Step 4: Evaluate Bids & Select Vendor
Overview: The final selection of a vendor should be done objectively, fairly, and according to the criteria set forth in the bid package. The information below is intended to help facilitate that process.
Process: Follow the steps below to complete your bid evaluations and select a vendor.
Follow these steps
Step 1: Bid Evaluation Form - If you have not already done so, prepare a bid evaluation form that is consistent with the criteria set forth in the bid package.
Step 2: Identify Review Team Members - If you have not already done so, identify the specific individuals who will review and evaluate the bids. The review team should be made up of unbiased individuals with sufficient technical knowledge and understanding of the project to make informed judgments regarding each vendor's technical proposal.
Step 3: Assemble Review Team - Assemble the review team (meeting or conference call) and provide instructions for reviewing bids, with emphasis on the following:
- Bid evaluation criteria and use of the review form
- Timing for completion of review
- Expectations for objectivity and independence
- Process for obtaining clarification of vendor's proposal
Step 4: Eliminate Non-Conforming Proposals - Eliminate any proposals that do not conform to the bid specifications. Note: This can be the first sign that the vendor is not interested in meeting client expectations or is not careful about quality control.
Step 5: Distribute Technical Proposals - Distribute copies of all conforming technical proposals to the review team, ensuring that vendor anonymity is maintained if specified.
Step 6: Review Technical Proposals - Review team reviews and evaluates the technical proposals as instructed and submits their evaluation forms by the specified deadline. Note: If clarification of a vendor's proposal is needed, this should be obtained in accordance with the procedures set forth in the bid package.
Step 7: Create Short-List of Bidders - In accordance with the bid evaluation criteria set forth in the bid package, create a short-list of bidders. Note: This is usually done by eliminating bidders that consistently scored low according to most or all of the review team members.
Step 8: Review Cost Proposals - In accordance with the bid evaluation criteria set forth in the bid package and as reflected on the bid evaluation form, review the cost proposals of the short-listed bidders.
Step 9: Make Final Selections - In accordance with the bid evaluation criteria set forth in the bid package and as reflected on the bid evaluation form, select a primary vendor and a back-up in case an agreement on a final contract cannot be reached. Note: In some cases, it may be in the project's best interest to combine the resources of two bidders, either by issuing separate contracts for separate pieces of the project or by asking one of the vendors to restructure their bid to include the resources of the other vendor. In the case of the latter, the prime contractor should be required to provide specific details regarding the portions of the work that will be subcontracted. Otherwise, the prime contractor may attempt to do the work themselves and the benefits of combining the two bidders will have been lost.
Step 10: Notify Bidders - Notify the successful bidder that they have been selected pending successful execution of a contract. Notify the back-up bidder of their status. Notify any remaining bidders of their status and provide feedback regarding their bid. Note: Providing feedback to vendors who submitted good bids is important as it can help to improve future bids that they may be asked to submit.
Step 11: Negotiate Contract - Work with the selected vendor(s) to negotiate the final terms of the agreement. The agreement should include the technical specifications for the project, as bid, unless changes have subsequently agreed to by both parties and contract pricing has been adjusted accordingly. Note: If an agreement cannot be reached, negotiations should move to the back-up vendor.
Step 5: Manage the Project
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