The low bid scoring formula, also know as the “Relative to lowest bid score,” is the most used method / formula in the world. It is called relative to lowest bid score because the lowest bid gets the maximum price points and other bidders get proportionally less. E.g. if a price is double the lowest bid, it get half of the maximum price points. It is so much used that many people do not even know that it is not the only formula for evaluating the price component of a bid.

## Formula

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

WQ = Weight of a Quality criterium

Qi = Quality score of bidder i on a Quality criterium

Σ = sum; multiple scores of multiple weighted Quality criteria are summed; WQ1 x Qi1 + WQ2 x Qi2 + etc

WP = Weight of Price

Pbest = Price of lowest (responsive) bid

Pi = Price of bidder i

The bidder with highest Best Value total score wins

## Example

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, so Σ WQ x Q i  =   60 x Qi1  +  40 x Qi2  +  30 x Qi3

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