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
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.
Extent of quality assurance
Time to completion
* 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: