UN bids, it will take 3-4 weeks for the 'audit' to be complete, and a contract is then awarded. Official announcements happen only when the contract is awarded.
Tips. If any company states that they have been in discussions with the client over pricing - then they are the winning bidder. Only the top dog gets spoken to on price.
So with current evaluation if this was a 70:30 bid then Tlou's weighted technical is 62.86% and Sekaname is 60.48%. Say Sekaname came in cheapest, then they will get an overall score of 90.48%. Tlou would have to beat that and score 27.62% on the financial proposal. No idea what these prices are but suppose Sek comes in at $50m, then Tlou would need to be at or below $54.3m to win.
Lots of assumptions but hope this helps.