When evaluating solicitations, there are many different ways to score proposals. Many times, agencies will provide scoring rubrics in which they list out the potential points that can be accumulated by vendors per section (as seen in the example 1 below). The evaluation committee will then score each vendor based on their method/formula of award in order to select a finalist(s).


Negometrix takes this a step further by integrating awarding formulas into the software. In this article, we describe our “Low Bid Scoring” formula.


What is Low Bid Scoring?

“Low Bid Scoring” is the most used method/formula in the world. It is called “Low Bid” because the lowest bid gets the maximum price points.


Mathematically simplified it is written as:  Best Value total score = Σ WQ x Qi + WP x Pbest / Pi

Σ = sum (multiple scores of multiple non-price coterie are summed)

WQ = Weight of Quality (= total of points given to non-price criteria)

Qi = Quality score of bidder i

WP = Weight of Price

Pbest = Price of lowest (responsive) bid

Pi = Price of bidder i

The bidder with the most point wins


Example 1: An RFP document will have a criteria and weight table like this:

max points        in percent                      Criteria  

60                    30%                              Experience        

40                    20%                              Extent of quality control / quality assurance       

30                    15%                              Time to completion       

70                    35%                              Price score

200                  100%               


In this case, there are 3 quality criteria (excluding price), so Σ WQ x Q i  =   60 x Q1i  +  40 x Q2i  +  30 x Q3i


Example: Bidder A scores 40 (of 60), 30 (of 40), 20 (of 30) and submits a price of $ 10,000. Bidder B scores 32, 20, 22 and submits $ 8,000. Bidder A has more points (146) than bidder B (144) and wins.


max points     

in percent

             Criteria

bidder A 

(%)

bidder B

(%)

60

30%

  Experience

40

20%

32

16%

40

20%

  Extent of quality assurance

30

15%

20

10%

30

15%

  Time to completion

20

10%

22

11%

70

35%

  Price score

   56*

28%

    70**

35%








200

100%

  total

146

73%

144

72%


*  8,000 / 10,000 x 70 (max points) = 56 points         ** 8,000/8,000 x 70 = 70 points


This formula is one of the many awarding formulas included in the Negometrix platform. If you have any further questions regarding formulas, when to use them, or which ones to use, please contact our service desk:


Phone: 724-888-5294

Email: Servicedesk.us@negometrix.com